Federal government has announced an 18% sales tax on solar panels in the Budget 2025–26, leading to a sharp 20% increase in solar panel prices across the market.
As electricity costs continue to burden consumers, many were turning to solar energy as a more affordable alternative. However, the sudden price hike has dealt a major blow to those plans.
Consumers say that post-budget, the cost of installing a solar system has become unaffordable. “A system that used to cost Rs 350,000 just a few months ago now costs between Rs 550,000 to Rs 600,000. It’s become so expensive that paying electricity bills seems like a better option,” said one frustrated buyer.
Retailers also voiced concerns. One shopkeeper said, “Those who already have stock are either not selling or demanding inflated prices. We are forced to buy at high rates and sell at higher ones just to cover our costs.”
For example, solar panels that were previously available at Rs 17,000 are now being sold for Rs 20,000 in the market.
The tax has sparked backlash from both consumers and sellers, with many calling for its immediate reversal to encourage clean energy adoption and reduce dependence on the national grid.
