Solar panel prices rise ahead of expected tax hike in federal budget

Prices of solar energy equipment have increased in anticipation of a possible rise in taxes on solar panels in the upcoming federal budget.

Market sources said the prices of solar panels have increased by up to Rs4,000 per unit ahead of any formal announcement regarding new taxation measures.

Panels with capacities of 585 watts, 645 watts and 720 watts are currently being sold in the range of Rs26,000 to Rs32,000, depending on specifications and brand.

The prices of solar inverters have also risen by as much as Rs20,000, while the cost of solar systems ranging from 1kW to 3kW has increased by between Rs5,000 and Rs10,000.

Dealers further reported a sharp rise in demand for lithium batteries, pushing prices up by as much as Rs20,000. A 5kW lithium battery is currently selling for up to Rs260,000 in the market.

According to solar system dealers, a 10 per cent tax is already imposed on the import of solar panels.

Industry stakeholders are closely monitoring budget proposals amid concerns that additional taxation could further increase costs for consumers.