Solar industry calls for new tariff scheme to light up investors

Solar Industries Association Sri Lanka Secretary Lakmal Fernando addressing the media while (from left): Solar Industries Association Sri Lanka President Kushan Jayasuriya, Solar Industries Association Sri Lanka Vice President Prakrama Jayasinghe and Solar Industries Association Sri Lanka Ex-Co Member Prabath Wickramasinghe look on – Pic by Upul Abayasekara 

• Projects $ 3 b in savings over three years with right incentive
• Alleges existing investors in the dark, as CEB halts payments

By Darshana Abayasingha

The Solar Industries Association yesterday called on the Government to introduce a justifiable tariff scheme for solar powered schemes, as buying prices must improve to attract new investors and consumers.

The existing Net Plus system where the CEB pays for the total electricity generated with roof-mounted solar systems is not moving forward, the Association says, as the existing price system is not representative whilst the CEB has also ceased payments.

Solar Industries Association Secretary Lakmal Fernando told the media yesterday up to 40,000 households have roof-mounted solar systems, and the industry hopes it could garner the necessary support to connect 300,000 new households every year with a 3-KW system.

 Fernando says this would save the Government $ 3 billion in energy expenditure over the next three years, which amounts to 6% of the country’s national debt.

He noted the ‘Soorya Bala Sangraamaya’ program envisaged to add 1,000 MW of solar energy to the grid by 2025 through roof-mounted solar systems. The country has up to date added about 600 MW via such systems and called for an accelerated version of the program to be deployed to meet the economic and energy challenges faced by the nation.

“The current numbers are not moving forward, so we need a new tariff scheme and this is crucial. Consumers should become self-sufficient and in charge of the payment model, and we have proposed a new system to the Energy Minister and awaiting feedback. There has to be justifiable returns to investors, and the charges could be relooked at once the prevailing situation normalises. At 2.5% annual growth in connections, we had hoped to reach Rs. 36 per unit to be paid by the CEB. But that number is not moving due to various reasons. If we don’t change our energy mix, the CEB will once again increase prices next year, as it will continue to incur losses given the global environment,” Fernando added.

The Solar Industries Association said that it hopes to contribute up to 3 GW of power to the national grid by 2025, and urged the Government to devise a plan to encourage households to take up solar powered systems. Fernando pointed out 65% of Sri Lanka’s energy generation is dependent on fossil fuels at a time the price of a ton of coal has exceeded $ 400 from a rate of just $ 50 a few years ago. He said sustained focus on fossil fuels for energy generation will contribute further to the country’s forex crisis unless we change the energy mix.

Aggressive adoption of solar-based systems will enhance energy security and reduce dependence on global markets for energy with zero cost to the Government as expenditure will be borne by consumers. Recognising the high costs involved with roof-mounted solar systems, the Association revealed it had made representations to the Government for credit facilities and other incentives to source the necessary material and servicing. It added that a 2 MW solar farm could be installed within just four months to provide speedy solutions to the country’s energy needs.