• Taxes to be reduced on BESS
• Incentive payment for new rooftop solar 

The Government will introduce measures through next year’s (2027) Budget, including removing part of the taxes on battery energy storage systems (BESSs) and providing an incentive payment for new rooftop solar installations, as it plans to add a total of 1,762 megawatts (MW) of solar and wind power to the national grid between 2027 and 2029, Energy Minister Anura Karunathilaka said.

Responding to a question raised by Opposition Parliamentarian Shanakiyan Rajaputhiran Rasamanickam, he said that the Government is working to further expand renewable energy in line with the draft development plans for the next three years (2027-2029) and the interim power generation development plans. 

According to him, the Government plans to add 642 MW of solar power and 50 MW of wind power in 2027. In 2028, it expects to add another 300 MW of solar and 160 MW of wind power, followed by 450 MW of solar and 160 MW of wind power in 2029. This would bring the total planned addition over the three-year period to 1,392 MW of solar power and 370 MW of wind power. 

However, Rasamanickam questioned whether the Government would be able to achieve these targets after recent changes to the Net Metering and Net Accounting systems for rooftop solar power. He said that while the Government had announced plans to increase electricity generation through solar power, the changes had discouraged people and companies that had installed solar panels on rooftops. 

"After the Net Metering and Net Accounting systems were removed, I don’t think that these targets can be achieved." He said that people who had installed rooftop solar systems had become discouraged and were now reaching a point where they are considering stopping such projects. "Ground-mounted solar systems and rooftop solar systems are currently being treated differently. These issues must be resolved immediately. If not, it won't be possible for the Government to achieve these targets." 

Rasamanickam further noted that the Government had proposed tax concessions for BESSs in last year's (2025) Budget, but said that these concessions had still not been granted despite the Government preparing to present the 2027 Budget. He also said that agreements relating to such concessions had not been provided to people engaged in solar power generation.

Responding to him, Karunathilaka said that the Government planned to increase the BESS capacity to 160 MW this year (2026), 540 MW next year and 1,240 MW by 2029. "We accept that the taxes imposed on battery systems used by those who have installed solar panels on rooftops are high. However, they weren’t imposed by the current Government. They were introduced by previous Governments at different stages. We’ve understood this situation, and, through this Budget, we’ll remove part of those taxes," he said, and added that the Government would also introduce an incentive payment for people who newly install solar panels on rooftops.