Uncertainty surrounding potential budget measures for the solar energy sector has triggered a sharp increase in solar system prices across Pakistan, with consumers facing significantly higher installation costs just days before the Federal Budget 2026-27 announcement.
Market sources report that prices of on-grid solar systems ranging from 5kW to 15kW have increased by as much as Rs. 200,000 amid concerns over possible taxation and policy changes affecting solar equipment imports.
The pre-budget surge has raised concerns among households and businesses planning to invest in renewable energy solutions, particularly as demand for solar power continues to grow due to rising electricity tariffs and energy costs.
According to market estimates, the price of a 5kW on-grid solar system has climbed by Rs. 150,000 to approximately Rs. 650,000. Similarly, a 7kW system now costs around Rs. 825,000 after witnessing an increase of Rs. 200,000.
The cost of a 10kW system has reportedly risen from Rs. 900,000 to Rs. 1.1 million, while 12kW and 15kW systems are now priced at approximately Rs. 1.25 million and Rs. 1.45 million, respectively.
Industry stakeholders attribute the price hike to uncertainty over possible fiscal measures expected in the upcoming budget, including reports of new taxes or duties on solar equipment. The anticipation of policy changes has prompted both consumers and suppliers to adjust purchasing decisions ahead of official announcements.
The reported prices apply only to on-grid solar systems. Consumers seeking off-grid solutions will face additional expenses for battery storage systems, which significantly increase overall installation costs.
The development comes as Pakistan continues to witness rapid growth in solar adoption, with households and businesses increasingly turning to renewable energy to reduce dependence on the national grid and manage electricity expenses.
Market observers say the government’s budget decisions regarding the solar sector will play a critical role in determining future investment trends and the affordability of renewable energy systems across the country.
