The Public Utilities Commission of Sri Lanka (PUCSL) has decided to keep the payments for rooftop solar power plants unchanged, despite recent revisions to rates for renewable energy projects. According to a circular from Ceylon Electricity Board (CEB) General Manager Dr. Narendra Silva, the rate of Rs. 37 per unit for solar electricity, set in 2022, will continue. The circular, dated July 29, also updates the effective date for Rooftop Solar PV (RTSPV) schemes to October 25, 2022, while maintaining the existing terms.
This decision comes in response to concerns raised by the Renewable Energy Protectors’ Association (REPA) about the government’s plan to reduce tariff rates for new rooftop solar and other renewable energy projects starting July 1, 2024. The new tariffs, announced by Power and Energy Minister Kanchana Wijesekera, are based on a 2022 formula that factors in USD rates, interest rates, and other economic variables.
Minister Wijesekera stated on X: “The revised rates are intended to encourage the growth of rooftop solar projects and other renewable energy initiatives under 10 MW. This follows extensive stakeholder consultations and a detailed tariff committee report.”
The updated tariff rates for rooftop solar and other renewable energy projects are as follows:
Revised Rooftop Tariff (20-year flat rate):
- Up to 500 kW: Rs. 27.06 per kWh
- Over 500 kW: Rs. 23.18 per kWh
Revised Feeding Tariff (20-year flat rate):
- Solar: Rs. 25.48 per kWh
- Mini Hydro: Rs. 30.53 per kWh
- Wind: Rs. 29.86 per kWh
- Biomass: Rs. 52.77 per kWh
Despite these changes, the fixed tariffs for rooftop solar power plants will remain at Rs. 37 per unit for up to 500 kW, Rs. 34.50 for over 500 kW, and Rs. 34.50 for solar aggregation schemes. These rates will be fixed for 20 years once the Power Purchasing Agreement (PPA) is signed.
Industry stakeholders have welcomed the decision to maintain the rooftop solar tariffs, viewing it as a positive move that will support the energy sector’s growth and enhance investor confidence in sustainable energy projects. They stress the importance of continued government support to ensure the long-term stability of energy supplies essential for economic development.