Impact of Proposed FIT Change and Emerging Business Opportunities in Solar + Storage

The Government of Sri Lanka (GoSL) is currently steering renewable energy policy to encourage energy exports during the evening peak, while disincentivizing excess solar generation during the daytime by adjusting the Feed-in Tariff (FIT) rates. This strategic shift reflects a clear response to the mismatch between peak solar generation and national electricity demand.

As a result, future solar deployment models—particularly for residential and commercial customers—must adapt by integrating hybrid systems with battery storage. These systems allow stored solar energy to be exported during high-demand evening hours, thereby aligning consumer incentives with national grid requirements.

Time-of-Use (ToU) Tariffs and System Configuration

In this evolving landscape, consumers will increasingly adopt ToU tariffs. The ability to store energy during the day and discharge during peak evening periods will not only ensure energy security for the user but also create new revenue opportunities. Battery-integrated hybrid systems will become a fundamental enabler of this model.

However, standard hybrid systems with ideal battery capacity may not be financially feasible for all users. A more flexible approach, involving lower battery capacities supported by intelligent control and monitoring software, can provide a more accessible pathway. Such systems can dynamically manage energy modes based on user consumption patterns, solar availability, and tariff signals—making it possible for more users to participate in this new energy economy.

Business Opportunities and Models

From this shift, several key opportunities emerge:

1. Residential and C&I Energy Arbitrage By enabling stored solar energy exports during evening peaks, consumers can maximize earnings and reduce payback periods for their investment in solar plus storage—typically between 7 to 10 years, depending on system design and usage.
2. Roof Rental and Investor-Driven Models Investors can deploy systems on rented rooftops, leveraging peak export FITs to generate income. Battery-backed solar systems will be essential to ensure peak-time exports.
3. Flexible Battery Deployment Strategy Consumers can begin with 50% of the ideal battery capacity based on budget, while software and IoT-based management systems ensure continued optimization and operational reliability. This modular approach lowers the entry barrier and accelerates adoption.
4. Smart Energy Management Platforms Systems capable of 24/7 monitoring and dynamic control will be critical. Such platforms allow utilities and users to manage grid compliance, battery health, and system performance while reducing manual interventions and downtime.

Conclusion

The proposed FIT revisions create both a challenge and an opportunity. With the right hybrid system configurations and intelligent control platforms, a new, distributed, and profitable solar plus storage ecosystem can be developed in Sri Lanka. Stakeholders who adapt early to this model will not only align with national energy policy but also benefit from long-term financial and environmental returns.

If you are interested in exploring business potential with the anticipated changes in RE landscape in Sri Lanka, please feel free to contact me on +94773124844 or by email: jeremyF@smarthome.lk