President Anura Kumara Dissanayake proposed a subsidy of Rs. 25,000 per kilowatt-hour (kWh) for households that install battery storage with new rooftop solar systems, in the 2027 Budget presented in Parliament on Thursday.
The subsidy applies to systems with up to 10 kWh of storage, which caps the payment at Rs. 250,000 per household. It covers households installing new rooftop solar under the Net Plus scheme, and Rs. 3.5 billion has been set aside for the programme.
The President also proposed removing the 10 percent Port and Airport Development Levy (PAL) on imported batteries used for solar energy storage. He said this would give an additional tax benefit of roughly Rs. 4,000 to Rs. 5,000 per kWh on top of the direct subsidy.
The President said the measures were intended to encourage households to adopt battery storage, strengthen energy security and improve the stability of the national grid by reducing imbalances between supply and demand.
Background
Rooftop solar systems generate most of their power during the day, while household demand usually peaks in the evening. A battery stores surplus daytime output for use later, which reduces the strain on the grid when the sun is not shining.
The battery measures were part of a wider energy package in the Budget. The President said fuel storage capacity would be expanded to hold supplies sufficient for 45 days. Rs. 22.34 billion was allocated for a jet fuel pipeline from Muthurajawela to Bandaranaike International Airport and fuel storage with a capacity of 92,000 metric tonnes.
The Government has also called for tenders for the Rs. 16,332 million Kolonnawa-to-Harbour Pipeline Project, which aims to cut fuel unloading time from 96 hours to 48 hours. The project is expected to take 18 months. Each day of delay currently costs the country about US$30,000 in payments to shipping companies, according to the figures given in the Budget speech.
On the electricity side, the President announced free smart meters for 300,000 consumers using more than 180 units of electricity. All Lanka Electricity Company (LECO) consumers using more than 120 units will also receive smart meters.
What it means
For a household planning to add solar panels, the proposals would lower the upfront cost of a battery in two ways: a direct payment of up to Rs. 250,000 and a lower import levy that the President put at Rs. 4,000 to Rs. 5,000 per kWh. The subsidy is limited to new rooftop installations under the Net Plus scheme, so households with existing systems are not covered by the announcement.
Budget proposals are not law until Parliament passes them, and the Budget debate is still to come. Households should check the final terms, including how to apply, once the measures are approved.
