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The cost of solar panel prices in Pakistan could increase significantly as China considers removing its export rebate on solar panels.
Industry representatives revealed that the rebate, currently set at 9%, may be reduced to zero starting October 1. Muhammad Faaz Diwan, Director of Diwan International Pvt Ltd, explained that if the rebate is withdrawn, solar panel prices in Pakistan may climb by nearly 10%.
Currently, a 585-watt solar panel is sold between Rs17,500 and Rs19,100, depending on brand and quality. Without the rebate, this range could rise by 9%. Importers are already under strain due to slow sales, largely blamed on the floods that reduced overall demand. Diwan added that around 2,500 containers are imported each month at a cost of Rs100 million per container, with importers struggling to clear consignments stuck at Customs.
Natural Disasters and Instability Impact Solar Demand
Meanwhile, Inverex CEO Muhammad Zakir Ali said that the withdrawal of the rebate could push the price of a 16-panel set up by 9%. He noted that the solar season has remained weak in 2025, with natural disasters, political instability, and reduced purchasing power hurting demand.
Aafaaq Ali Khan, vice chairman of the Pakistan Solar Association (PSA), highlighted that the solar market is facing a double challenge of shrinking demand and excess supply. He said many rural households, which form the backbone of solar adoption, have been hit by flash floods, while urban areas are nearing market saturation.
Pakistan imported 17 gigawatts of solar panels in 2024 and has already brought in 12 gigawatts in the first six months of 2025. However, importers who expected demand to increase have been left with unsold stock as the market began to decline after April.
Khan stressed that once clarity emerges on China’s rebate decision and Pakistan’s economic stability, the industry may find its footing again. For now, rising solar panel prices in Pakistan could further strain both rural and urban consumers hoping to switch to renewable energy.
