After the federal government announced an 18% sales tax on solar panels in the new budget, profiteers raised prices by Rs5 to Rs7 per kilowatt, causing an immediate impact on consumers. With the country already facing severe power outages, many citizens say that even switching to solar has now become unaffordable.

Consumers report that within just two days, solar panel prices have increased by up to Rs75,000, despite the panels already being in local warehouses.

The cost per kilowatt has surged from Rs27 to Rs35, making solar installations significantly more expensive for households and small businesses that rely on them as an alternative to unreliable grid electricity.

Importers have confirmed that the new 18% tax will be passed on to end users, further burdening those seeking sustainable energy solutions.

According to international trade data, Pakistan is the third-largest importer of solar panels in the world, bringing in 17 gigawatts worth of equipment in 2024 alone. Experts warn that this policy could slow down the country’s renewable energy adoption and increase dependence on costly and unstable electricity supply.

Citizens and energy advocates are calling on the government to reconsider or roll back the tax, emphasizing that affordable solar energy is not a luxury, but a necessity in Pakistan’s ongoing energy crisis.