Introduction

In an effort to promote renewable energy, Sri Lanka has launched an ambitious scheme led by The Ministry of Power and Renewable Energy, in collaboration with the Sri Lanka Sustainable Energy Authority (SLSEA), the Ceylon Electricity Board (CEB), and Lanka Electricity Company (Private) Limited (LECO). This initiative encourages homeowners and businesses to install rooftop solar power systems, allowing them to not only save on their energy bills but also generate passive income by selling electricity back to the grid.

In this article, we’ll explore how you can make money with solar power in Sri Lanka, and how this investment could offer significantly higher returns than traditional savings methods like fixed deposits.

How Solar Power Works

A solar power system installed on your rooftop generates electricity by converting sunlight into usable energy. Thanks to technological advancements, solar panels have become more efficient and affordable. In fact, a single solar panel in Sri Lanka can generate, on average, 1.9 kW of electricity per day. For larger systems, this translates into significant financial savings and income potential.

Options for Monetizing Solar Energy

Sri Lanka offers three main schemes that allow you to either save or make money from solar:

Net Metering

With net metering, all the electricity generated by your solar panels offsets the electricity you consume on-site. Any surplus electricity is carried forward to future billing cycles, which can help reduce your electricity bill to zero over time. This is a great option for those looking to save on their energy costs.

Net Accounting

Net Accounting allows you to sell any excess electricity generated by your solar panels. You’ll be compensated at Rs. 27.06 per kWh (or Rs. 23.17 per kWh if your system generates more than 500 kW). This provides an opportunity to not just break even on your energy costs, but to actually profit from your solar setup.

Net Plus

In the Net Plus scheme, all of the electricity generated by your solar system is exported to the national grid, and you are paid for every unit produced. Compensation rates are the same—Rs. 27.06 per kWh (or Rs. 23.17 for systems over 500 kW). This option turns your solar panels into an income-generating asset.

Cost of Installing a Solar System (Prices as of 10th September 2024)

Before diving into the earnings potential, it’s important to understand the upfront cost of installing a solar system. Here are the typical prices for residential and small commercial systems:

• Single Phase 5kW System

  : Rs. 980,000

• Three Phase 10kW System

  : Rs. 1,790,000

• Three Phase 20kW System

  : Rs. 2,750,000

ROI (Return on Investment) Calculations

Let’s take a closer look at how these systems can earn you money, using the Net Plus scheme where all the electricity is sold to the grid. For these calculations, we assume that each panel generates 1.9 kW of electricity per day.

5kW System ROI

• Number of Panels

  : 10

• Total Daily Production

  : 1.9 kW × 10 panels = 19 kW per day

• Annual Production

  : 19 kW/day × 365 days = 6,935 kWh per year

• Annual Earnings

  : 6,935 kWh × Rs. 27.06 = Rs. 187,702.10 per year

• ROI

  : (Rs. 187,702.10 / Rs. 980,000) × 100 =

  19.15% per year

10kW System ROI

• Number of Panels

  : 20

• Total Daily Production

  : 1.9 kW × 20 panels = 38 kW per day

• Annual Production

  : 38 kW/day × 365 days = 13,870 kWh per year

• Annual Earnings

  : 13,870 kWh × Rs. 27.06 = Rs. 375,404.20 per year

• ROI

  : (Rs. 375,404.20 / Rs. 1,790,000) × 100 =

  20.97% per year

20kW System ROI

• Number of Panels

  : 38

• Total Daily Production

  : 1.9 kW × 38 panels = 72.2 kW per day

• Annual Production

  : 72.2 kW/day × 365 days = 26,343 kWh per year

• Annual Earnings

  : 26,343 kWh × Rs. 27.06 = Rs. 712,656.58 per year

• ROI

  : (Rs. 712,656.58 / Rs. 2,750,000) × 100 =

  25.93% per year

Comparison to Bank Interest Rates

Currently, even fixed deposits in Sri Lanka offer less than 10% interest annually, which means your savings will grow at a relatively slow rate. In contrast, investing in a solar power system offers an ROI of up to 25.93% per year, depending on the size of the system. This makes solar one of the best investment opportunities available in the country today.

Long-Term Profit Potential

If we extend these calculations over several years, the benefits become even clearer. For example, with a 5kW system, you’ll earn Rs. 187,702.10 annually. Over the course of 5 years, that’s Rs. 938,510.50, nearly recovering your full initial investment while continuing to generate profits for years to come. After your system has paid for itself, it essentially becomes a money-printing machine, requiring no additional effort from you.

Conclusion

With government-backed initiatives and attractive ROI figures, solar energy is not just environmentally friendly but also financially rewarding in Sri Lanka. Whether you choose to offset your electricity bill with Net Metering, sell surplus power with Net Accounting, or generate passive income with Net Plus, solar power offers a unique opportunity to make money by doing nothing more than harnessing the sun’s energy.

With returns far outpacing traditional savings methods, now is the perfect time to invest in solar and start earning without lifting a finger!

*Please note that the calculations used within this article may vary from system to system depending on location and solar panel used.