Sri Lanka’s recent shift in policy regarding rooftop solar power generation has raised concerns among energy experts and civil society professionals, who argue that the new framework may discourage the expansion of renewable energy despite the country’s goal to increase its renewable energy share to 70% by 2030.

The Ministry of Energy announced that from September 11, 2026, new rooftop solar connections to the national grid will no longer be eligible for the Net Metering and Net Accounting schemes. These schemes, which allowed households to offset their electricity consumption with the power they generated or sell surplus energy to the grid at favorable rates, have been suspended for new consumers due to reported financial losses to the Ceylon Electricity Board (CEB).

Under the replacement Net Plus scheme, electricity generated by rooftop solar systems is fed directly into the national grid, and homeowners receive a fixed Feed-in Tariff set by the Public Utilities Commission of Sri Lanka (PUCSL). Consumers then pay separate bills for electricity consumption as regular customers, making generation and use independent financial entities. Net Plus contracts will be valid for up to 12 years.

Experts say the policy change could reduce incentives for home solar installations. M.R. Ranathunga, former CEB General Manager and electrical engineer, recommended retaining limited Net Metering or Net Accounting allowances alongside Net Plus to support sustainable electricity use, particularly for electric vehicle charging. He highlighted that under the current system, consumers face restrictions on generation capacity aligned with their consumption and often receive lower rates for power generated compared to the tariffs charged for electricity consumed during peak periods.

Ranathunga explained that as consumption exceeds 180 units per month—common among households charging electric vehicles—the cost per unit rises sharply, potentially making electricity bills unaffordable for solar users. He noted the cost to install a 5 kW solar system is approximately Rs. 1 million and that under the existing tariffs, recouping this investment could take about a decade, with limited financial benefit thereafter. He suggested interest-free loans and partial reinstatement of Net Metering or Net Accounting to bolster the sector.

Electrical engineer Ashoka Abeygunawardana also criticized the current framework, asserting that authorities pay premium rates for expensive electricity sources while undervaluing cheaper sources like rooftop solar. He views the dynamic as an emerging competition between private sector generators and consumers, given the government’s significant involvement in electricity procurement.

Responding to these concerns, Energy Minister Anura Karunathilake emphasized that the policy adjustments form part of a broader effort to update the electricity system and improve efficiency. He confirmed that new mechanisms are under development to better accommodate consumer interests within the Net Plus framework. The Minister cited the addition of 1,500 MW of new capacity since November 2024 and reaffirmed the government’s target to reduce electricity bills by 30% by 2030.

Karunathilake explained that daytime solar generation has inherently lower value due to the lack of energy storage, requiring higher-cost generation at night to meet demand—a cost ultimately borne by consumers. He stated the government is exploring measures to partially compensate households for daytime generation while managing nighttime consumption more effectively. A shift of electricity-intensive activities such as vehicle charging to daylight hours is also encouraged to balance the load.

At a recent briefing, Sri Lanka Sustainable Energy Authority Chairman Prof. Wijendra J. Bandara identified battery storage technology as a critical solution to integrate solar power more effectively. He announced government plans to eliminate taxes on batteries and enhance energy storage capacity, noting that a tender process for battery storage solutions linked to existing solar installations has been completed. Prof. Bandara affirmed the government’s commitment to advancing battery storage infrastructure as part of Sri Lanka’s renewable energy transition.

As Sri Lanka navigates the transition from traditional net metering to the Net Plus scheme, the balance between fostering renewable energy adoption, managing grid stability, and ensuring consumer affordability remains a complex challenge for policymakers and industry stakeholders.