Solar panel prices drop to record lows in Pakistan

[Mr X]

What is the approximate cost of a complete 5KW home solar power system in Pakistan? It includes solar panels, energy storage system, wiring and control system, installation cost.

Price in China: 40,000-60,000 RMB. You convert the currency yourself.
All surplus electricity from home solar is recovered by the National Grid. The price of electricity recovery varies a little from place to place, but the difference with local electricity prices is very small.

The prices are dropping quickly but I know someone who got 5k Solar panel + batteries + control system for about 1.5 million rupees.. that is about $5500

 

[hydrabadi_arab]

The prices are dropping quickly but I know someone who got 5k Solar panel + batteries + control system for about 1.5 million rupees.. that is about $5500

My cousin got 5KW solar system installed for $900 without storage system.

Though it depend on when he installed it. Just a year ago prices of solar panel was more then double then today.

 

[Michael]

Pakistan most corrupt person is in President Post and most corrupt group/family is in PM and CM post so what you expect. Whole establishment is bunch of corrupt people. So not much hope their. Only hope we have is some external power forced these corrupt people to do some good like china or IMF or US. like in case of Solar, Its Chinese which is the driving force behind this solar change. Trust me Pakistan is one of the richest country in the world, it's just corruption and bad management which is stopping Pakistan to develop and behind all these miseries.

Corruption of government officials exists in any country. No country is completely immune to it. It cannot be solved simply by legal means and requires a lot of political wisdom. As for your comment about presidential corruption, I think that is your personal opinion.
My English is terrible, and machine translation cannot express my views with complete accuracy. So, I can't do any more discussion.


@silicon0000 @hydrabadi_arab @Mr X
Although Pakistani home solar systems originated in China, it is less expensive than China. This is a normal thing. There are two main factors that contribute to this phenomenon.
1. The market for home solar systems in China is very small. Electricity is very cheap in China. The vast majority of urban residents live in buildings, they do not have the conditions for installation.
2, Labor costs in China are much higher than those in Pakistan. In terms of installation cost of home solar system, the price in China is about 3500~5000 RMB. This does not include its labor cost in the manufacturing process.
Constrained by these factors, the utilization of solar home systems in China is very low.

About the Chinese electricity price
China implements dynamic electricity prices. Prices are completely different during peak or trough periods. In my city, the price varies between RMB 0.15~0.56/KWh. It is controlled by the automatic power management system of the national grid. My house's monthly electricity bill varies between RMB 80~400, and when it is hot in summer and cold in winter, this difference is caused by the use of air conditioning. This fee is negligible compared to the income of the average Chinese.
State Grid will also often give some preferential measures. For example, if you recharge RMB100, you will actually get RMB200 for electricity.

 

[silicon0000]

Corruption of government officials exists in any country. No country is completely immune to it. It cannot be solved simply by legal means and requires a lot of political wisdom. As for your comment about presidential corruption, I think that is your personal opinion.
My English is terrible, and machine translation cannot express my views with complete accuracy. So, I can't do any more discussion.


@silicon0000 @hydrabadi_arab @Mr X
Although Pakistani home solar systems originated in China, it is less expensive than China. This is a normal thing. There are two main factors that contribute to this phenomenon.
1. The market for home solar systems in China is very small. Electricity is very cheap in China. The vast majority of urban residents live in buildings, they do not have the conditions for installation.
2, Labor costs in China are much higher than those in Pakistan. In terms of installation cost of home solar system, the price in China is about 3500~5000 RMB. This does not include its labor cost in the manufacturing process.
Constrained by these factors, the utilization of solar home systems in China is very low.

Well It's just matter of time if things goes the way it is going, within few years Pakistani Industries and Majority (>50%) of Homes (excluding buildings and small houses) will be on Solar.

 

[Mr X]

My cousin got 5KW solar system installed for $900 without storage system.

Though it depend on when he installed it. Just a year ago prices of solar panel was more then double then today.

The solar panels are not very costly. But 900usd is hard to believe… When you add a few batteries and the management system it will quickly raise the price. It might be cheaper than last year but not like 900usd only.

In Pakistani market, the electricity bill is so high that you recover the cost of home solar system within 2 years of investment.

 

[Mr X]

Corruption of government officials exists in any country. No country is completely immune to it. It cannot be solved simply by legal means and requires a lot of political wisdom. As for your comment about presidential corruption, I think that is your personal opinion.
My English is terrible, and machine translation cannot express my views with complete accuracy. So, I can't do any more discussion.


@silicon0000 @hydrabadi_arab @Mr X
Although Pakistani home solar systems originated in China, it is less expensive than China. This is a normal thing. There are two main factors that contribute to this phenomenon.
1. The market for home solar systems in China is very small. Electricity is very cheap in China. The vast majority of urban residents live in buildings, they do not have the conditions for installation.
2, Labor costs in China are much higher than those in Pakistan. In terms of installation cost of home solar system, the price in China is about 3500~5000 RMB. This does not include its labor cost in the manufacturing process.
Constrained by these factors, the utilization of solar home systems in China is very low.

About the Chinese electricity price
China implements dynamic electricity prices. Prices are completely different during peak or trough periods. In my city, the price varies between RMB 0.15~0.56/KWh. It is controlled by the automatic power management system of the national grid. My house's monthly electricity bill varies between RMB 80~400, and when it is hot in summer and cold in winter, this difference is caused by the use of air conditioning. This fee is negligible compared to the income of the average Chinese.

It is not cheaper than China in my opinion, it is similarly priced.

The reason being Pakistan offers 0% import duty on solar system and China being the neighbour, it is very easy to import from China.

The importers from Pakistan will purchase in bulk and can offer cheaper price than the average price paid by a Chinese household but China will remain cheaper for large orders within China.

You see Lahore from Xianjiang is closer than Beijing or Shanghai by road and when you have 0% import duty, it is cheaper to import to large cities across Pakistan.

 

[Michael]

It is not cheaper than China in my opinion, it is similarly priced.

The reason being Pakistan offers 0% import duty on solar system and China being the neighbour, it is very easy to import from China.

The importers from Pakistan will purchase in bulk and can offer cheaper price than the average price paid by a Chinese household but China will remain cheaper for large orders within China.

You see Lahore from Xianjiang is closer than Beijing or Shanghai by road and when you have 0% import duty, it is cheaper to import to large cities across Pakistan.

I certainly know the distance between China and Pakistan. Without tariffs, Chinese products are certainly less expensive in the Pakistani market than in the Chinese market.

More importantly, Pakistan should take advantage of this opportunity to transfer some production work to Pakistan locally as soon as possible. This requires Pakistani government officials to step in and do some guiding work.

China now has skyrocketing labor costs and increasingly strict environmental protection. The government is putting many industries under reform. There are three ways for production-oriented companies to choose:
1. Invest money in reforms to shift to smart manufacturing companies;
2, Direct closure;
3. transfer to other countries.
Many companies have enough orders and technology, but they can no longer survive in China. If the Pakistani government fails to seize this opportunity, these companies will move to other countries.

So, friends of Pakistan should not worry, this is China's initiative to release production capacity. If you miss this opportunity, it will be hard to get another chance.

 

[Mr X]

I certainly know the distance between China and Pakistan. Without tariffs, Chinese products are certainly less expensive in the Pakistani market than in the Chinese market.

More importantly, Pakistan should take advantage of this opportunity to transfer some production work to Pakistan locally as soon as possible. This requires Pakistani government officials to step in and do some guiding work.

China now has skyrocketing labor costs and increasingly strict environmental protection. The government is putting many industries under reform. There are three ways for production-oriented companies to choose:
1. Invest money in reforms to shift to smart manufacturing companies;
2, Direct closure;
3. transfer to other countries.
Many companies have enough orders and technology, but they can no longer survive in China. If the Pakistani government fails to seize this opportunity, these companies will move to other countries.

So, friends of Pakistan should not worry, this is China's initiative to release production capacity. If you miss this opportunity, it will be hard to get another chance.

I agree with you and we hear a lot of talks from the government but no work in practical.

Most Pakistanis focus on importing from China and selling directly into Pakistani markets without pressing a button or modifying anything. They don’t buy half completed or raw products but fully finished and sealed, ready to be sold in Pakistani markets.

Also the convenience of importing from China is so much that many importers visit China, orders in bulk and then assign a company for collection. They don’t even know how but after a couple of weeks, the shipment is delivered to their preferred choice of warehouse in Lahore, Islamabad or big cities of Pakistan.

Also the import from China is much higher than on the paper as they either undervalue everything or have connections with the border control.so their goods are never inspected or valued properly for as long as it’s not containing explosives.

I once decided to import Generators from China when I was in Pakistan for 1 year. I inquired about the import cost and legally the cost would be 30-40% of the actual price but there were dealers who said that buy anything from China and pay us 5% and get it delivered anywhere in Pakistan and don’t worry about the import duty and all…

 

[Michael]

I agree with you and we hear a lot of talks from the government but no work in practical.

Most Pakistanis focus on importing from China and selling directly into Pakistani markets without pressing a button or modifying anything. They don’t buy half completed or raw products but fully finished and sealed, ready to be sold in Pakistani markets.

Also the convenience of importing from China is so much that many importers visit China, orders in bulk and then assign a company for collection. They don’t even know how but after a couple of weeks, the shipment is delivered to their preferred choice of warehouse in Lahore, Islamabad or big cities of Pakistan.

Also the import from China is much higher than on the paper as they either undervalue everything or have connections with the border control.so their goods are never inspected or valued properly for as long as it’s not containing explosives.

I once decided to import Generators from China when I was in Pakistan for 1 year. I inquired about the import cost and legally the cost would be 30-40% of the actual price but there were dealers who said that buy anything from China and pay us 5% and get it delivered anywhere in Pakistan and don’t worry about the import duty and all…

This kind of industrial transfer requires government intervention.
1. Industrial chain planning. It is necessary for the government to arrange the relevant factories in the adjacent areas, which will minimize the logistics and transportation costs and improve the production efficiency.
2, Ensure that production resources are guaranteed. A training school for skilled workers can be established nearby to ensure the number of skilled workers. Electricity guarantee, land guarantee, water resource guarantee ...........
Chinese entrepreneurs have capital, technology and orders. For entrepreneurs, the only factor they consider is the investment environment.
It is very unlikely that Pakistani entrepreneurs will receive this capacity independently, they do not have enough human resources and they need to cooperate with Chinese entrepreneurs. Chinese entrepreneurs investing overseas usually do so in the mode of cooperation with locals, who do not want to get too involved in the various local relationships to deal with affairs.

 

[hydrabadi_arab]

The solar panels are not very costly. But 900usd is hard to believe… When you add a few batteries and the management system it will quickly raise the price. It might be cheaper than last year but not like 900usd only.

In Pakistani market, the electricity bill is so high that you recover the cost of home solar system within 2 years of investment.

Not hard to believe when 5KW solar panels cost like Rs150k which is $540. What do you think rest cost? Installation cost are cheap in Pakistan.

 

[Fatman17]

Solar panel prices in Pakistan have plummeted to new record lows, with prices dropping to Rs.28 per watt in Karachi’s market, ARY News reported on Saturday.

This massive decrease follows a steady decrease from Rs.30 to Rs.32 per watt last month.

Earlier this year, prices hovered around Rs.39 to Rs.40 per watt in April, marking a significant drop compared to Rs.80 per watt two years ago.

The decline in prices is attributed to increased supply and growing interest in solar energy.

Federal Minister for Energy Owais Laghari noted that 8,000 MW of solar panels were imported into Pakistan in just one year.

Additionally, plans to establish solar inverter plants locally aim to reduce foreign exchange costs and further promote solar energy in the country.

Yes but solar batteries and inverters remain expensive as ever. And don't forget the 25% sales tax. Cheers

 

[Michael]

The 5KW PV system generates approximately 30KWh of electricity per day, depending on the product technology and the weather. You can account for the economic data yourself.

 

[silicon0000]

Not hard to believe when 5KW solar panels cost like Rs150k which is $540. What do you think rest cost? Installation cost are cheap in Pakistan.

Well a Solar system roughly cost 25% Solar sheets, 25% Inverter, 30-35% Battery and 15-20% in installation.

 

[hydrabadi_arab]

Well a Solar system roughly cost 25% Solar sheets, 25% Inverter, 30-35% Battery and 15-20% in installation.

Inverter was $300 and installation $150. Labour is cheap in Pakistan. The max is $1000 for 5KW system without batteries right now.

 

[silicon0000]

Inverter was $300 and installation $150. Labour is cheap in Pakistan. The max is $1000 for 5KW system without batteries right now.

Installation includes wiring and solar sheet supporting system which cost mainly due to high metal cost (Copper wire and Angle Iron for Solar Sheets).

Dear which inverter is that? please share info. My relative got one in this price for 2 KW system last month. Please share link of 5KW solar inverter which cost around 80-85 thousand rupees in Pakistan.