• Solar transition needs affordable finance, predictable rules, faster connections and a grid designed for distributed energy
• Lack of sunlight is not the problem, but the lack of a proper support-system 

Across the island, families, businesses, schools and places of worship can see the attraction of rooftop solar. A panel installed today can reduce exposure to electricity-price shocks, ease the country’s dependence on imported fuel and turn an unused roof into a small power station. At a national level, solar energy can help Sri Lanka conserve foreign exchange, improve energy security and move towards its climate goals.

Sri Lankans have already shown they are willing to invest. The Public Utilities Commission reports about 930 megawatts (MW) of rooftop solar capacity, a significant achievement for a relatively small electricity system. The Ceylon Electricity Board (CEB) (since liquidated and replaced by several Companies led by the National System Operator) offers net metering, net accounting and net-plus arrangements, while the national policy ambition is to obtain at least 70 per cent of electricity generation from renewable sources. These are not signs of a country that has ignored solar power. They are signs of a country that has begun the transition but has not yet built the complete system needed to sustain it.

The fairest comparison with the rest of Asia is therefore not simply the number of panels installed. China and India are vastly larger economies, so an absolute MW comparison tells us little. The more useful question is this: How easy, predictable and affordable does each country make it for an ordinary household or business to go solar? On that measure, Sri Lanka still has ground to cover.

What other Asian countries are doing differently?

India’s rooftop programme shows what coordinated public support can look like. Under the national PM Surya Ghar scheme, the Government created a single national portal, household subsidies and access to collateral-free loans. The programme carries an outlay of Indian Rupees crore 75,021 and aims to reach 10 million households. By March of this year (2026), official figures said that about 2.6 million systems had been installed and ₹ crore 17,967 in assistance had been provided. The important lesson is not that Sri Lanka should copy India Rupee for Rupee. It is that India treats rooftop solar as public infrastructure as well as a private purchase. A homeowner is not left alone to find the capital, navigate multiple institutions, judge the quality of an installer and carry every technical risk.

China offers a different lesson. According to the International Energy Agency, distributed solar accounted for around 40% of China’s total solar capacity in 2024. Falling equipment costs helped, but so did long-term national programmes and a policy environment that encouraged deployment at scale. China is now confronting the next challenge: strengthening distribution networks so that they can absorb power from millions of small generators.

Vietnam provides a warning as well as an example. Attractive feed-in tariffs produced a rapid solar boom between 2019 and 2021. However, grid bottlenecks, curtailment and the later removal of those incentives contributed to an investment slump and contractual disputes. The lesson is clear: generous incentives without transmission planning and stable rules can create a boom that the power system cannot manage.

Sri Lanka should learn from all three experiences. Financial support matters. Predictable policy matters. Grid readiness matters. None can substitute for the others.

Progress, but not yet a complete policy

Sri Lanka’s authorities are beginning to address some of these gaps. In August, the regulator announced new tariff bands for rooftop solar, ranging from Rs. 23.11 per kilowatt (kW)-hour for new systems up to 10 kW to lower rates for larger installations. It also introduced higher payments during priority periods for systems that combine solar panels with battery storage. This is a welcome recognition that electricity generated in the evening is more valuable to the system than excess power produced at noon.

The World Bank also approved a United States Dollars 150 million programme in June of last year (2025) to support cleaner, more reliable and affordable electricity, including the expansion of solar and wind power and reduced dependence on fossil-fuel imports.

Yet, these measures still do not amount to an accessible national offer for every Sri Lankan family. The upfront cost of panels and batteries remains beyond many low- and middle-income households. Commercial lending rates can make a system unattractive even when its lifetime economics are sound. Renters and apartment residents may have no suitable roof of their own. Small businesses often need certainty about connection times and future payments before committing scarce capital.

Policy changes also affect confidence. A tariff revision may be technically justified as equipment costs fall, but households and businesses make investments that must earn a return over many years. When rules appear temporary or difficult to understand, people delay decisions. A stable five-year roadmap, with existing agreements protected when new rules are introduced, would be more valuable than repeated short-term announcements.

The grid constraint is real. Solar output peaks in the middle of the day, while Sri Lanka’s electricity demand often remains high after sunset. On some local networks, transformers and distribution lines were not designed for power to flow back from hundreds of rooftops. The CEB itself acknowledges technical limits to renewable integration. Ignoring those limits would be irresponsible; using them as a reason to slow the entire transition would be equally so. The answer is to modernise the system.

A practical support package for SL

First, Sri Lanka needs a single, transparent digital process for applications, approvals and payments. Applicants should be able to see the status of a connection request, the technical reason for any delay and a clear deadline for a decision. Public maps showing how much additional solar that each local network can host would help consumers and installers plan realistically.

Second, support should be targeted towards those who cannot participate without it. A modest capital grant or concessional loan for low- and middle-income households would spread the benefits beyond wealthy property owners. Schools, hospitals and Local-Government buildings should be prioritised because every Rupee saved on electricity can be redirected to public services.

Third, Sri Lanka should reward energy that helps the grid, not merely energy that is produced. The new battery-linked tariffs are a useful beginning. They should be expanded through time-of-use pricing, affordable battery finance, smart inverters and incentives for businesses to shift some consumption to sunny hours. Solar water pumping, cold storage and daytime industrial loads can absorb electricity when it is most abundant.

Fourth, consumer protection must grow with the market. Minimum equipment standards, accredited installers, enforceable warranties and a simple complaints process would protect households from poor-quality systems. Technical training could also create thousands of skilled jobs in installation, maintenance, electrical work and battery management.

Finally, the country needs options for people without their own roofs. Community solar projects could allow renters, apartment residents and small enterprises to buy or subscribe to a share of a larger installation and receive a credit on their bills. This would make the energy transition broader and fairer.

The real comparison with Asia

Sri Lanka is not starting from zero. Its 930 MW of rooftop solar shows public demand, private initiative and a foundation on which to build. The country’s size could even become an advantage: a coordinated reform of tariffs, finance, approvals and local grids could produce visible results faster than in a much larger nation.

Asia’s leading solar markets demonstrate that low panel prices alone do not create a successful transition. India is building a mass household programme around subsidies, credit and a national portal. China combined scale with sustained policy and is now investing in grid integration. Vietnam shows the cost of allowing incentives and network planning to move at different speeds.

Sri Lanka’s missing resource is not sunshine, engineering talent or public interest. It is a dependable system around the panel: affordable finance, clear rules, timely connections, a modern grid and support that includes ordinary families.

Solar power should not be treated as a favour offered temporarily to consumers. It is part of the country’s energy infrastructure. If Sri Lanka supports it with the seriousness shown by Asia’s strongest programmes, the island can cut fuel imports, protect households from future shocks and turn its abundant sunlight into long-term national resilience.

The writer is a climate specialist with a background in environmental management, and a sustainability and development professional

----------------------

The views and opinions expressed in this column are those of the writer, and do not necessarily reflect those of this publication