ENERGY SECTOR
INSIDE THE SOLAR SHIZFT
Q: How would you describe the current state of Sri Lanka’s solar energy sector?
A: Sri Lanka’s solar energy sector has seen notable expansion in recent years with installed capacity currently exceeding 1,700 megawatt peak. This includes rooftop and ground mounted solar systems, and reflects a commendable shift towards decentralised renewable energy.
However, the sector now faces a period of volatility.
While the initial momentum was driven by favourable policies and growing awareness, the current environment is marked by uncertainty due to grid constraints and reduction in export tariffs.
This has caused hesitation among investors and consumers, threatening the confidence needed to sustain the government’s renewable energy road map.
Q: What are the challenges facing the adoption and expansion of solar energy solutions today?
A: The most prominent challenge is the inadequacy of the national grid infrastructure. The system is not equipped to handle the intermittency of solar energy, especially during peak generation periods such as public holidays.
This results in instability across the entire grid due to an imbalance between energy generation and consumption. In some instances, solar energy that could be supplied to the grid is being deliberately curtailed.
Adding to the complexity is ongoing policy volatility. Changes in government regulations and revisions of feed-in tariffs have created a climate of uncertainty.
Together, these issues hinder the scaling up of solar deployment and integration of renewables into the national energy mix.
Q: How are renewable energy policies shaping investment and growth opportunities in the sector?
A: Renewable energy policies have played a pivotal role in creating market opportunities through mechanisms such as feed-in schemes, favourable tariffs and government tenders that encourage private sector participation in renewable energy projects.
Therefore, it’s crucial that the government takes decisive action to drive mass adoption. Unfortunately, the recent tariff revision – which reduced the solar export rate to Rs. 14 a unit – has deterred potential investors.
That said, the cabinet has approved a new tariff of Rs. 45.80 a unit for battery stored solar power exported to the grid at night – a step in the right direction, as it incentivises energy storage and positions solar as a viable 24/7 energy source.
However, the real issue lies in execution. Delays in approvals, procedural ambiguity and inconsistent implementation continue to stall the momentum sparked by policy announcements. Without effective execution, investor confidence erodes and the sector remains stuck in a holding pattern.
Q: How important is grid infrastructure in supporting the integration of renewable energy – and what improvements are needed?
A: Grid infrastructure is the backbone of any successful renewable energy transition. In Sri Lanka, it’s the area requiring most intervention. The existing infrastructure was designed for centralised power generation; it does not accommodate the decentralised and intermittent nature of solar energy.
Immediate upgrades are required in transmission and distribution systems to support the increased influx of renewables. While full-scale grid modernisation is a long-term endeavour, battery energy storage offers an interim solution. It can mitigate fluctuations, stabilise supply and defer expensive grid upgrades.
A hybrid approach involving short-term storage and long-term grid enhancements will be vital in facilitating a reliable renewable energy future.
Equally important is the proposed Sri Lanka-India high-voltage direct current (HVDC) interconnection, which could unlock regional energy integration and improve grid flexibility.
Q: What role can rooftop solar play in rural electrification and decentralised energy access?
A: Solar energy holds immense potential to reshape rural energy access. From off-grid home systems to solar powered pumps and water purification units, modern solar technologies are delivering reliable and affordable electricity to communities that are traditionally excluded from the national grid.
A compelling example is the semi-transparent solar photovoltaic powered agrivoltaics demonstration project commissioned in 2024 in Kandy. The 85 kilowatt peak hybrid solar system, mounted above an active tea plantation, powers over 100 households through a battery energy storage solution while also contributing clean energy to the national grid.
Beyond electrification, the system supports a solar powered groundwater pump that services the crop and neighbouring estate community, along with LED lighting optimised for tea growth. This model delivers food, water and energy security, and is a blueprint for sustainable rural transformation through solar.
Q: What emerging technologies will define the future of solar energy?
A: The future of solar energy lies in a blend of advanced technologies and adaptable applications including battery energy storage systems, which will address intermittency, offer grid stabilisation and demand side flexibility.
Additionally, floating solar solutions present an answer to land scarcity, especially in reservoir rich nations such as Sri Lanka. Transparent solar panels and agrivoltaics allow for dual land usage, and increase energy yield without compromising land productivity.
Finally, flexible solar panels and building integrated photovoltaics represent the next wave of design led innovation, making solar a seamless component of buildings and infrastructure.
And as these technologies scale, local players are increasingly stepping up to shape the sector’s trajectory.
