Solar Industry urges Govt. to halt unfair tariff reductions

Monday, 10 March 2025 05:26 - - {{hitsCtrl.values.hits}}

Solar Industry Association President Javid Kamil addressing the press briefing. Solar Industry Association Secretary S. Sanjeevan and Solar Industry Association Treasurer Ranila Withanage are also present – Pix by Lasantha Kumara

Calls to consider broader economic and social benefits in rooftop solar tariff revisions
Wants stable and predictable policy framework
Requests transparent and independent investigation into recent power failures
Highlights need for rooftop solar industry to be recognised as critical component in Sri Lanka’s renewable energy strategy

By Divya Thotawatte

The Solar Industries Association (SIA) last week urged the Government to halt further rooftop solar tariffs reductions, warning that such a move could jeopardise the industry’s growth and hinder Sri Lanka’s transition to renewable energy.

At a media briefing held last week, the industry representatives highlighted severe consequences of tariff reductions, with SIA President Javid Kamil explaining that the industry would not be able to survive with unstable and unpredictable policies. “What we are urging the Government is to have a just and fair policy that does not change regularly because this industry brings in a lot of funding as well as growth. Six months ago, when they had a tariff of Rs. 37, they brought it down by 40%, to Rs. 27. Now we are looking at a further drop that will completely stall the industry.”

He explained that the Sri Lankan rooftop solar Industry, which supported over 40,000 employees and 1,000 SMEs, had grown significantly over the past few years, playing a crucial role in the country’s renewable energy goals. However, the recent and proposed tariff cuts have shaken investor confidence and put 100,000 solar projects, many owned by middle-class homeowners, at risk, putting their investments and energy savings in jeopardy.

“Right now, we are in a pivotal point where they will be another tariff revision after just six months. It will undermine the investors’ confidence because any market needs stability,” Kamil said.

He explained that the industry contributed 600MW to the national grid, making up 5% of Sri Lanka’s total energy demand. Yet, the rooftop solar industry had not received the recognition it deserved, despite being a cost-effective, locally funded energy solution.

With regard to this issue, SIA called for a stable and predictable policy framework that ensured fair compensation for solar energy producers. Kamil argued that the Government should not treat tariff adjustments as mere mathematical formulas but rather consider the broader economic and social benefits.

“So we are calling for a stable and predictable policy framework. This is a 20-year investment. If you’re doing a policy framework and adjustments need to be made, do it annually and tell when it is happening. Then, it won’t be so haphazard.”

SIA also dismissed the claims that the rooftop solar industry was responsible for financial losses in the power sector, urging the Government to conduct a transparent independent investigation into the recent power failure.

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