Energy prices in Pakistan have been on the rise, and many homeowners and businesses are looking for alternative solutions. One way to reduce reliance on the national grid is to turn to solar power. And why not? It has incredible solar potential!
Among many types of solar systems, a 20kW is one of the largest residential systems meant for larger homes and medium-sized businesses. But how much does it cost? What’s the price of a 20kW solar system in Pakistan, you may ask?
Let’s discuss that in our today’s episode.
Specifically, we will talk about the following:
- How much does a 20kW solar system cost in Pakistan?
- The average price of a 20kW on-grid solar system in Pakistan
- The average price of a 20kW hybrid solar system in Pakistan
- The average price of a 20kW off-grid solar system in Pakistan
- Factors that affect the cost of 20kW solar systems
- The payback period of 20kW solar systems
- How many panels do you need for a 20kW solar system?
How Much Does a 20kW Solar System Cost in Pakistan?
On average, a 20kW solar system in Pakistan can cost anywhere between PKR 3,100,000 to PKR 4,200,000, depending on the type of solar system and the brands you choose. This enormous price difference is due to the difference in the components required by different systems. For example, on-grid systems do not require batteries; thus, they are the most affordable of all.
Other than that, brands also differ in prices. A 20kW inverter of one brand would cost PKR 550,000, but another brand would go all the way to PKR 900,000.
Let’s talk about the prices of each type of 20kW system individually.
Disclaimer: The prices mentioned here are of January 2024. As you may be aware of, the prices of solar panels are prone to changing market conditions. At the moment, the prices are low; as the prices of panels change, the following prices may change.
Average Price of 20kW On-Grid Solar System in Pakistan
An on-grid solar system, also known as a grid-tied system, is directly connected to the national electricity grid. Due to the absence of batteries, on-grid systems are the most affordable residential solar solution. The average price of a 20kW on-grid solar system in Pakistan ranges from PKR 3,000,000 to PKR 3,300,000. You could also get a system in less than the stated amount – all depends upon the timings and the market conditions. On-grid systems are ideal for areas with fewer load-shedding hours.
One of the primary benefits of on-grid systems is net metering. Through net metering, you can offset your electricity bill and bring it all the way to zero. Some of our clients have even received bills in negative, meaning that your electricity company would pay you.
Average Price of 20kW Hybrid Solar System in Pakistan
A hybrid solar system is connected to the grid but also includes battery backup to store excess energy during power outages. The additional cost of batteries makes the average price of a 20kW hybrid solar system higher, ranging from PKR 3,450,000 to PKR 3,600,000.
You can utilize the benefits of net metering with a hybrid system as well. If load shedding is frequent in your area, this is the system you should choose.
Average Price of 20kW Off-Grid Solar System in Pakistan
An off-grid solar system operates standalone without being connected to the grid. Thus, it requires a substantial battery bank to store energy for use during periods of no sunlight. The higher battery capacity results in an average cost of PKR 3,600,000 to PKR 4,200,000 for a 20kW off-grid solar system. The battery bank depends on your need; the more batteries you install, the higher the price will be.
Also, batteries can come in various chemistries. Lead-acid batteries are affordable; lithium batteries, on the other hand, are quite expensive. Read more about the difference between lead-acid and lithium batteries.
While this is the most expensive option, it is ideal for remote areas with limited grid access.
A solar system for everyone.
We’re customer-centric; we will find you a solution within your budget. Whatever your project size, you can always save with Ecospark Solar.
Factors Affecting the Cost of 20kW Solar Systems
Not all 20kW solar systems cost the same. Several factors influence the cost of a solar system, and understanding of which is essential for making an informed decision. Let’s discuss each factor one by one.
Type of System
As already mentioned, the type of solar system you choose significantly impacts the cost. On-grid systems are the most affordable, as they do not feature batteries. Conversely, hybrid and off-grid systems will incur higher costs due to the inclusion of batteries. The more batteries you install, the more expensive your system will get.
Quality of Components
The quality of solar panels, inverters, and other components also plays a role in determining the overall cost of your 20kW solar system. While higher-quality components may cost more initially, they offer better efficiency and a longer lifespan, resulting in long-term savings. Since solar is not a small investment, we recommend installing tier-1 products to maximize your savings over the course of your system’s lifespan.
Related Read: Buyer’s Guide: Solar Panel Price in Pakistan (2023) and How to Choose the Best?
Installation Location
The location of the installation affects the efficiency of the solar system. Areas with higher sunlight exposure will require fewer panels to generate the desired electricity, leading to lower costs. But if the sunlight is low, you will need more panels to generate the same amount of electricity; hence the costs will be higher.
If you want to know how the energy output of solar systems works, read our guide to calculating how much electricity solar panels produce.
Type of Roof and Installation Complexity
The complexity of the solar installation, such as complicated roofs or additional mounting arrangements, can increase the installation cost. If the roof is flat, like our roofs are in Pakistan, you will need separate mounting structures for introducing the tilt angle and direction in solar panels. But if your roof is already slanted, your costs will be comparatively lower.
Similarly, if you need panels on the ground, you will have to make additional arrangements for mounting, which may incur more.
Net Metering Costs
For on-grid and hybrid systems, net metering allows users to sell excess electricity back to the grid. While net metering can offset initial costs, there is a net metering fee that NEPRA charges for granting a generation license. You have to consider that as well.
Besides the factors mentioned above, there could also be other factors, such as government taxes or exemptions. Last year, there were taxes, and the costs were really high!
Payback Period of a 20kW Solar System
Solar payback period refers to the time it takes for a solar system to recover its initial cost through savings on electricity bills or energy credits through net metering. Factors such as system cost, electricity rates, net metering tariff, solar system performance, and energy consumption influence the payback period. The shorter the payback period, the more financially beneficial the solar investment is.
But what’s the payback period of a 20kW solar system? Let’s illustrate the payback period through an example.
Consider a 20kW hybrid solar system costing PKR 3,200,000 in Islamabad. A 20kW system can generate around 2500-3000 units a month, meaning that at the existing electricity rates, it can offset around Rs. 60,000 of your electricity consumption cost per month—it doesn’t factor in FPA, etc., that varies. Annually, the savings become PKR 720,000.
The payback period for this system will be 3,200,000/720,000 ~ 4.4 years. This means that by the fifth year, your 20kW solar system will have earned you its initial cost. From then onwards, it is all yours—FREE!
Read more about how to calculate the payback period of a solar system.
Frequently Asked Questions about 20kW Solar Systems in Pakistan
How many units does a 20kW solar system generate?
On average, a 20kW solar system in Pakistan can generate around 80-100 kWh of electricity per day—or 2,500 to 3000 units a month. The energy output depends on factors like sunlight hours, panel efficiency, and temperature.
If you want more details, read our in-depth article on the energy output of a 20kW solar system in different cities of Pakistan.
What’s the lifespan of a 20kW solar system?
High-quality solar panels can last anywhere from 25 to 30 years, while inverters might need replacement after 10-15 years with proper maintenance. Some inverters may need to be changed earlier. Install robust solar panels so you do not have to replace or repair them more often.
How many panels are needed for a 20kW solar system?
The number of panels required depends on the wattage of the individual panels. There are a variety of solar panels available in different sizes; if you go for 450W panels, you will need approx. 45 panels. If you opt for higher-wattage panels, the number required will decrease accordingly. Go for higher-wattage panels to optimize the energy in a limited roof space.
The Price of a 20kW Solar Panel System in Pakistan: Concluding Thoughts
Installing a 20kW solar system can be a strategic move for homeowners and businesses seeking to combat rising energy costs in Pakistan. The cost of the system varies depending on factors like system type, component quality, installation location, and government policies. At the moment, a 20kW solar system can cost you anywhere between 3,000,000 to 4,300,000—depending upon the type of system and brands you choose.
Remember to thoroughly research and consult solar experts to make an informed decision about your 20kW solar system, taking into account your specific requirements and budget.
We hope this article has provided valuable insights into the cost, benefits, and considerations associated with a 20kW solar system in Pakistan. Embrace solar energy and pave the way towards a brighter and cleaner future.
If you want to go solar, we strongly recommend partnering with Ecospark Solar! We are experts in what we do and make things all about you and not us! “We succeed only if you succeed” is what keeps us going.
