Solar industry warns looming crisis over policy threats, investment collapse

Claims over 1.5 GWp of solar capacity installed, saving billions in avoided energy costs now at risk

- 

SRI Lanka's solar industry is warning of a looming collapse in renewable energy development if urgent reforms are not made to the country's energy policy framework.

In a powerful submission to the Public Utilities Commission (PUCSL), the Solar Industries Association (SIA) has outlined a raft of challenges that it says are crippling investor confidence, destabilising the sector, and threatening tens of thousands of jobs.

"Sri Lanka has successfully commissioned over 1.5 GWp of solar PV capacity, contributing billions of rupees in avoided energy costs. However, the current policy environment presents significant threats to the sector's viability and growth," the submission notes.

At the heart of the issue is a series of flawed regulatory decisions and what the industry describes as "unprofessional" recommendations being submitted to policymakers.

According to the SIA, recent Cabinet papers were based on misleading data, including inflated assumptions about plant load factors. The industry insists real world solar performance ranges between 13-14%—yet official models continue to assume 16%, undermining tariff calculations and deterring new investment.

"There is no premium for investors. The disparity in rates between rooftop and ground-mounted solar is arbitrary and unjustified," they claimed.