Another renewable energy boost: solar panel prices drop sharply

LAHORE: In welcome news for the public, the prices of solar panel systems have dropped significantly across Lahore, with reductions of up to Rs 150,000 on systems ranging between 5 kW and 15 kW.

According to a private TV channel, the price of a 5 kW solar system has fallen to Rs 550,000, while a 7 kW system is now priced at Rs 625,000. Larger systems have also seen notable cuts, with 10 kW units now at Rs 900,000, 12 kW systems at Rs 1.05 million and 15 kW setups priced at Rs 1.3 million.

The decline in prices is expected to boost demand, especially among households seeking relief from rising electricity costs.

Last week, the federal government has temporarily suspended the 16 per cent general sales tax (GST) previously imposed on electricity generated through solar systems. The decision came as a major, albeit temporary, relief for households and businesses using solar power.

The decision follows the approval of a review petition filed by solar consumers, prompting President Asif Ali Zardari to intervene. The President accepted the appeal related to the tax and referred the case back to the Federal Tax Ombudsman (FTO) for a fresh, detailed examination.

The tax was originally enforced after all electricity distribution companies jointly challenged an earlier ruling by the FTO. Their appeal led to the imposition of GST on solar users, a move that drew widespread criticism from consumers who said the added cost placed an undue financial burden on households already struggling with high electricity prices.

The suspension of GST, coupled with the recent price reductions, is likely to make solar energy more accessible to consumers nationwide.