Sri Lanka’s rooftop solar story is at a crossroads.
On one side, we’ve had one of the most impressive rooftop solar roll-outs in the region, with thousands of homes and businesses cutting bills and fossil fuel use.
On the other, recent tariff changes and mixed messages have left many people wondering:
“Is it still worth installing solar on my roof?”
The short answer: yes, rooftop solar still matters a lot – for your bill and for the country – but you need to understand the new landscape.
The blackout myth: rooftop solar was not the villain
After the major blackout in February 2025, some early comments tried to link the incident to “too much solar on the grid.”
However, expert analysis and the official CEB report point to a very different cause: incorrect transmission protection settings and operational errors at large hydro power stations (especially Victoria), not excess rooftop solar.
Importantly, the blackout report did not highlight rooftop solar as a problem.
So while there are real technical questions about how to integrate more renewables into the grid, rooftop solar did not “crash” the system.
For you as a consumer, that means you don’t need to fear that “having panels on the roof is dangerous for the grid.” The challenge is not solar itself – it is how the grid is upgraded, automated and managed.
Rooftop solar Sri Lanka: from experiment to mainstream
Despite recent policy noise, Sri Lanka has already achieved what many countries are still trying to do.
- Rooftop solar capacity has moved from tiny numbers to more than 2,000 MW (2 GW) across well over 150,000 systems
- A big share of total electricity now comes from “small renewables” – rooftop solar, wind, mini-hydro, biomass – and that share has jumped from around 10% (2019) to more than a quarter of national generation
- Expensive oil-based generation has fallen, easing pressure on electricity costs and foreign exchange
- Every kWh from rooftop solar reduces the need to burn imported fuel, saving hundreds of millions of dollars a year in outflows
This is not just about technology. It is “energy democratisation”: ordinary households and SMEs becoming power producers, not just bill payers.
What changed: new solar tariffs and why people are worried
In 2025, the Government introduced a new tariff structure that cut feed-in tariffs (FITs) for rooftop and utility solar.
Where older schemes such as Soorya Bala Sangramaya offered higher, two-tier payments per kWh and made payback very attractive, the new rates are lower and feel tight for many households and project developers.
Industry experts like Dr. Vidhura Ralapanawe have warned that:
- Very low export tariffs can slow down new rooftop installations
- Over 700 local solar companies and SMEs – many employing youth and women – could struggle if returns are squeezed too far
- Ambitious targets like adding 2,000 MW of new rooftop solar become harder if investor confidence is shaken
On top of this, schemes like Net++ that previously rewarded commercial and industrial customers for exporting beyond their contracted load have been removed, reducing flexibility for business-scale rooftop projects.
The positive side: why rooftop solar still makes sense
Even in this new environment, rooftop solar continues to deliver three big wins:
- Lower long-term electricity bills
A well-sized on-grid or hybrid system can still offset a significant portion of your monthly bill, especially if your consumption is high and you use a lot of power during daylight hours. - Protection against future tariff hikes
Grid tariffs rarely go down over the long term. Once your solar system is installed and paid for, each unit it generates is basically a hedge against future price increases. - National economic and environmental benefits
- Less money spent on imported fossil fuels
- Lower carbon emissions and better odds of meeting 2030 and 2050 climate targets
- Skilled jobs in design, installation, maintenance, and after-sales service
In other words, the fundamentals that made rooftop solar attractive have not disappeared. The payback period may shift, but the strategic value remains.
The real bottleneck: grid upgrades, not panels on roofs
One key reason for the current “solar tension” is that the grid has not been modernised fast enough to match the growth in renewable capacity.
Several issues are still waiting to be resolved:
- Battery Energy Storage Systems (BESS):
Large-scale storage makes it possible to take daytime solar, store it, and use it at the evening peak. Plans exist on paper, but implementation has lagged behind. - Grid automation and smart control:
Smarter, more responsive grid infrastructure is needed to balance variable renewables with hydro and other sources, without relying on blunt curtailments or restrictions. - Use of existing assets:
Idle gas generators could be converted into synchronous condensers (syncons) to stabilise the grid, but those upgrades have been slow.
The encouraging part: when properly tendered, battery projects have already come in far cheaper than earlier cost estimates. That means modernising the grid is not only technically possible, it is becoming financially realistic too.
What this means for you as a homeowner or business in Sri Lanka
Instead of panicking and giving up on solar, a more practical response is to be smart and informed:
- Focus on right-sizing
Work with an experienced installer to size your system according to your real usage pattern, not just the maximum you can fit on the roof. - Understand your scheme and tariff
Whether you are on net metering, net accounting or a newer tariff structure, understand exactly how exports and imports are billed. That is the key to realistic payback expectations. - Think “battery-ready” and future-proof
Even if you don’t install batteries today, designing your system so you can add storage later is a wise move as BESS prices keep coming down and grid rules evolve. - Choose partners who will be around tomorrow
Long-term warranties and after-sales support matter more than ever. Pick a company with proven projects, real reviews, and the technical depth to navigate changing regulations.
Sri Lanka’s rooftop solar future: fragile, but full of potential
Sri Lanka is one of the few countries with both excellent solar resources and a large, established rooftop base – and yet it is putting friction on new growth right when the world is racing in the opposite direction.
The good news is that the path forward is clear:
- Stable, predictable tariff policies based on real costs and reasonable returns
- Fast-tracked grid modernisation with storage and smart control
- Transparent, consultative decision-making with industry and experts
- Capacity rules that encourage future demand growth (EVs, electrification) rather than freezing systems at old consumption levels
If policymakers align with these principles, rooftop solar can continue to cut your bills, strengthen Sri Lanka’s energy security, and position the country as a regional climate leader – not a cautionary tale.
For now, the key is not to panic, but to plan.
With the right system design and a trusted installer, rooftop solar in Sri Lanka can still be one of the smartest long-term decisions you make for your home or business.
