Sri Lanka’s Cabinet has approved a sweeping revision to rooftop solar power tariffs effective June 16, 2025. Under the new pricing, solar unit rates now range from Rs. 20.90 for small-scale (0–5 kW) producers to Rs. 14.46 for large-scale installations (1 MW+), aiming to streamline energy costs and boost renewable adoption. However, those who paid system clearance fees before June 16 will be exempt from the new rates. Power purchase agreements signed under this structure will be locked in for 20 years.
In a significant policy update, the Sri Lankan government has revised the payment rates for rooftop solar power (RTSPV) systems, bringing down the tariff for large-scale producers to as low as Rs. 14.46 per unit. The changes were approved by the Cabinet on June 16, 2025, and officially communicated by the Ministry of Energy via letter PE/DEV/03/01 on June 20, 2025.
The revised rates, now in effect, apply to all new solar applicants and system extension requests made on or after June 16. The new tariff structure is designed to encourage sustainable energy while reducing public expenditure on high-cost energy buybacks.
Here’s the full breakdown of the updated solar rates:
- 0 to 5 kW – Rs. 20.90
- 5 kW to 20 kW – Rs. 19.61
- 20 kW to 100 kW – Rs. 17.46
- 100 kW to 500 kW – Rs. 15.49
- 500 kW to <1 MW – Rs. 15.07
- 1 MW and above – Rs. 14.46
Any applicant who paid the system clearance fee before June 16, 2025, will continue under the previous rates, and their applications will be processed by the Ceylon Electricity Board (CEB) by July 31, 2025.
Importantly, once a Power Purchase Agreement (PPA) is signed, the rate will be locked in for a 20-year term, offering long-term predictability to investors and consumers alike.
All relevant CEB engineers and officials have been instructed to implement this directive without delay.
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