In recent years, Sri Lanka has made significant strides in incorporating Renewable Energy (RE) into its national grid, with rooftop solar playing a crucial role. However, concerns about grid instability, exacerbated by power blackouts and variable energy generation, have raised questions about the future of rooftop solar in the country.
These challenges have sparked speculation that the Government may take measures to discourage rooftop solar installations, potentially stalling the momentum of this clean energy revolution.
Sri Lanka’s renewable energy efforts date back several decades, with increasing emphasis on solar energy as the country aims to reduce its dependence on imported fossil fuels like coal and oil. A notable milestone in this effort was the launch of the ‘Soorya Bala Sangramaya’ (battle for solar energy) programme in 2016, which set ambitious targets to increase solar power’s share in the country’s energy mix.
The programme, which focused on rooftop solar installations, has been pivotal in advancing the country’s renewable energy agenda. The goal of the ‘Soorya Bala Sangramaya’ was to promote the installation of 100,000 rooftop solar systems across households, Government buildings, and private sector establishments, with a combined capacity of 220 MW by 2025.
To facilitate this, the Government introduced several schemes, including net metering, net accounting, and net plus, allowing customers to feed excess solar power into the grid in exchange for credits.
By 2023, the success of the programme was evident, with 39,827 rooftop solar photovoltaic (PV) connections generating a total capacity of 652 MW, according to the latest data from the Ceylon Electricity Board (CEB). Of this, 101 MW came from net metering, 250 MW from net accounting, and 302 MW from net plus installations.
As of 13 March, solar energy continues to make a significant contribution to Sri Lanka’s energy mix, accounting for 8.63% of total generation. Notably, SPP Solar 1 generated 3.58 GWh of electricity, marking a key achievement in the country’s renewable energy strategy.
Despite challenges such as grid instability and the intermittency of solar generation, solar energy remains a vital part of Sri Lanka’s efforts to reduce fossil fuel dependence and minimise its carbon footprint. Other renewable energy sources, such as hydropower and wind power, also contribute to the energy mix.
Hydropower accounts for a substantial share, with the Mahaweli Hydro Complex generating 5.52 GWh (13.31%) and the Samanala Hydro Complex producing 3.29 GWh (7.94%). Wind power contributes 0.22 GWh (0.52%) from SPP wind and 0.37 GWh (0.89%) from CEB wind. Biomass accounts for 0.13 GWh (0.31%).
Although thermal coal still makes up a significant portion of the energy mix, with CEB thermal coal generating 16.91 GWh (40.79%), the growing reliance on renewable energy sources, particularly solar, reflects a shift towards cleaner energy alternatives.
No plans to discourage solar
Amid growing concerns about grid stability and the integration of renewable energy, questions have arisen about whether the Government plans to discourage rooftop solar. These concerns stem from fears that the variability of solar power – dependent on sunlight – could challenge the stability of the electricity grid.
However, senior officials from the CEB and Energy Ministry have stated that there are no plans to discourage rooftop solar.
Speaking to The Sunday Morning, a senior official from the CEB dismissed rumours that rooftop solar would be disconnected from the grid or that the Government intended to limit its expansion.
“The CEB is taking several initiatives to stabilise the system, but this will not affect rooftop solar. The CEB cannot remotely disconnect rooftop solar; it has control only over ground-mounted solar. In extreme cases, if necessary, disconnections would apply only to ground-mounted solar, not rooftop systems,” the official clarified.
This statement sought to assure the public that rooftop solar consumers would not be impacted by the CEB’s grid stability measures. While large-scale ground-mounted solar projects may face disconnections or restrictions in extreme circumstances to maintain grid stability, rooftop solar systems, being decentralised and distributed across households, will remain unaffected.
Solar Industries Association (SIA) President Kushan Jayasuriya also refuted claims that the Government intended to target rooftop solar. He acknowledged that one developer had received a request to disconnect rooftop solar but emphasised that the request had not proceeded further.
“One of our developers received such a request, but it did not proceed. There are no current issues with rooftop solar, except for the need for the CEB to introduce a battery-powered storage system with an incentive-based initiative. This would address the complications caused by solar energy’s variable nature,” Jayasuriya said.
Solar vs. coal
The debate surrounding the future of rooftop solar in Sri Lanka often centres around economic considerations.
Industry experts point out that while coal remains the most cost-effective energy source for power generation in the short term, solar energy offers significant long-term advantages. Coal, while cheaper in operational costs, relies on imports and exposes Sri Lanka to foreign exchange vulnerability due to fluctuating global prices.
In contrast, solar power involves no fuel costs and only requires a one-time investment. After the initial cost of panels and installation, operating costs are minimal, and the panels can generate electricity for 20-25 years with little maintenance.
Jayasuriya explained: “Coal is not an option. Liquefied Natural Gas (LNG) is a good option for maintaining stability, but the future lies with solar and other renewable energy sources. Sri Lanka cannot afford to abandon RE and move forward with only fossil fuels.
“While coal is cheaper in the short term, it depends on imports and foreign exchange. Solar, on the other hand, has no running costs, and its investment is a one-time expense. Solar power plants, like most power plants, typically have a lifespan of around 20 years.”
Moreover, environmental concerns play a critical role in shaping Sri Lanka’s renewable energy policies. As climate change continues to be a pressing global issue, solar energy provides a clean alternative to fossil fuels like coal, which contribute to carbon emissions. Solar energy can play a pivotal role in Sri Lanka’s efforts to reduce its carbon footprint and transition to a sustainable energy future.
Challenges ahead
Despite its advantages, rooftop solar faces several challenges that could impede its growth in Sri Lanka. Grid instability, particularly during periods of low demand, is a significant concern. CEB officials have acknowledged that the grid experiences issues on weekends and public holidays, when electricity demand is lower and excess solar energy feeds into the system.
Without a comprehensive solution to store excess solar power for use during low-demand periods, this variable generation can strain the grid. This challenge highlights the need for energy storage solutions, such as battery storage, to smooth out fluctuations in solar generation.
Currently, battery storage technology is in its early stages in Sri Lanka and the cost of implementing large-scale storage solutions remains a significant barrier. However, as battery prices continue to decline globally and with the introduction of Government incentives to encourage storage solutions, rooftop solar could become an even more viable option for Sri Lankans.
Additionally, tariff adjustments could play a crucial role in shaping the future of rooftop solar in Sri Lanka. While the CEB has suggested that it may reduce tariffs based on global solar panel prices, these adjustments could make solar energy more accessible and encourage wider adoption.
Despite the set targets, the Government’s stance on grid stability following a recent nationwide power blackout has raised concerns about its long-term commitment to rooftop solar. Some fear that a push for more ‘firm energy’ sources, such as coal, LNG, and large hydropower, could overshadow distributed solar energy.
However, Energy Ministry Secretary Prof. Udayanga Hemapala dismissed these concerns, asserting: “There are no plans to discourage solar power additions to the grid.” He acknowledged, however, that grid variability remained a challenge that must be addressed to ensure a stable power supply.
“The relevant parties are taking the necessary steps to stabilise the system without discouraging any form of solar energy,” he added.