The Chinese government is reportedly considering ending export rebates on solar panels which is likely to result in a 10% increase in solar panel prices in Pakistan due to a potential rise in import costs from China.
“The rebate on solar panels may be reduced from the current 9% to 0%,” Faz Diwan, Director of Diwan International Private Limited, was quoted as saying in Business Recorder.
He added that the Chinese government is currently reviewing the decision, and the rebate is expected to be completely withdrawn by October 1. If the rebate is removed, solar panel prices in Pakistan could rise by approximately 10%.
Currently, the price of a 585-watt solar panel ranges between Rs17,500 to Rs19,100, depending on the company and quality. With the rebate removal, a price increase of nearly 9% is expected.
Faz Diwan further said that due to flooding in Pakistan, the demand for solar panels has already declined, creating challenges for importers.
On average, Pakistan imports around 2,500 containers of solar panels each month, with each container costing approximately Rs10 million.
Importers are currently selling panels at low prices as they lack the necessary funds to pay customs duties. If consignments are not cleared in time, additional charges will apply, forcing many to sell their stock at a loss.
