Solar panel prices in Pakistan have seen a significant decline after recent amendments to the federal government’s net metering policy. The cost of installing solar power systems has decreased by Rs35,000 to Rs175,000, depending on system size and market conditions.
Currently, a 5 kW solar system is priced between Rs5 lac to Rs5.5 lac, while a 7 kW system costs around Rs6 lac. A 10 kW system is available for over Rs8 lac, and a 12-15 kW system now exceeds Rs1.2 million.
The price drop follows the government’s decision to reduce the net metering buyback rate to Rs10 per unit and introduce net billing for new consumers. Additionally, the limit for solar capacity installation has been lowered to 10% above the sanctioned load, down from the previous 50%. Existing consumers will be affected once their contracts expire.
While the policy aims to control the rising financial burden on grid electricity consumers—projected at Rs545 billion by 2034—it has faced criticism from some ministers who fear it could negatively impact consumers and the solar market.
Despite these concerns, the decline in solar panel prices has made solar energy more accessible, encouraging more consumers to invest in renewable power. The Economic Coordination Committee (ECC), chaired by Finance Minister Senator Muhammad Aurangzeb, approved the amendments in a recent meeting attended by key federal ministers and officials. The government maintains that these measures are necessary to balance the financial impact of net metering on the national grid.
