Sri Lanka renewable energy policy changes

Sri Lanka has transitioned its rooftop solar policy from Net Metering and Net Accounting to a Net Plus system. Under this new arrangement, electricity generated by rooftop systems is treated separately from household consumption; owners receive a fixed payment for electricity fed into the grid while their own consumption is billed under standard tariffs.

Opposition Leader Sajith Premadasa has criticized the reform, alleging it undermines the solar sector and favors a “fuel and thermal power plant mafia.” He noted that solar tariffs for systems up to 500 kW have dropped from Rs 37 to approximately Rs 27 per unit. Conversely, the Ceylon Electricity Board has defended the move as a necessary step to reflect actual electricity costs and ease the financial burden on the national utility.

In response to evolving energy needs, President Anura Kumara Dissanayake has announced that the government is considering tax concessions for domestic rooftop solar users to encourage the adoption of battery storage systems. Currently, such concessions are limited to systems exceeding 1 megawatt, but the President indicated interest in extending benefits to smaller users, including those with capacities between 200 and 500 kilowatts. He noted a technical challenge in distinguishing solar-specific batteries from other types.

Regarding national capacity, the President reported that solar capacity has grown from 1,400 megawatts to approximately 2,900 megawatts over the last two years, with an additional 1,100 megawatts expected by next year. He also noted that land scarcity remains a challenge for ground-mounted projects, as one megawatt requires roughly three acres of land.