Solar PV Market Potential in Sri Lanka: Facts and Figures

Sri Lanka is on the brink of a renewable energy transformation, with solar photovoltaics (PV) playing a critical role in the nation’s energy future. As detailed in the Long-Term Generation Expansion Plan (LTGEP) 2023–2042 by the Ceylon Electricity Board (CEB), the country is gearing up to meet ambitious renewable energy targets, supported by robust policy frameworks and growing demand for electricity. Here’s a closer look at the solar PV market potential in Sri Lanka:

1. Ambitious Renewable Energy Targets

Sri Lanka’s government has set a target to achieve 70% renewable energy (RE) in electricity generation by 2030 and to become carbon-neutral by 2050. Solar PV is central to these goals as a cost-effective and scalable solution.

• Between 2023 and 2042, substantial investments are planned to expand the country’s grid-connected and rooftop solar PV systems.

• The LTGEP forecasts up to 350 MW of fully facilitated grid-connected solar PV additions per year in the later stages of the plan, supplemented by utility-scale battery storage systems.

Up to 350 MW of grid-connected solar PV is planned annually, supported by battery storage.
Source: LTGEP 2023–2042, CEB.

2. Rapidly Growing Energy Demand

Sri Lanka’s electricity demand is projected to grow 5.3% annually through 2047, with daytime demand surpassing nighttime post-2026, highlighting the importance of solar energy.
Source: LTGEP 2023–2042, CEB.

3. Economic and Environmental Benefits

Investing in solar PV offers dual advantages: economic sustainability and environmental conservation.

Cost Efficiency: The declining costs of solar PV technology make it an economically attractive option.

Environmental Impact: Solar PV contributes significantly to reducing greenhouse gas emissions, aligning with Sri Lanka’s climate action commitments.

4. Supportive Policy Environment

The LTGEP and national policies have paved the way for large-scale solar adoption. Key enablers include:

• Financial Incentives: Subsidies and feed-in tariffs for solar PV systems.
• Regulatory Support: Policies favoring grid integration of renewables and reforms to encourage private investments.
• Energy Storage Integration: Utility-scale battery energy storage systems are being introduced to complement solar PV installations, ensuring grid stability and energy reliability.

5. Market Opportunities for Investors

The solar PV sector presents lucrative opportunities for:

• Utility-Scale Solar Developers: Supported by government-backed projects for grid-scale solar parks.
• Commercial & Industrial (C&I) Solar Adopters: With energy cost optimization being a priority for businesses, rooftop solar and private power purchase agreements (PPAs) are gaining traction.
• Residential Solar Installations: Distributed solar systems continue to attract interest, backed by consumer-focused incentives.

Unlock the Potential of Sri Lanka’s Solar PV Market

Solar energy is poised to lead Sri Lanka’s renewable energy revolution, offering economic growth and environmental sustainability. To maximize your investment and ensure the success of your solar PV project, it’s essential to engage an experienced partner who understands the nuances of the local energy landscape.

EnerGulf provides expert owner’s engineering services, ensuring your solar PV projects are optimized for performance, compliance, and financial returns.

Take the Next Step
Assess your solar project needs today by completing this online assessment form.

For personalized guidance, contact Srinath at +94 76 369 8979 or info@energulf.co. Let’s power Sri Lanka’s energy future together!