Solar panel and battery prices have started falling rapidly after reports of a major sales tax increase in the federal budget turned out to be false, leaving many consumers frustrated after paying inflated prices.
Market sources say importers and retailers earned millions of rupees within days by capitalizing on rumors that the sales tax on solar systems would be raised from 11% to 18%.
Ahead of the federal budget, reports circulated that the government planned to increase the sales tax on solar systems from 11% to 18%.
The reports triggered panic buying across the country, with consumers rushing to purchase solar systems before the expected tax increase took effect.
As demand surged, long queues formed at solar markets as buyers sought to avoid anticipated price hikes.
Panel and battery prices surged
According to market sources, importers, wholesalers, and retailers significantly increased prices before the budget announcement.
The price of solar panels was reportedly raised by Rs5,000 to Rs7,000, while lithium battery prices increased by between Rs25,000 and Rs200,000.
Industry sources allege that traders took advantage of the uncertainty surrounding the budget to boost profits within a short period.
Budget brings no tax increase
However, the federal budget did not include any increase in the sales tax on solar systems. Once it became clear that no additional tax would be imposed, solar panel and battery prices began to decline rapidly.
Solar importers said the rumors proved false and accused a market mafia of exploiting consumers through speculation and misinformation.
“The mafia that made things expensive on rumors has robbed the public,” industry representatives said.
Prices expected to fall further
Market sources expect solar panel prices to decline by around Rs2,000 in the coming days.
A further reduction of up to Rs7,000 is also expected within the next two weeks as the market adjusts to actual demand and tax conditions.
Lithium battery prices are also likely to fall significantly, with expected reductions ranging from Rs25,000 to Rs200,000.
According to market observers, consumers suffered financial losses as a result of panic buying, overcrowding in the market, and a lack of effective checks and balances.
Many buyers purchased solar systems at inflated rates based on fears of a tax increase that never materialized.
Industry representatives argue that stronger oversight is needed to prevent similar situations in the future and protect consumers from price manipulation driven by unverified reports.
Market adjusts after budget clarity
With the budget confirming that the sales tax on solar systems remains unchanged, prices are gradually returning to normal levels.
Traders and market analysts expect further corrections in the coming days, potentially providing relief to consumers looking to invest in solar energy solutions.
