The Public Utilities Commission of Sri Lanka (PUCSL) has decided to remove the legal barriers for consumers who wish to enter into electricity generation based on solar power. Therefore, it has been proposed to exempt the electricity consumers, who generate electricity in small scale through rooftop solar power plants, from obtaining a licence to sell electricity to the national grid. According to the Sri Lanka Electricity Act, as amended, no party is allowed to generate and sell electricity to the national grid without a licence granted by the PUCSL.
But, with the new decision, any electricity consumer could install a solar system at his or her residence/ premises and generate and sell the electricity based on the agreement, which can be signed between the said consumer and corresponding licensee (the Ceylon Electricity Board (CEB) or Lanka Electricity Co. (Pvt.) Ltd (LECO)). All such parties will be exempted from the requirement of obtaining a generation licence.