Sri Lanka's Old Solar Energy Policy Forced Non-Solar Households to Subsidise Nighttime Power Costs, Minister Reveals

Sri Lanka's previous solar energy regulations were fundamentally flawed in a way that placed an unfair financial burden on ordinary electricity consumers, a government minister has revealed, shedding light on why the country's power pricing framework required urgent reform.

Inequitable Cost Distribution Under Old Framework

The minister explained that under the former solar energy policy, households and businesses that did not have solar panels installed were effectively made to shoulder the higher costs associated with nighttime electricity generation — a period during which solar power cannot be produced and the national grid must rely on more expensive energy sources.

This arrangement meant that consumers without access to solar technology were disproportionately burdened by costs that arose partly because of benefits extended to solar panel owners, raising serious questions about fairness within the country's electricity pricing structure.

Why Nighttime Power Costs More

Electricity generated during nighttime hours typically carries a higher cost because it cannot be sourced from solar installations and must instead come from thermal or other conventional power plants, which are generally more expensive to operate. When solar users were credited generously for their daytime contributions to the grid without fully accounting for their nighttime consumption costs, the financial gap was passed on to other consumers.

Push for Fairer Energy Policies

The minister's remarks signal the government's intention to restructure the solar energy regulatory environment to ensure that all consumers are treated equitably, and that the true costs of electricity generation and distribution are reflected accurately across different categories of users.

Sri Lanka has been working to expand its renewable energy capacity as part of broader efforts to reduce dependence on imported fossil fuels and ease pressure on the country's foreign exchange reserves. However, officials now appear determined to ensure that the transition to cleaner energy does not come at an unjust cost to those who cannot afford solar installations.

Implications for Consumers

For the millions of Sri Lankan households that rely solely on the national grid, this acknowledgement from the minister offers some reassurance that policymakers are aware of the inequities built into past energy regulations. Revised solar energy rules are expected to introduce a more balanced approach to cost-sharing between solar and non-solar consumers.

As Sri Lanka continues navigating its post-economic crisis recovery, ensuring a fair and sustainable energy pricing policy will be critical to maintaining public trust and supporting long-term economic stability.