LAHORE:
The recent decision of the Government to reduce the repurchase rate for excess solar energy from RS27 to RS10 per unit has caused a generalized concern throughout the Pakistan solar energy sector, significantly cushioning the interest of the consumer and slowing down the rhythm of new facilities.
The interested parties of the industry, including importers and suppliers of the solar system, warn that the lack of a clear and consistent net measurement policy has eroded market confidence.
Traditionally, the solar system demands its maximum point before the summer, since homes and companies prepare for the increase in energy costs.
This year, however, it has reached the trend, and many companies report slow sales despite record prices for solar equipment.
Speaking to the Express PAkGazette, Rean Adnan Qureshi, the CEO of a solar energy company, said that the increase in expected seasonal demand has not materialized.
“Every year, we see a strong increase in demand as summer is approaching. This time, uncertainty about net measurement has made consumers doubt,” he explained. Qureshi pointed out that the dynamics of the global market, especially a surplus of production in China, has significantly reduced the costs of solar panels, creating favorable conditions for buyers.
“Solar systems are more affordable than ever. But due to political ambiguity, people are reluctant to invest,” he added.
Currently, solar grade to brand panels have a price between RS100 and RS120 per watt, below RS160-165 only a few years ago. Market data shows that a 5 kilowatt system (KW) now costs around RS600,000, while a 10 kW configuration has a price of RS1.15 million.
The largest 15KW and 20KW systems cost around RS1.4 million and RS1.8 million, respectively. Muhammad Hanif, another importer of solar teams, confirmed the continuous fall of prices, with costs that fell in RS1 to RS3 per watt in recent weeks. However, he noticed a change in consumer behavior.
“There is a growing interest in hybrid solar systems with battery storage. People prefer to store energy for personal use instead of returning it to the new reduced rate,” said Hanif.
Battery sales have seen a remarkable increase as more users pursue self -sufficiency. “The RS10 repurchase rate per unit simply does not justify the sale power of the network,” he added.
The industrial sector also faces the winds against, since the National Electric Power Regulatory Authority (NEPRA) delays approvals for energy purchase agreements, adding more uncertainty to the market.
With the stakeholders that smile the alarm, the solar energy industry is urging the Government to provide clarity and transparency in net measurement regulations. Without a stable and supportive framework, experts warn, the significant progress made in the adoption of renewable energy could begin to unravel.
According to the Global Electricity Review 2025 by the group of Energy experts based in the United Kingdom, Ember, Pakistan imported a record of 17 Gigawatts (GW) of solar panels in 2024, more than double the previous year, placing it among the main solar markets of the world.
