By: Staff Writer
March 10, Colombo (LNW): The Solar Industries Association (SIA) has urged the Sri Lankan Government to halt further reductions in rooftop solar tariffs, warning that continued cuts could severely impact the sector and slow the country’s transition to renewable energy.
SIA representatives highlighted the negative effects of tariff reductions, with President Javid Kamil stressing that the industry cannot thrive under unpredictable and unstable policies.
“Our appeal to the Government is to implement a just and consistent policy. The industry brings significant investments and growth opportunities. Six months ago, tariffs were reduced from Rs. 37 to Rs. 27—a 40% drop. Now, another reduction is being considered, which could completely cripple the industry,” Kamil stated.
He further explained that Sri Lanka’s rooftop solar sector has expanded significantly in recent years, supporting over 40,000 workers and 1,000 small and medium-sized enterprises (SMEs). The industry plays a crucial role in achieving the country’s renewable energy goals.
However, recent and proposed tariff cuts have created uncertainty among investors and jeopardized around 100,000 solar projects, many owned by middle-class households relying on these investments for energy savings.
“We are at a crucial juncture. If another tariff revision happens within six months, it will damage investor confidence. A stable market is essential,” Kamil emphasized.
Currently, the rooftop solar industry contributes 600MW to Sri Lanka’s national grid, fulfilling approximately 5% of the country’s total energy demand. Despite its cost-effectiveness and reliance on local funding, the sector has not received the recognition it deserves.
SIA has called for a structured and predictable policy framework that ensures fair compensation for solar energy producers. Kamil argued that tariff adjustments should not be treated as mere calculations but should factor in the broader economic and social benefits.
“This is a long-term, 20-year investment. If policy changes are necessary, they should be made annually with clear timelines to avoid abrupt disruptions,” he suggested.
Additionally, SIA dismissed claims that the rooftop solar industry was causing financial losses in the power sector. The association urged the Government to conduct an independent and transparent investigation into the recent power failures.
Meanwhile, Power Minister Kumara Jayakody revealed that Sri Lanka is progressing with 1,358MW of solar power projects as part of its commitment to achieving 70% renewable energy by 2030. Several projects are underway, with some expected to be operational by 2026.
A 100MW solar plant, awarded to the Winforce consortium, is set to commence in 2026. Additional projects include 150MW and 100MW plants in Hambantota, a 50MW phase in Sampur, and two 100MW plants in Valachchenai. Other planned developments include a 60MW project in Embilipitiya, a 70MW plant in Puttalam, and a 108MW group plant in Moneragala.
With these developments, Sri Lanka aims to strengthen its renewable energy sector, but industry leaders stress that policy stability is essential for sustained growth.
