Sri Lanka will set the rate for rooftop solar electricity at 27 rupees per unit starting July 2024, as announced by Power Minister Kanchana Wijeskera. This rate is intended to ensure profitability for solar operators while considering recent global price changes and local economic conditions.
Previously, the rate was set at 37 rupees per unit during a period of high global solar panel prices, currency depreciation, and elevated interest rates. This rate was intended to support solar investments during economic uncertainties.
The revised rate of 27 rupees per unit, equivalent to approximately 8.85 US cents at an exchange rate of 305 rupees to the dollar, is higher than the 8.26 US cents rate offered to wind projects by India’s Adani group.
Minister Wijeskera noted that the adjustment reflects current economic conditions, including reduced solar panel costs, a stronger rupee, and lower interest rates. The new rate will apply only to new rooftop solar projects, while existing contracts will retain the higher rates.
Despite the change, the government aims to maintain interest in rooftop solar, with a target of 150 MW of capacity annually and 142 MW already connected this year. The updated pricing structure is designed to balance profitability for solar operators and manage future generation costs for the Ceylon Electricity Board (CEB).