Energy Minister Anura Karunatilaka defended the government’s replacement of net metering with a “Net Plus” system on Thursday, telling Parliament the new model protects ordinary electricity consumers from subsidising rooftop solar owners.

The exchange followed a question from ITAK MP Rasamanickam Shanakkiyan, who asked whether Sri Lanka can realistically meet its renewable energy targets after the changes to net metering and net accounting, NewsFirst reported at 2.30 p.m.

The Minister’s argument

Karunatilaka said the government had examined the shortcomings of net metering and net accounting at length.

His case rests on a timing mismatch. Electricity generated by rooftop panels during the day is produced at relatively low cost. Electricity supplied to those same customers at night often comes from costlier sources of generation.

Under the previous arrangement, he said, those additional costs were effectively shifted onto consumers who do not own solar panels.

Net Plus was introduced as a middle ground — letting solar producers earn a fair return while ensuring other consumers are not unfairly burdened.

He also disclosed that the government is exploring a further model: one that would let solar users offset the electricity they consume during the day against what they supply to the grid in the same period, with payment made only on excess units exported. That, he said, would remove concerns about daytime power use while still addressing the day-night cost difference.

The criticism

Shanakkiyan warned that the policy changes could discourage households and businesses from investing in rooftop solar.

Many companies in the solar industry have already become disillusioned, he said, with some facing severe business uncertainty following the end of the previous net metering arrangements. He argued the change could make the government’s own renewable targets harder to reach, while creating an unfair situation for consumers who had already invested heavily in rooftop installations.

That last point is the sharpest one, and the filing does not record the Minister answering it directly: households that bought systems under net metering did so on the economics of the scheme being withdrawn.

The targets

Karunatilaka said the government remains committed to expanding renewable capacity, and gave a three-year build-out:

YearSolarWind
2027642 MW50 MW
2028300 MW160 MW
2029450 MW160 MW

That totals 1,392 MW of solar and 370 MW of wind over three years. The filing does not say how much of it is utility-scale as against rooftop — the distinction on which Shanakkiyan’s objection turns, since the policy change affects rooftop investment specifically.

Context

The net metering changes have been contested since the autumn. This desk has previously reported the Energy Ministry’s denial that rooftop solar was being curtailed, opposition criticism over net metering and the regulator’s role, and an ADB, EU and Japan financing package for rooftop solar and net metering signed in October.

Not reported

The filing does not explain how Net Plus actually works — what rate exported units are bought at, whether it differs by time of day, or how it compares in rupee terms with what net metering paid.

It does not say when the change took effect, whether existing net metering customers are grandfathered, how many rooftop installations exist, or give a timeline for the additional model the Minister said is being explored.