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Renewable with solar, the way forward

July 31, 2025

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Daily FT

ON 16 July, the Prime Minister at the Seventh Meeting of the International Solar Alliance Regional Committee for the Asia and Pacific Region held in Colombo, emphasised on Sri Lanka's dedication to strengthening regional solar cooperation and achieving energy security through sustainable development.

Renewable with solar, the way forward

Apparently, the Prime Minister is more concerned of regional solar corporation, rather than the country's requirement. This brings again the undisclosed agreement the President signed with India. It is clear that India wishes to connect the two countries with an electrical connection and export electricity to Sri Lanka. It is well known that the production cost of India is lower than Sri Lanka.

In March 2025, the Government decided to revise the tariff paid per unit of electricity generated by rooftop solar panels, following recommendations from the Ceylon Electricity Board (CEB) claiming to align with current energy policies and market conditions. Currently, solar energy producers receive Rs. 27 per unit of electricity supplied to the grid. Under the proposed changes, this rate is expected to be reduced, based on the capacity of the individual solar system.

In Kerala, South India electricity tariffs vary, based on usage and consumer category. Currently Kerala State Electricity Board and recent changes include both fixed and energy charges.

For example, with currently Indian Rupee costing nearly Rs. 3.50, Indian consumers using 0-40 units pay 1.50 per unit or SLR 5.25, while those consuming above 250 units pay ₹8.80 or SLR 30.80 per unit.

Meanwhile, local consumers using up to 60 units a month are charged Rs. 7.85 per month with no fixed charge and consumers using over 121 units are charged Rs. 32 per unit with a fixed charge of Rs. 480. Above shows that Sri Lankans pay higher charges for electricity than the South Indians.

Power generation in Sri Lanka

Table 1 shows that in 2023 wind power contributed 5.25% and solar 5.5% amounting to a small amount compared to 29.8% coal and 20.1% thermal, with 50% dependency on imported fuels, showing the importance of urgently moving over to wind and solar power.

Renewable energy in Sri Lanka

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