Following significant amendments in the net metering policy by the federal government, the prices of solar panels have decreased substantially in Pakistan.
As a result of these changes, the cost of installing solar systems has decreased, making it a more affordable option for consumers looking to transition to renewable energy. After the new policy, there has been a notable reduction in the prices of solar panels in the local market. Depending on the system capacity and location, prices have dropped by Rs 35,000 to Rs 175,000.
This decrease has played a major role in encouraging consumers to shift to solar energy as an alternative to expensive grid electricity. Currently, the prices of solar systems in Pakistan vary based on their capacity. A 5-kilowatt system is priced between Rs 500,000 and Rs 550,000, while a 7-kilowatt system costs about Rs 600,000.
Similarly, a 10-kilowatt system is priced over Rs 800,000, and a 12 to 15-kilowatt system has crossed Rs 1.2 million. The government recently reduced the solar net metering buy-back rate to Rs 10 per unit.
Additionally, a net billing system has been introduced for new users, and solar capacity installation has been limited to 10% above the approved load, which was previously 50%. These measures have been implemented to balance the financial impact of increasing solar installations on the national grid.
While the aim of these policy changes is to bring balance to energy costs, there are mixed opinions regarding their positive and negative effects. Some believe that the reduction in net metering rates and new restrictions may slow down the growth of the solar industry.
However, due to the lower initial costs, transitioning to solar energy has become relatively easier for both domestic and business consumers.
Despite these concerns, the solar market in Pakistan remains active, and with the price drop, more consumers are considering installing solar systems. The coming months will determine the direction of solar energy’s future in the country as a result of these policy changes.
