Solar panel prices jump ahead of budget amid GST hike fears

Karachi: Solar panels have become more expensive even before the announcement of the federal budget and there are concerns that prices may rise further if the proposed increase in sales tax is approved.

According to reports, a significant increase in solar panel prices has been recorded ahead of the federal budget. The government is reportedly considering raising the General Sales Tax (GST) on solar panels from 10% to 18%.

Market sources said that the price of solar panels has already increased by Rs. 7,000 to Rs. 9,000 per panel while inverter prices are also expected to rise in the coming days. The price of a 585-watt solar panel has increased from Rs. 18,000 to Rs. 27,000.

Similarly, the price of a 645-watt solar panel has risen from Rs. 22,000 to Rs. 31,200. The price of a 720-watt solar panel has also increased from Rs. 25,000 to Rs. 33,500. It is worth noting that a special scheme for solar energy users is also under consideration for the next fiscal year.

Under the proposed plan, electricity generated by solar panels installed in rural areas could be credited to consumers living in urban areas.

According to Usman Shaukat, President of the Rawalpindi Chamber of Commerce and Industry, the proposed solar energy wheeling policy was discussed during a meeting with Shehbaz Sharif.

He stated that under the proposed scheme, people who do not own land in cities but have land in rural areas would be able to install solar systems there and receive relief on the electricity bills of their homes or apartments in urban areas.