SIA warns Sri Lanka against further rooftop solar tariff cuts

The Solar Industries Association (SIA), a Sri Lanka-based industry body advocating for solar energy growth, has urged the government to stop further reductions in rooftop solar tariffs. According to SIA, unpredictable tariff policies have been discouraging investments and threatening industry stability. Six months ago, tariffs dropped from LKR 37 (~$0.1258) to LKR 27 (~$0.0918), and another cut is being considered, raising concerns about long-term viability. Sri Lanka’s rooftop solar sector employs over 40,000 workers, supports 1,000 small and medium-sized enterprises (SMEs), and contributes 600 MW to the national grid, meeting 5% of electricity demand. As per SIA, recent and proposed tariff reductions have created investor uncertainty and put 100,000 solar projects at risk, especially for middle-class households relying on energy savings. Meanwhile, the government is advancing 1,358 MW of solar projects, with developments in Hambantota, Sampur, and Valachchenai.