In a positive development for green energy advocates, the prices of solar panels in Pakistan are expected to decline following a reduction in customs valuation. This comes as welcome news after recent price hikes caused by the imposition of a 10% sales tax on solar products.
The Directorate General of Customs Valuation has issued Valuation Ruling No. 2012/2025, reducing the assessed import price of solar panels to US$0.08 per Watt—a historic low. Industry leaders, especially the Pakistan Solar Association (PSA), had been demanding this change for months, arguing that inflated customs valuations were hampering growth in the solar sector.
Importers and installers have applauded the move, anticipating that the reduced duties will make solar systems more affordable for consumers and help accelerate the country’s transition to renewable energy.
Meanwhile, Prime Minister Shehbaz Sharif has once again intervened to stop a campaign against net metering, which allows consumers to sell excess solar energy back to the national grid. This marks the third time he has directed authorities to halt any narrative-building efforts against the policy, even before any formal proposal reached the federal cabinet.
A senior Power Division official admitted that the Ministry of Information had been instructed to shelve the campaign, which aimed to change public perception before revising the net metering policy. While such campaigns slowed net metering installations, there’s been a rise in hybrid solar systems—which operate independently of the national grid and do not help with energy surplus issues.
Previously, the Economic Coordination Committee (ECC) had approved changes to reduce the buy-back rate for solar power, but the federal cabinet rejected the proposal after strong backlash from civil society and solar users.
On July 10, Federal Energy Minister Awais Leghari announced that a new plan—developed in consultation with stakeholders—will soon be presented. This updated policy could extend the payback period for solar investments from 1.5 years to 2–3 years.
