President urged to reconsider rooftop solar tariff revisions

THE Solar Industries Association (SIA), representing over 1,000 companies and 40,000 workers in Sri Lanka's rooftop solar sector, has expressed grave concern regarding the proposed drastic reduction in rooftop solar feed-in tariffs.

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"This decision will have catastrophic consequences for our industry, Sri Lanka's renewable energy goals, and the broader economy," said the SIA in a statement, and issued an urgent appeal to President Anura Kumara Disanayake for reconsideration of the proposed move. Following is the statement issued by SIA President Javid Kamil and Secretary S. Sanjeevan.

Economic and industrial consequences of the proposed tariff reduction 1. Investment destruction and massive job losses The proposed tariff reduction will destabilise the industry, leading to the collapse of numerous small and medium-sized enterprises (SMEs) and the potential loss of 40,000 jobs. Over 100,000 existing rooftop solar connections - primarily owned by middleclass families and pensioners - will be financially impacted, causing severe economic distress. The ripple effects of this collapse will extend beyond the solar industry, affecting supporting industries, financial institutions, and local economies.

2. Loss of investor confidence Frequent and significant tariff fluctuations will deter both local and foreign investments in renewable energy. This instability threatens Sri Lanka's ability to meet its renewable energy targets and transition towards energy independence. Without a stable and predictable policy framework, long-term investments in the sector will diminish, setting back the country's progress in clean energy adoption.