For many households in Pakistan, installing a solar panel system has become one of the most effective ways to reduce rising electricity expenses. As utility bills continue to increase, thousands of families have turned to solar energy to lower monthly costs and gain relief from expensive power tariffs.
However, adopting a solar panel system may soon become more costly. A proposal being considered for the upcoming Budget 2026-27 seeks to increase the sales tax on solar panels from 10 percent to 18 percent. If approved, the move is expected to push up installation costs and make renewable energy less accessible for many consumers.
Market estimates indicate that solar panel prices could rise by around Rs1,800 to Rs2,400 per unit. Such an increase would add a significant burden for households planning to switch to solar energy, particularly middle-income families already struggling with inflation and economic challenges.
According to industry projections, several popular solar panel models may become noticeably more expensive. The Risen 585W N-Type Bifacial panel, currently available for around Rs25,000, could increase to nearly Rs27,000. Likewise, the Trina 720W N-Type Bifacial panel may rise from Rs32,000 to approximately Rs34,000. Other major brands, including LONGi, Canadian Solar, Tongwei, Yingli, Astronergy, Aiko, and Hanersun, are also expected to witness price hikes if the proposed tax increase is implemented.
The proposal comes as Pakistan continues negotiations with the International Monetary Fund (IMF) for a new long-term financial program. As part of these discussions, the government is reportedly considering measures aimed at broadening the tax base and reducing exemptions across different sectors.
Although no final decision has been announced, economic experts warn that higher solar panel prices could slow the growth of Pakistan’s renewable energy sector. Solar adoption has expanded rapidly in recent years as consumers searched for alternatives to costly grid electricity and frequent power outages.
Analysts believe the proposed tax increase may discourage new investments in solar energy at a time when demand for clean and affordable power solutions is growing. The final decision regarding solar panel taxation is expected to be revealed in the federal Budget 2026-27, which will outline the government’s economic and fiscal priorities for the next year.
Also Read: Senate and NA Panels Reject Proposed 18% Tax on Solar Panels
