Sri Lanka considers battery concessions for rooftop solar users

President Anura Kumara Dissanayake has announced that the Sri Lankan government is considering tax concessions for domestic rooftop solar users to promote the adoption of battery storage systems.

Currently, concessions are only available for battery storage systems with capacities exceeding 1 megawatt. Smaller systems remain subject to taxation. The President indicated that the government is exploring extending these benefits to domestic users, including those with capacities between 200 and 500 kilowatts. However, he noted a technical hurdle in distinguishing batteries designed specifically for solar storage from other battery types.

Addressing the Sri Lanka Economic and Investment Summit, the President also highlighted the growth of the nation's solar capacity. He stated that solar capacity has increased from 1,400 megawatts to approximately 2,900 megawatts over the last two years, with an additional 1,100 megawatts expected to be completed by next year. He noted that land scarcity makes ground-mounted solar projects challenging, as one megawatt requires roughly three acres of land.