• No impact to rooftop solar: Energy Ministry

In light of reports on proposals to reduce the tariff paid to rooftop solar generators, the Solar Industries Association (SIA) is warning of the risk of a potential electricity tariff hike. 

If the reduced tariff discourages the rooftop solar industry, the association notes that it would result in oil and thermal sources having to bridge the gap.

However, a highly-placed source at the Ministry of Energy told The Sunday Morning yesterday (29) that the proposed reduction of tariff had been made after considering grid stability and costs in the face of increased supply from the rooftop solar sector.

While stating that the proposals were still under discussion in Cabinet and that no decisions had been made, the source claimed that the reduction of tariffs had not targeted household rooftop solar sources but businesses that carried it out on a larger scale.

The source added that the proposal to reduce the tariff was to be coupled with the proposal to introduce tariffs for solar power with batteries, elaborating that when the battery system was introduced, the increased and stabilised supply would bring in a balance to revenue.

According to the source, the current supply of rooftop solar energy is higher than the target and it is difficult to buy it at a higher rate and sell at a lower rate.

The source further said that the aim of this plan was to encourage large-scale rooftop solar electricity generators to get the battery and stabilise their supply.

It was reported that a promotional tariff is being proposed for the Ceylon Electricity Board (CEB) for solar power with batteries, where electricity would be supplied during the night-time peak.

In a letter to Treasury Secretary and Ministry of Finance, Planning, and Economic Development Secretary Mahinda Siriwardana, the SIA has raised strong objections to the proposed reduction in rooftop solar feed-in tariffs.

According to the SIA, the proposed tariff cuts from Rs. 27 and Rs. 23 to Rs. 19 and Rs. 14 in different supply thresholds will put businesses and livelihoods in jeopardy.

Speaking to The Sunday Morning, SIA President Javid Kamil questioned the basis of such a reduction in tariffs, claiming that not much had changed since the last tariff reduction.

“It has only been six months since the last tariff reduction. But the dollar rate is still the same and the interest rate is still the same. What parameters have changed to bring in such a revision? If they drop the price and we do not give cheaper electricity, while diesel and thermal are bought at a higher price, that is going to drive up the consumer price,” he explained.

He stated that their plea to the President was to not change the current tariff, and in the event a revision was considered, to relook at the formulas for the tariff reduction calculation. He further added that if rooftop solar supply was discouraged, it would be detrimental to the 2030 renewable energy target.

However, it was reported that these new tariff rates would apply only to newly installed rooftop solar systems, while existing installations would continue to receive payments at the current rate.

When The Sunday Morning questioned CEB Acting General Manager Wasantha Edussuriya whether the board had shared any parameters for the tariff revision, he refused to comment on the matter. 

“The CEB can only implement something when it is sent our way after Cabinet approval. Therefore, until then, we cannot do anything,” he said.