Prices of solar panels, inverters and lithium batteries have increased across Pakistan ahead of the federal Budget 2026-27, as market participants anticipate higher taxes on imported solar equipment.

Dealers and industry sources say prices have risen amid uncertainty over proposed changes in sales tax on solar imports, with speculation that the rate may be increased from 10% to as high as 18% in the upcoming budget.

Solar panel prices have climbed by up to Rs4,000 per unit even before any official policy announcement. Panels with capacities of 585W, 645W, and 720W are currently being sold in the range of Rs26,000 to Rs32,000, depending on specifications and brand.

Market traders report that many importers and wholesalers are withholding inventory, waiting for clarity on taxation measures. This supply tightening has contributed further to upward pressure on prices.

Solar inverters have also become more expensive, with increases of up to Rs20,000 reported in some segments. Small-scale solar systems, ranging from 1kW to 3kW, have seen price hikes of around Rs5,000 to Rs10,000.

Lithium battery demand has also strengthened, pushing prices higher by up to Rs20,000. A 5kW lithium battery is currently being sold at around Rs260,000 in local markets.

Dealers say the price trend is being driven mainly by pre-budget uncertainty and expectations of higher import taxation. They warn that any increase in duties or sales tax could further raise installation costs and slow the adoption of solar energy, despite strong demand driven by high electricity tariffs.