Energy

Solar Power Producers Take Legal Action Against Tariff Cut


Renewable energy investors challenge government’s move to reduce rooftop solar payments without regulatory approval


A group of solar power producers has turned to the courts in protest over the government’s recent decision to reduce the tariff paid for electricity generated through rooftop solar panels. The move, they argue, undermines investor confidence in Sri Lanka’s renewable energy sector and violates established legal procedures.

The petition, filed before the Court of Appeal, challenges a Cabinet decision to lower the rate paid per unit of electricity by the Ceylon Electricity Board (CEB) and Lanka Electricity Company (LECO), effective from July 1, 2025. The case was heard before Justice K. Priyantha Fernando, who scheduled the matter for further hearing on August 4.

The petitioners are requesting a writ to invalidate the Cabinet’s directive, claiming that the decision was made arbitrarily and without following the legal framework outlined in the Electricity Act. Specifically, they point out that any changes to electricity tariffs require prior approval from the Public Utilities Commission of Sri Lanka (PUCSL)—a step they allege was ignored.

According to the petition, the PUCSL had issued a public notice warning against implementing the tariff reduction without its consent. Despite this, the government has reportedly moved forward with the revised rates, sparking concern among industry stakeholders.

The petitioners argue that the Cabinet’s unilateral action undermines both the legal process and the financial viability of solar power projects. They emphasize that a sudden cut in tariffs threatens the stability of existing rooftop solar investments and discourages future growth in the sector.

Senior attorney Manohara de Silva appeared on behalf of the petitioners, reinforcing the claim that the tariff revision lacks legal validity and urging the court to intervene.

This legal battle could have far-reaching implications for Sri Lanka’s clean energy transition, as it highlights the need for transparency, regulatory oversight, and consistency in policy-making.