Solar panel prices to rise in Pakistan due to China's export policy shift

Solar panel importers are already facing slow sales because of recent floods
An undated image of solar panels. — Freepik
An undated image of solar panels. — Freepik

Solar panel prices in Pakistan are expected to surge as China is mulling over removing its export rebate on these products.

Industry experts revealed that the current rebate of 9% could be eliminated from October 1. Muhammad Faaz Diwan, the director of Diwan International Pvt Ltd, said the cost of solar panels in Pakistan might rise by 10% in the absence of this rebate.

Currently, the cost of a 585-watt solar panel in Pakistan is between Rs17,500 and Rs 19,100, depending on the brand and quality. If the rebate is withdrawn, these prices could jump by 9%.

It was also learned that importers are already facing slow sales, primarily driven by recent floods that have resulted in decreased demand.

Diwan noted that around 2,500 containers are imported each month at a cost of Rs100 million per container, adding that many are stuck at Pakistan Customs.

Inverex CEO Muhammad Zakir Ali added that the rebate's discontinuation could lead to a hike in the price of a 16-panel setup by 9%. The solar market has been weak in 2025 due to natural disasters, political instability, and reduced purchasing power, he maintained.

Aafaaq Ali Khan, vice chairman of the Pakistan Solar Association (PSA), pointed out that the industry is facing a double challenge of falling demand and excess supply.

As Pakistan imported 17 gigawatts of solar panels in 2024 and 12 gigawatts in the first half of 2025, the trajectory remains uncertain.

That said, rising solar panel prices may prove to be further burdensome on consumers looking to switch to renewable energy.