COLOMBO — Renewable-energy representatives accuse the Government of disadvantaging households and smaller solar businesses while major corporate groups expand their presence in battery storage and electricity generation.
Sri Lanka’s decision to discontinue Net Metering and Net Accounting for new rooftop solar connections has prompted warnings that thousands of workers and small businesses could lose their livelihoods, as renewable-energy representatives accuse the Government of adopting policies that favour large corporate investors.
The Renewable Energy Development Front has warned that approximately 80,000 people connected with the solar industry have already been affected, while another 20,000 jobs could be at risk.
Its representatives raised these concerns during a meeting with the Mahanayake Theras of the Malwatta and Asgiriya Chapters on October 27.
The organisation also alleges that small and medium-sized solar enterprises have declined sharply following changes to the regulatory framework.
The controversy has extended to the Government’s treatment of battery imports and the awarding of large-scale energy-storage contracts, with critics questioning whether smaller investors are being placed at a disadvantage compared with established corporate groups.
Net Plus Becomes Mandatory for New Solar Connections
The immediate dispute concerns a directive issued by Acting Energy Ministry Secretary G.M.R.D. Aponsu on September 11, 2026, requiring new on-grid rooftop solar agreements to operate under the Net Plus scheme.
The instruction implements provisions of the National Electricity Policy gazetted in March 2026.
Under the directive, Net Metering and Net Accounting will no longer be offered for new rooftop installations or extensions of existing agreements.
Current agreements remain valid under their original terms until expiry, while applicable transitional arrangements protect approvals and grid clearances already issued before the specified cutoff.
New agreements and extensions are also subject to a maximum duration of 12 years.
The shift changes the financial arrangements available to households and businesses investing in rooftop generation.
Under Net Metering, electricity exported to the grid can offset electricity imported during the billing period.
Net Accounting similarly allows consumption to be offset while providing compensation for eligible surplus generation.
Net Plus operates differently. Electricity generated by the rooftop installation is measured and compensated separately, while the customer pays the applicable retail tariff for electricity consumed.
For households that installed solar panels primarily to reduce their electricity bills, this distinction can have substantial financial implications.
How the New Billing Method Affects Household Savings
Industry critics argue that Net Plus can reduce the financial attractiveness of rooftop solar for customers who previously benefited from offsetting their electricity consumption.
The source commentary illustrates the difference using a five-kilowatt solar installation producing approximately 550 units of electricity per month.
Under a Net Metering arrangement, a household importing and exporting equivalent amounts of electricity over the relevant billing period could potentially offset much of its energy consumption.
Under the example presented by critics, a customer operating under Net Plus would receive approximately Rs. 13,000 for exporting 550 units while facing an electricity bill of around Rs. 48,000 for purchasing an equivalent quantity.
The difference would be approximately Rs. 35,000.
These figures are illustrative rather than a verified quotation for every five-kilowatt installation. Actual charges and payments depend on the applicable retail tariff, feed-in rate, consumption pattern and system performance.
The Rs. 35,000 difference should also not be described as a monthly financial loss without accounting for investment costs, electricity generated and consumed directly, and the customer’s position before installing solar.
Nevertheless, the example demonstrates why billing arrangements are an important factor in determining whether rooftop solar investments remain commercially attractive.
Households frequently finance installations through savings or bank loans, expecting lower long-term electricity expenditure to offset the initial cost.
A reduction in anticipated savings could discourage future installations and affect demand for smaller solar contractors.
Renewable Energy Front Warns of Widespread Job Losses
Renewable Energy Development Front Chairman H. P. Ruwan Chamara, Secretary Sajith Jayawardena and Treasurer Dhananjaya Jayawardena raised the industry’s concerns during their meeting with the senior Buddhist prelates.
According to the organisation, approximately 80,000 livelihoods have been affected by the changes, with another 20,000 workers facing potential unemployment.
Representatives also claimed that the number of active small and medium-scale businesses in the sector had fallen from more than 1,150 to approximately 600.
The figures have not been independently reconciled with official business-registration, employment or tax records.
Nevertheless, the concerns reflect the vulnerability of businesses whose operations depend on continued demand for household and commercial rooftop installations.
Smaller solar enterprises frequently provide equipment installation, electrical services, maintenance and related technical support.
A contraction in new connections could affect businesses across that supply chain.
The organisation further stated that it had sent 34 letters requesting an opportunity to discuss the situation with President Anura Kumara Dissanayake but had not secured a meeting.
Its representatives maintain that policy decisions affecting a large number of smaller investors should be reviewed through consultation with the affected industry.
Battery Taxes Add to Concerns Over Unequal Treatment
The Government has defended the need to manage increasing amounts of solar electricity entering the national grid.
High daytime solar generation can create technical challenges when electricity production exceeds local demand or when distribution infrastructure cannot accommodate additional power flows.
Battery storage is one possible response because it allows electricity produced during daylight hours to be stored for later use.
Industry critics argue that households should therefore receive greater encouragement to install batteries rather than face financial barriers to doing so.
The source commentary alleges that smaller household battery systems face import taxes totalling approximately 52%, while large-scale battery systems receive exemptions.
The precise 52% effective rate has not been independently established for every relevant category of domestic battery.
However, President Dissanayake acknowledged the difference in tax treatment during the Sri Lanka Economic and Investment Summit on October 12.
He said concessions were available for battery-storage systems exceeding one megawatt, while smaller systems remained subject to taxation.
The President also indicated that the Government was considering extending concessions to smaller solar-energy users.
He identified difficulties in distinguishing batteries used specifically for solar electricity storage from other battery technologies.
The proposed changes could address one of the central concerns raised by households and smaller operators, although the details and implementation timetable have not yet been confirmed.
Corporate Battery Contracts Come Under Scrutiny
Criticism of the solar policy has also focused on the expanding involvement of major private companies in renewable-energy generation and battery storage.
Businessman Dhammika Perera is associated with the Hayleys Group, whose Hayleys Solar business operates in Sri Lanka’s renewable-energy equipment and installation market.
WindForce PLC, meanwhile, is a major listed renewable-energy company whose sponsors include the Akbarally family and the Hirdaramani Group.
The involvement of these companies in renewable energy is established, but that does not by itself demonstrate improper influence over government policy.
Frontline Socialist Party Education Secretary Pubudu Jayagoda has questioned the concentration of battery-storage project awards among connected businesses.
According to the source commentary, Jayagoda claimed that one business network obtained 13 of 16 units in the first procurement programme and 23 of 25 in a subsequent tender.
Publicly available corporate disclosures support a substantial concentration of awards in the initial 160-megawatt battery-storage procurement.
WindForce announced in February 2026 that it had received letters of award for 12 projects with a combined capacity of 120 megawatts and 480 megawatt-hours.
Subsequent reporting identified a WindForce-Vidullanka-related portfolio of 13 facilities representing 130 megawatts.
These developments provide grounds for examining market concentration and the competitiveness of procurement arrangements.
However, the reported 23-of-25 figure for the second tender has not been independently established through a complete set of procurement records.
Nor does the available evidence demonstrate that the companies secured contracts through unlawful political intervention.
Questions about procurement concentration should be addressed through transparent disclosure of tender evaluations, beneficial ownership, prices and project-award decisions.
Allegations of Political Favouritism Require Evidence
The source commentary and social media discussions allege that government decisions are helping major renewable-energy businesses while undermining smaller solar operators.
Some critics specifically accuse the administration of favouring corporate groups associated with Dhammika Perera and the Akbarally family.
Those accusations remain unproven.
The existence of substantial corporate investments, shared business interests or significant tender awards does not establish that the Government deliberately designed its rooftop solar policy to benefit particular individuals.
A proper examination would require evidence of political intervention, irregular procurement decisions, undisclosed conflicts of interest or departures from established tender procedures.
The Government’s stated concern about grid stability also cannot be dismissed without technical assessment.
At the same time, legitimate grid-management requirements do not remove the need to examine whether regulatory changes distribute financial burdens fairly between households, small businesses and larger investors.
Solar Industry Calls for a Review of Energy Policy
Sri Lanka’s renewable-energy expansion has depended on investment from households, commercial premises, developers and independent power producers.
The source commentary credits smaller investors with helping add more than 2,500 megawatts of capacity to the national electricity system over the past decade, although that figure has not been independently verified as rooftop solar capacity alone.
It also claims that distributed solar generation has produced foreign-exchange savings equivalent to approximately Rs. 1.5 billion daily, a figure that requires supporting calculations before it can be accepted as an established economic benefit.
Despite uncertainty surrounding these estimates, rooftop solar has played a substantial role in increasing Sri Lanka’s renewable electricity generation.
The industry’s representatives are calling for a policy framework that preserves incentives for smaller investors while addressing the technical requirements of a changing electricity system.
That debate now centres on three questions: whether Net Plus provides reasonable financial returns, whether smaller battery systems should receive concessions comparable to larger installations, and whether renewable-energy procurement offers fair opportunities to competing businesses.
Any review will need to balance electricity-system reliability, consumer affordability, public expenditure and the long-term viability of distributed renewable generation.
For households and small enterprises that have already invested in solar technology, the outcome will determine whether they can continue participating meaningfully in Sri Lanka’s energy transition.
