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Govt. introduces incentives to ensure victory in ‘Battle for Solar Energy’
Nearly three months after the Government’s ambitious community-based solar power generation programme was initiated, authorities are upbeat about the response for it. According to officials, subscribers to the project have so far accounted for about 15 Megawatts (MW) of solar power. If the trend continues, they claim the target of adding 200MW to the national grid by 2020 is within reach. The next target is to increase this to 1000MW by 2025.
Power and Renewable Energy Deputy Minister Ajith P. Perera told the Sunday Times that about three MW of solar generated electricity had already been connected to the national grid since the start of the ‘Soorya Bala Sangramaya’ (Battle for Solar Energy) was launched in September. About seven MW are currently being connected, he added.
The goal of the project, launched in collaboration with the Sri Lanka Sustainable Energy Authority (SLSEA), the Ceylon Electricity Board (CEB) and the Lanka Electricity Company (Private) Limited (LECO), is to “promote the setting up of small solar power plants on the rooftops of households, religious places, hotels, commercial establishments and industries,” according to the project’s website.
In a bid to persuade more consumers to switch to solar energy, the Government has already introduced several incentives, including removing taxes imposed on solar panels and inverters, while in his 2017 Budget proposals, Finance Minister Ravi Karunanayake encouraged banks to introduce a credit scheme for consumers with a monthly electricity bill of over Rs.2000. The Government hopes to encourage these households to change to solar energy. The Finance Minister stated that the Government would bear 50 percent of the interest cost on a credit limit of Rs. 150,000. For this purpose, the Government is proposing to allocate Rs. 1,500 million.
This week, LECO also teamed up with the National Savings Bank (NSB) to introduce a concessionary loan scheme for its customers to purchase solar panels for rooftop solar electricity generation system.
Consumers can opt for the ‘Battle for Solar Energy’ programme through one of several options. Under the Net Metering scheme, the consumer has to pay only for the net amount of electricity that was consumed. If the customer’s electricity production exceeds consumption of the premises, that balance amount can be carried forward for future use to up to 10 years. There will be no fee levied for the excess electricity produced.
Under the Net Accounting scheme, if the electricity generation of rooftop solar panels is greater than the consumption, the consumer will be paid for the excess at the rate of Rs.22 per unit for the first seven years and Rs.15.50 per unit from the eighth year onward. If the consumption is greater than the generation, the consumer shall pay for the excess consumption according to the existing electricity tariff structure.
Under the third category known as Net Plus, the Government would purchase the total amount of electricity by the rooftop solar panel system. The customer has to pay for the electricity consumed according to the existing tariff.
Meanwhile, the Ministry of Power and Renewable Energy has also sought Cabinet approval to call for tenders to set up 60 1MW solar power plants in the country. Deputy Minister Perera told the Sunday Times that they hoped to call for tenders by February, next year.
The Government has already laid out a policy to increase the existing 50 percent of electricity generated through renewable energy sources to 60 percent in 2020 and to increase it further up to 70 percent by 2030. The ultimate goal is to generate the country’s total energy requirement through renewable and other indigenous energy resources by 2050.
The ‘Battle for Solar Energy’ is a concept of the Sri Lanka Sustainable Energy Authority (SLSEA). Its Chairman Keerthi Wickramaratne explained that the existing net metering scheme only reached a select segment of society and did not contribute much to the national grid. “As such, the Minister asked us to come up with a project that will help us to involve a much larger segment of the population and to make solar energy more attractive to consumers.”
According to Mr. Wickramaratne, the most notable response to the new drive has come from middle class households. Both the consumers and the country will be ultimate beneficiaries of the project, he stressed. About 45 percent of the country’s total expenditure is devoted to importing energy and this was already a heavy burden on the economy. If more people revert to solar energy, they stand to not just earn an income, but to contribute to reducing the cost of living and minimizing the impact on the environment, he opined.
He revealed the SLSEA was currently trying to negotiate with more banks to introduce loan schemes for rooftop solar systems.