By: Panduka Keerthinanda , Attorney-at-Law, (Courtesy Daily Mirror)
“Sooriya Bala Sangramaya” (Solar Energy) program launched around 2016-2017, introducing net-metering and other schemes, boosted by Asian Development Bank funding and leading to rapid capacity increases and milestones in the country.
Therefore solar panels on rooftops has been a symbol of progress a sign of homeowners taking control of their energy bills, contributing to a greener grid, and making a sound financial investment in the future.
This vision, however, is now under threat for many. With the proposed new electricity tariffs (Time of use tariffs) set to take effect in June 2026, a wave of anxiety is sweeping through the community of solar adopters. The alarming consensus is that rooftop solar power generation risks becoming a loss making investment, turning a promise of sustainability and savings into a source of financial regret.
The core of the issue lies in the expected drastic reduction or restructuring of feed-in tariffs (FiTs) the rate at which homeowners are credited for surplus energy fed back into the national grid. Many individuals and families made the significant upfront investment in solar panels based on long-term financial calculations that included these tariffs. The projected return on investment (ROI), often over a 5-7 year period, is now being upended overnight. As one early adopter put it, “We are now mourning our investment. The calculations we trusted have been pulled from under our feet. How a policy shift is disillusioning early adopters and undermining clean energy in the country.”
What makes this situation particularly disheartening is its unprecedented nature. Nowhere else in the world has a major economy moved so decisively to discourage the adoption of rooftop solar at a time when global consensus urges its acceleration. Nations from Germany and Australia to Japan and the United States continue to refine, not retreat from, support mechanisms for distributed solar generation. They recognize its critical role in decarbonizing the energy mix, enhancing grid resilience, reducing peak demand, and empowering citizens. This policy shift stands in stark contrast, potentially stalling a citizen-led energy revolution.
The consequences extend beyond balance sheets:
1. A Crisis of Trust: Future government or utility schemes promoting green technology will face profound skepticism. How can citizens invest confidently if the rules can change so detrimentally after commitments are made?
2. Stifling Industry Growth: The vibrant ecosystem of installers, technicians, and manufacturers built around solar energy faces an abrupt contraction, leading to job losses and stalled innovation.
3. Increased Grid Burden: By making solar less attractive, the policy discourages distributed generation that alleviates pressure on the central grid, especially during high demand periods.
4. Environmental Backtracking: It sends a conflicting message about climate commitments, undermining national and individual efforts to reduce carbon footprints.
The homeowners affected are not merely speculative investors; they are pioneers who allocated personal savings towards a cleaner future, believing in the stability of the offered incentives. Their frustration is not just about economics, but about a broken promise.
There is still time to avert this crisis. A balanced solution is imperative:
· Grandfathering Existing Adopters: A non-negotiable first step is guaranteeing existing solar owners the original tariff terms for a legally binding period. This protects past investments and upholds contractual fairness.
· Phased and Transparent Transition: Any new tariff structure must be introduced gradually with extensive consultation, allowing the market to adapt. Future policies should include locked-in minimum guarantee periods.
· Value Recognition: New tariffs must fairly recognize the full value rooftop solar provides to the entire grid not just the wholesale cost of electricity, but its role in avoided infrastructure costs, reduced transmission losses, and environmental benefits.
· Support for Storage: Encourage the next phase of adoption by incentivizing battery storage, which allows homeowners to use more of their own solar energy and provides even greater grid stability.
Rooftop solar should be a win-win for the planet, for the grid, and for the people who champion it. The proposed tariffs, as they stand, risk making it a lose-lose proposition. It is not too late to align policy with the original vision of a prosperous, clean energy future, ensuring that the sun shining on our roofs remains a source of hope, not regret.
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