Sri Lanka shifts rooftop solar incentive framework with feed-in tariff policy

Sri Lanka's energy regulator has implemented a significant change to its renewable energy incentive structure, replacing the net metering model with a feed-in tariff scheme for rooftop solar installations. Under the new framework, households with solar panels will receive payment for excess electricity fed back into the national grid at predetermined tariff rates, rather than receiving credits against their consumption through net metering.

The feed-in tariff approach represents a departure from the previous net metering system, which allowed consumers to offset their electricity bills by the amount of solar energy they exported to the grid. Industry analysts suggest the transition reflects evolving policy considerations regarding grid management and cost recovery mechanisms for utility operators.

The shift carries implications for the residential solar sector, potentially affecting the financial viability calculations for households considering solar installations. Under feed-in tariffs, consumers will receive direct payment for exported electricity at rates set by authorities, creating a more transparent compensation mechanism than the previous offset-based system.

Solar advocates and industry stakeholders are monitoring how the tariff rates compare to the effective value provided under the previous net metering arrangement. The policy adjustment comes as Sri Lanka continues pursuing renewable energy targets amid ongoing efforts to diversify its energy generation portfolio and reduce dependence on fossil fuels.