• High cost of rooftop solar systems, BESS, inverters, batteries, equipment cited 
• Quarterly energy requirement plan, competitive procurement per capacity urged

Tax concessions and other benefits offered under the country's renewable energy policy should be extended to households and small- and medium-scale businesses instead of being confined to large-scale energy investors, the Electricity Consumers’ Association (ECA) stated.

The call comes after the Public Utilities Commission of Sri Lanka (PUCSL) approved a new feed-in tariff structure for renewable energy projects, including projects equipped with battery storage. The revised tariffs took effect yesterday (25) and will remain valid until 24 February of next year (2027). The tariff methodology was approved under Section 29 of the Electricity Act, No. 36 of 2024.

Speaking to The Daily Morning, the ECA’s General Secretary Sanjeewa Dhammika said that the Government should provide special tax concessions, affordable loans and other financial assistance to households installing rooftop solar systems and to small- and medium-scale businesses seeking to purchase battery energy storage systems (BESS), inverters, batteries and other essential equipment. “We aren’t against renewable energy. What we oppose is a system where people’s money is directed towards the business profits of a few in the name of renewable energy.”

He also said that the cost of importing batteries and related equipment remained a major barrier for ordinary consumers seeking to install solar systems with battery backup. "It is unfair to provide tax concessions to large-scale investors without addressing the tax burden faced by households and smaller businesses. People installing rooftop solar systems and small- and medium-scale businesses should also receive special tax concessions for batteries and BESS equipment,” he added.

Dhammika further called on the Government and the PUCSL to publish, on a quarterly basis, the amount of solar capacity that needs to be added to the national electricity system, together with the required battery storage and backup capacity. "The relevant authorities should prepare a quarterly energy requirement plan and conduct competitive and transparent procurement based on the solar, BESS and backup capacity required during each period. Every feed-in tariff should be assessed in terms of how it’ll ultimately affect the electricity bill, and that impact should be made clear to the public.”

He also said that the country should not enter into unlimited or long-term purchasing arrangements without first determining whether they are in the best interest of electricity consumers. “If consumers have to pay higher electricity bills in the future in the name of renewable energy, that can’t be considered a victory for the people.”

The ECA’s comments come as the PUCSL seeks to increase renewable generation and address a projected electricity capacity shortage in the first quarter of 2027. Under the new tariff decision, the National System Operator (NSO) has been directed to ensure that at least 450 megawatts (MW) of solar photovoltaic combined with BESS is added to the national electricity system by March 2027. The measure is intended to provide sufficient capacity to meet the peak demand without scheduled power cuts caused by capacity shortages. The NSO has also been directed to ensure that the monthly average cost per unit of the 160 MW of BESS capacity already offered does not exceed Rs. 20 per kilowatt hour. Any amount above that threshold will not be recognised, recovered or allowed to be passed on through the end-user electricity tariff.