Sri Lanka proposes BESS-inclusive feed-in tariffs, draws pricing pushback

The Public Utilities Commission of Sri Lanka (PUCSL) has proposed feed-in tariffs for battery energy storage, with an engineer from the National System Operator (NSO), the entity responsible for operating Sri Lanka’s power system, warning the rates run well above prices already achieved through competitive tenders.

PUCSL published its renewable energy feed-in tariff (FIT) review in July, opening a stakeholder consultation that runs through Sept. 8. The review proposes FITs for rooftop solar systems paired with battery energy storage systems (BESS), as well as for utility-scale ground-mounted and floating solar plants with BESS. The review was launched under Sri Lanka’s electricity and utility regulatory laws.

Under the proposal, rooftop solar-plus-BESS systems up to 10 kW would receive a feed-in tariff of up to LKR 61.12 ($0.19)/kWh during a “prioritized feed-in time” window from 17:30 (SLST) to 21:30, dropping to LKR 17.64/kWh at other times for the first 15 years of the power purchase agreement.

Larger rooftop capacity bands would receive tariffs as high as LKR 66.53/kWh at prioritized times. Utility-scale ground-mounted solar plants with BESS would receive LKR 51.55/kWh during prioritized periods and LKR 21.58/kWh at other times. Floating solar plants with BESS would receive LKR 60.26/kWh during prioritized periods and LKR 29.42/kWh at other times.

An NSO engineer told The Sunday Morning, a Colombo-based weekly, that Sri Lanka’s proposed BESS tariffs run well above competitive tender prices. Another source cited by the same publication said an administratively set tariff is the only practical way to keep pace with Sri Lanka’s rising solar integration and evening demand peaks.

PUCSL’s proposal does not include feed-in tariffs for dispatchable BESS-paired power plants in this review, due to “uncertainty surrounding the readiness of the utility in connecting BESS based dispatchable power plants.”

The review comes as Sri Lanka’s rooftop solar base continues to grow rapidly. State-run Ceylon Electricity Board (CEB) reported 1,935 MW of rooftop solar capacity across 108,979 connections by the end of 2025, up from 1,141 MW previously, with rooftop generation reaching 1,674 GWh in 2025, a 93% increase year on year.