Solar panel prices to increase in Pakistan: Here’s why

LAHORE: After a long period of declining solar panel prices, market experts are now predicting that the prices may either stabilize or even increase in the coming months as import volumes decline.

A sharp decline in solar module prices over the past few months fueled a surge in imports, as buyers rushed to meet growing demand for renewable energy solutions.

However, recent data shows the exact opposite of this trend. In September 2024, Pakistan’s solar panel imports fell to 1,010MW, down 63% from the peak imports of 2,762MW recorded in April. The decline continues, with August imports at 1,121 MW, pointing to a steady downward trend.

The major reason for the sharp decline in imports is shipment delays and other logistical challenges. As a result, the current stock of solar panels is mainly left over from previous months. While prices are not expected to rise immediately, supply chain issues hint at the possibility of price increases as inventory levels shrink.

Earlier this year, a dramatic drop in solar panel prices led to increased imports by domestic, commercial and industrial customers, who saw solar power as a buffer against rising electricity prices. However, with imports falling, market insiders have warned that the current supply may only be enough for the next few months. A tightening of supply could result in longer wait times for new shipments if demand increases or if shipments are further delayed.

According to industry experts, the prices have now stabilized after reaching their lowest levels. Prices are unlikely to fall further, especially given the dwindling stock availability. Consumers who wait for additional price reductions may end up making future purchases more expensive or delayed as a result of inventory depletion.

Experts are advising potential buyers to act now, as current prices and inventory offer a great investment opportunity. The solar panel market is expected to remain stable for now, but supply may be disrupted if demand increases due to reduced supply.

Imports of solar panels have surged amid rising electricity prices and rising demand for cheap, renewable energy amid energy shortages. A global drop in solar panel prices made the technology more accessible, leading to a shift towards solar energy in Pakistan. However, the recent slowdown in imports has raised concerns about the future availability of solar panels in the market, which is likely to push up prices as supplies dwindle.