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Rooftop solar projects: Short-circuited by approval delays 

04 Dec 2021

  • Delays in approval system for rooftop solar panel installations: SIA
  • Slow pace due to practical issues, not policies: CEB Chair Ferdinando
  • Lack of consensus between industry and utility provider: Solar industry  
By Uwin Lugoda The Government’s target of sourcing 70% of Sri Lanka's energy via renewable sources is at risk due to delays in government approval for rooftop solar energy systems, industry stakeholders told The Sunday Morning. According to the Solar Industries Association (SIA), the current approval system in place for the installation of rooftop solar panels has major delays, which may deter people from implementing a solar energy system. Speaking to The Sunday Morning, SIA President Kushan Jayasuriya stated that before each installation, the project needs to be pre-approved by the Government, which can take up to four months. “Our current pre-approval system is such that it can take anywhere between three weeks to four months before being approved. By this time, consumers get fed up and walk away from installing solar panels,” said Jayasuriya. He opined that this would be an obstacle in reaching the Government’s target of sourcing 70% of its power needs through renewable sources. He also stated that the only way for rooftop solar to play its part in helping achieve this target is to expedite the approval process to around three weeks, which would encourage more people to install solar systems. Rooftop solar is a part of the Government’s plan for a more energy-efficient Sri Lanka, as stated in President Gotabaya Rajapaksa’s “Vistas of Prosperity and Splendour” policy framework, which called for 70% of the country’s energy to be generated via renewable sources by 2030. In it, this was highlighted as the most prominent solution to Sri Lanka's current energy crisis. When questioned about this delay issue, Ceylon Electricity Board (CEB) Chairman M.M.C. Ferdinando stated that this was not a result of policy, but rather due to practicality issues. He explained that the current pricing model for solar power is complex, since the systems are attached to the grid and work on a power import-export system for the consumers, and that currently, the CEB enters into 20-year contracts with consumers, such as net accounting contracts, which see the CEB buying power from customers at a price of Rs. 22 per unit for the first seven years, and then Rs. 15.50 per unit for the remaining 13 years. He stated that there is an ongoing debate between stakeholders and the CEB on whether to increase or decrease this tariff, leading to delays in approvals for rooftop solar. “Some want to see this tariff increased, but the CEB’s stance is that it is already too high. A decision has not been reached on whether to increase or decrease the price at which we buy units from consumers, and the Government has assigned a committee at the ministerial level to address this issue by coming up with a fair tariff. Until then, there will be delays,” said Ferdinando. He stated that a cabinet sub-committee meeting was held last Wednesday (1), where it was recommended that the tariff be increased only between 6.30 p.m. to 9.30 p.m. every day, to help maintain public interest in rooftop solar. “Since we plan on achieving 70% renewable energy by 2030, we put a lot of focus on hydro, solar, wind, and biomass. While we already source around 30% of our power from hydro, it is tapped out, leaving solar as the next option. And when it comes to solar, we cannot just install it just anywhere, since most of Sri Lanka’s land is deemed fertile, so we have to depend on rooftop solar. Therefore, we are determined to encourage the installation of rooftop solar systems,” said Ferdinando.  However, Jayasuriya opined that as of now, the CEB was incapable of revising the tariff due to the dollar crisis and international prices for solar panels having gone up by 30% during the pandemic. He explained that the only way the tariff can go is up, since if it reduces, the only thing driving rooftop solar – the private sector – would be negatively impacted. Jayasuriya added that during the SIA’s last discussion with the Sustainable Energy Authority, they were promised a plan which would allow for approvals for solar systems to be given within the span of four weeks.


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