Why are solar panels prices dropping in Pakistan?

Solar panel prices in Pakistan have significantly decreased to around Rs. 30-32 per watts, the lowest in recent years. This drop is primarily due to three key factors:

1. Oversupply in the Local Market: An oversupply of solar panels in Pakistan has contributed to the sharp reduction in prices. With more panels available than the current demand, prices have been driven down.
2. Declining International Rates: The global decrease in solar panel prices has directly impacted local costs. As international prices for solar panels fall, the prices in Pakistan have also decreased in response.
3. Plummet in Lithium Battery Prices: The international price of lithium batteries, which are essential components of solar energy systems, has dropped by half in recent years. This significant reduction in battery costs has had a notable effect on lowering the overall cost of solar panels in the domestic market.

While the prices of lithium batteries have decreased, dry battery prices have remained high due to importers’ reluctance to lower local prices. Despite this, the overall shift towards solar energy has been accelerated by the high cost of grid electricity, prompting consumers to seek more affordable and reliable solar energy options.