The Sri Lankan Ministry of Finance announced that the Asian Development Bank (ADB) has provided $50 million in funding for the implementation of the Soorya Bala Sangramaya solar project.
The loan program is designed to help homeowners and businesses install rooftop PV systems under net metering and net accounting mechanisms. “The project is expected to add 50 megawatts of installed capacity to the national grid,” the ministry said in a statement.
The goal of the Soorya Bala Sangramaya Solar Project is to increase 200 megawatts of solar energy by 2020 and 1,000 megawatts of solar installed capacity by 2025. Originally designed for power consumers with high electricity bills, the program was extended to low-income families in March 2017.
The ministry said, “Families and entrepreneurs will receive a maximum credit line of up to 7.5 million rupees (about 45,000 US dollars), and the loan interest rate is 8% per year.” Last March, the maximum amount of loans was 350,000 rupees, and the highest preferential interest rate was 6. %.
As stated in Sri Lanka's Energy Sector Development Plan 2015-2025, solar power generation in the island country is expected to meet 32% of its annual electricity demand of approximately 10,500 GW, but so far only 0.01% of this potential has been achieved. Overall, the goal is to reduce the carbon footprint by 5% by 2025.