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By Nidarshani Wickramasinghe<\/p>\n
Although Sri Lanka has set a target of increasing the share of renewable energy to 70 per cent by 2030, civil society professionals have alleged that responsible authorities are taking steps that discourage rooftop solar power generation.<\/p>\n
They pointed out that the authorities are paying higher prices for procuring more expensive sources of electricity while paying lower prices for obtaining cheaper sources.<\/p>\n
They made these observations while commenting on the current mechanism governing rooftop solar power generation.<\/p>\n
According to a decision by the Ministry of Energy, Net Metering and Net Accounting schemes will no longer be offered for new solar systems connected to the national grid after September 11, 2026.<\/p>\n
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Anyone installing a new solar system in the future will be approved only under the Net Plus scheme. Pic by Eshan Fernando<\/p>\n
Under Net Metering, the number of electricity units generated by a household during the daytime is deducted from the number of units consumed at night. This scheme has been suspended for new connections on the grounds that it causes losses to the Ceylon Electricity Board (CEB).<\/p>\n
Net Accounting, meanwhile, is a system under which the electricity generated by a rooftop solar system is first used to reduce household consumption, while the surplus electricity is sold to the CEB in return for payment.<\/p>\n
However, those who have already obtained either of these two schemes will continue under the existing arrangement until the expiry of their current agreements, with no changes affecting existing customers.<\/p>\n
Accordingly, anyone installing a new solar system in the future will be approved only under the Net Plus scheme.<\/p>\n
Under the Net Plus scheme, every unit of electricity generated by a rooftop solar system is supplied directly to the national grid through the CEB or Lanka Electricity Company (LECO). A fixed Feed-in Tariff determined by the Public Utilities Commission of Sri Lanka (PUCSL) is paid for the electricity supplied.<\/p>\n
A separate electricity bill is issued for household consumption as usual, and the consumer has to pay this bill as an ordinary electricity customer. In other words, electricity generation and consumption operate independently as two separate accounts.<\/p>\n
The new Net Plus agreements are valid for a maximum period of 12 years.<\/p>\n
Commenting on the matter, former CEB General Manager and electrical engineer M.R. Ranathunga said that in order to enable sustainable electricity consumption of at least six units per day, the authorities should, in addition to Net Plus, allow a limited number of units approximately 180 units per month to be provided through Net Metering or Net Accounting.<\/p>\n
He pointed out that this would enable Sri Lanka to obtain several benefits, including allowing people to continue operating their solar systems, reducing the need to draw large amounts of electricity from the grid to charge electric vehicles, and making maximum use of solar energy.<\/p>\n
\u201cAccording to the current system, if the consumption is 5 kW, the amount that can be generated is also limited to the same capacity. They do not allow additional generation by installing new wiring. At the current level, the payment is Rs. 23.11 per unit. For single-phase connections, 30 amps are allowed up to 5 or 10 kW. Those with three-phase connections can go up to 20 kW. However, if it is above 10 kW and below 40 kW, the payment is Rs. 19.50 per unit.<\/p>\n
\u201cSmall scale workshops can obtain three-phase 60-amp connections because they have rooftop space available. For systems between 10 and 40 kW, the payment is Rs. 19.15 per unit.<\/p>\n
\u201cHotels, factories and wholesale businesses with their own transformer facilities can go up to 250 kW. Under the new system, they receive Rs. 17.11 per unit generated.<\/p>\n
\u201cInstead of supplying the electricity during the daytime, it can be stored and supplied during the peak period, battery storage system for which around Rs. 45.53 is paid per unit. Electricity has to be supplied to the Ceylon Electricity Board from 6.30 p.m. to 10 p.m.<\/p>\n
\u201cA solar hybrid system can be installed to manage the timing. Battery-based systems can operate for up to around 15 years.<\/p>\n
\u201cThe loss to the consumer is that consumption can exceed 300 units, particularly if an electric vehicle is purchased and charged at home. Under the domestic electricity tariff, if consumption exceeds 180 units, around Rs. 100 has to be paid per unit. At around 300 units, there is also a fixed charge of Rs. 2,500. When all this is considered, in addition to normal electricity consumption, the total monthly payment could be close to or exceed Rs. 20,000.<\/p>\n
\u201cPeople were encouraged to install solar systems with the promise that they could \u2018make their electricity bill zero\u2019. Installing a solar system costs approximately Rs. 1 million. If a 5 kW system generates around Rs. 12,000 a month, the annual income would be approximately Rs. 140,000. It would take around 10 years just to recover the investment. For approximately 15 years, there would be little benefit from the initial investment.<\/p>\n
\u201cIn that case, the Government should provide interest-free loans. At least a limited amount of Net Accounting or Net Metering should be made available. At the very least, people should be allowed to use the electricity generated to cover the cost of charging their vehicles.<\/p>\n
\u201cUnder the Time-of-Use (TOU) system, Rs. 45.53 is received per unit supplied to the CEB during peak hours. However, if the consumer uses that electricity during the same period when demand is at its highest they are charged around Rs. 106 per unit. That leaves a surplus of approximately Rs. 60.47 per unit. It is said that a utility should not make profits and that only fuel, water and production costs are to be covered. If the cost of generation during the period without feed-in is Rs. 45.53, why is Rs. 106 being charged?\u201d he questioned.<\/p>\n
Meanwhile, Electrical Engineer Ashoka Abeygunawardana, an expert on Sri Lanka\u2019s renewable energy sector and energy planning, said that the responsible parties were purchasing expensive sources at higher prices while procuring cheaper sources at lower prices.<\/p>\n
\u201cIf a system of around 5 kW were installed on every household, it would be possible to generate around 25,000 MW of capacity. Accordingly, more than 35,000 gigawatt-hours of electricity could be generated annually. That is three times the current generation. However, the necessary mechanism and the required storage system have not been established.<\/p>\n
\u201cThere are two methods, battery energy storage systems combined with solar power and pumped, storage hybrid power plants. The latter is the cheapest method and can be maintained for even 100 years. There has been a plan for a generation project since around 2010, but none of these projects has been implemented to date.<\/p>\n
\u201cThey are planning to develop such a project, but it would take 10 years to complete. The locations selected by the responsible authorities are wrong because areas with social and environmental issues should not be selected. The best option would have been to select the Victoria, Randenigala area, but that was not done. This is a problem involving former CEB engineers. This should really be implemented.<\/p>\n
\u201cNow they have selected rural areas for battery storage. But it should be done in urban areas. What they are doing is a strategy to create opportunities for large companies, because it would allow ground-mounted solar parks to be developed,\u201d he alleged.<\/p>\n
Meanwhile, the Centre for Environmental Justice (CEJ) said that electricity consumers should be aware of their rights as consumers. The organisation pointed out that the majority of the public lacked awareness of these matters and stressed the importance of focusing on how the PUCSL could be strengthened.<\/p>\n
However, Parakrama Jayasinghe, former chairman of the Bioenergy Association and a mechanical engineer, said that Sri Lanka was still spending around 5 billion on fuel imports and alleged that the \u2018rooftop solar\u2019concept was being taken over by a \u2018diesel mafia\u2019 and handed over to mega companies.<\/p>\n
He further said that the private sector had won the competition between the Government and the private sector in electricity generation, and that the current situation was a competition between consumers and the private sector.<\/p>\n
However, Minister of Energy Anura Karunathilake yesterday rejected the allegations, stating that updated mechanisms based on the existing schemes are being prepared and that new mechanisms are expected to be introduced.<\/p>\n
The Minister said discussions are currently underway to give further consideration to the consumer\u2019s perspective under the Net Plus scheme and to incorporate several additional features into the system.<\/p>\n
He pointed out that 1,500 MW of new capacity had been added to the overall electricity system since November 2024. Accordingly, the Government\u2019s objective is to reduce electricity bills by 30% by 2030, the Minister said.<\/p>\n
\u201cBased on the National Electricity Policy that has been announced, a decision has been made to approve only the Net Plus scheme. This is not a unilateral decision; it is a decision that has also been approved by the Cabinet.<\/p>\n
\u201cGeneration during the daytime has a lower value. Since there is currently no storage within the system, electricity has to be generated by producers at a higher cost to meet the demand at night. Ultimately, this additional cost has to be passed on to the seven million electricity consumers.<\/p>\n
\u201cTherefore, we are discussing a mechanism whereby consumers would be paid for a portion of the electricity they generate during the daytime, while also covering the cost associated with the electricity required at night.<\/p>\n
\u201cWe also hope to shift commonly used consumption, including vehicle charging and other electricity usage, to daytime hours, while limiting night-time consumption to essential requirements,\u201d he added.<\/p>\n
Meanwhile, speaking at a media briefing held yesterday (26) at the Department of Government Information, Sri Lanka Sustainable Energy Authority (SLSEA) Chairman Prof. Wijendra J. Bandara said that battery storage was the technology that could be adopted most rapidly.<\/p>\n
Accordingly, he pointed out that solar power generated during the daytime should be shifted for use at night.<\/p>\n
He said that, as an immediate government measure, the aim was to reduce the tax on batteries by 100% and increase energy storage systems.<\/p>\n
The Chairman further said that the tender for battery storage for existing solar power systems had now been concluded, and stressed that the Government would not halt the transition towards battery storage systems.<\/p>\n