Lahore solar market grinds to halt on falling demand, rising panel costs
Muhammad Irfan, a salesman in the city’s solar equipment market, said a panel that sold for 16,000 rupees is now priced at 25,000 to 26,000 rupees, pointing to importers’ costs rather than retailer margins as the driving factor. Another salesman, Ahsan Khan, added that although global oil prices have eased somewhat, people simply lack capital at the moment, leaving business severely affected and no clients in the market.
The demand crunch is expected to worsen after the upcoming federal budget, which is likely to include higher taxes on imported solar components under pressure from the International Monetary Fund (IMF) to meet revenue targets. Industry traders warn that additional duties will further inflate system costs, pushing solar power beyond the reach of most middle-class buyers despite persistent grid electricity tariff hikes.
For now, Lahore’s solar retail market remains largely idle, with salesmen like Khan observing that neither inventory nor customers are moving. Without a rebound in disposable incomes or a reversal of proposed tax measures, a once-booming sector faces a prolonged slump.