Solar Roof Top Generation, Marginal Cost, Financial Impacts on the Utility of Sri Lanka

Abstract

The intensity of solar radiation in Sri Lanka is 1,247-2,106 kWh/m2 per annum (SEA, 2014). There are existing solar generation capacities of 177 MW by using solar roof top systems and 51 MW of the utility scale solar plants in the country as at 28th March 2019. The Government of Sri Lanka(GOSL) introduce Building Integrated Photo Voltaic program since 2009 basically to bank the surplus of electricity units with the Utility. In 2016 GOSL introduced cash payback method for surplus energy generated by Roof Top Solar installations. Some of the stakeholders of the electricity sector argue that the Roof Top Solar generation program has negative financial impact on the financial position of the utility. The impact of the Solar Roof Top program on revenue of the Utility and the customer tariff system has been studied. Results show that Feed in Tariff of the Solar Roof Top is comparatively low with most of the thermal power generation. According to the findings of the study it can be concluded that the financial impact of the program is beneficial to the economy as a whole, but marginally negative to the short terms cash flow of the utility. Anyhow it is seen that such utility centric negativity can be ameliorated though due tariff structure. The government has to consider about the electricity policy of customer tariff in order to provide the concessions only for the needy people.