📈 Solar Power: The Future of Sri Lanka’s Energy Landscape

Sri Lanka is pivoting toward solar energy to meet a projected 40% increase in electricity demand by 2030, reducing its heavy 44.8% reliance on costly fossil fuels. • Market Growth & Capacity • Rooftop solar capacity surged by 82% from 930 MW (2024) to 1,700 MW (mid-2025). • The rooftop solar asset value is currently estimated at Rs. 100–120 Bn, expected to exceed Rs. 200 Bn by 2030. • Current solar contribution to the national grid stands at 13.7%. • Sector Breakdown • Residential segment: Dominates the market with 50% of total installations, driven by citizens seeking secondary income. • Industrial & Commercial: The commercial sector remains the smallest at approximately 14%. • Market Penetration: Only 1% of the country’s 7 million buildings currently utilize solar, indicating massive untapped potential. • Industry Structure • The market is highly competitive with ~350 registered suppliers. • 15% market share is held by a single large player; 70% is fragmented among 100+ small-scale providers. • Economic Impact • The transition promises energy independence, employment generation in technical maintenance/installation, and significant forex savings by offsetting fuel imports. • Challenges include high initial capital costs, grid integration hurdles, and policy inconsistency.