Solar panel prices in Pakistan have seen a significant drop of 15% to 25% due to a surge in imports and an abundance of supply compared to demand. Faisal Bawani, a prominent importer of leading solar panel brands, revealed that prices per watt have decreased by Rs7 to Rs13 over the last four months, thanks to a substantial increase in supply relative to consumption. This influx includes 4GW of solar panels in 2023 and 7.5GW from January to April 2024, leading to historic lows in local market prices, now ranging from Rs38 to Rs40 per watt.
Market analysts attribute this price decline to a pause in solar panel exports from China to major markets like the United States, Europe, and India, coupled with a reduction in panel prices by 1.5 to 2 cents per watt from China itself.
While solar panel costs have plummeted, the prices of solar inverters have remained stable. Inverter prices currently range from Rs80,000 to Rs3,25,000, depending on the capacity.
However, importers who purchased solar panels at higher prices are feeling the pressure of this price war, as they must now compete by selling at prevailing market rates. The influx of new players, including those from various industries and trades, has intensified competition and led to price erosion, forcing some importers to sell below their cost.
Bawani noted that while the solar panel business is dynamic, recent developments in real estate and other sectors have attracted new entrants, amplifying market dynamics and challenging established pricing structures.
