Rooftop solar tariffs Solar Industry Association raises objection on proposed reduction

By Huzefa  Aliasger

The Solar Industry Association (SIA) has raised concerns over the proposed reduction in tariffs on rooftop solar panels, also mentioning that the decision could impact the entire solar market, according to a letter sent by it to the Finance Ministry.

A paper outlining these amendments has been submitted to the Cabinet of Ministers, following recommendations from the Ceylon Electricity Board (CEB). At present, solar energy producers receive Rs. 27 per unit of electricity supplied to the grid. For solar power systems generating less than 20 kilowatts, the proposed payment per unit is Rs.19, according to the Association.

Systems generating between 20 – 100 kilowatts will receive Rs.17 per unit, while systems generating between 100 – 500 kilowatts will receive Rs.15 per unit.

Meanwhile, former Minister Ali Sabry questioned the government’s motives behind the proposed reduction in tariffs in a post on Facebook, saying that it only helps those benefiting from crises and not the public.

He mentioned that 48 per cent of the electricity generated through renewable energy, such as large-hydro, solar, wind, and small-hydro, was received at a cost of Rs. 63.1 billion, which was only 13% of the total cost.

“This is not just an energy issue it’s a national issue, if you are truly national-minded you should stand with the people. You stand against vested interests that profit from crisis and dependency. Let’s make choices that empower the nation, not a few,” the former minister stated.

The SIA stated that the proposed tariff cuts jeopardise over 1,000 businesses and the livelihoods of more than 40,000 employees. The Association noted that rooftop solar contributed over 500 MW in 2024, making it the fastest-growing segment in renewable energy. The SIA also questioned the basis for the proposed tariff, citing discrepancies in plant load factor (PLF) and cost assumptions.