Budget 2027 to bring concessions for home solar battery systems
Budget update, November 12, 2026: The 2027 Budget proposes support for battery storage installed with new household rooftop solar systems under the Net Plus scheme. The proposed subsidy is Rs. 25,000 for each kilowatt-hour (kWh) of storage, with support capped at 10 kWh, or Rs. 250,000 per household.
The programme has a proposed allocation of Rs. 3,500 million. A separate proposal would remove the 10% Port and Airport Development Levy (PAL) on imported batteries used to store solar electricity. The President told Parliament this tax change would provide a further benefit of about Rs. 4,000 to Rs. 5,000 per kWh, in addition to the direct subsidy.
The stated aim is to encourage renewable electricity and improve grid stability by reducing imbalances between generation and demand. These are Budget proposals, not confirmation that applications are open or that a payment has been approved for any household. The reports did not set out an application process or a start date. The subsidy is measured per kWh of battery storage, not per kilowatt of solar-panel output.
Earlier reporting, retained below
The government will introduce concessions for household solar battery storage systems through the 2027 Budget, Energy Minister Anura Karunathilaka has told Parliament.
President Anura Kumara Dissanayake will announce the concession scheme when he presents the budget on November 12, the minister said. The proposed concessions aim to encourage investment in solar battery storage at the household level.
Battery systems store surplus electricity generated during the day so it can be used at night or when sunlight is weak. That allows homes to reduce their dependence on the national grid and increases the use of renewable energy.
With rooftop solar installations growing rapidly in Sri Lanka in recent years, battery storage is seen as the next stage of expansion. Details of the concessions, including their value and eligibility rules, are expected in the budget speech.
Energy officials say wider adoption of storage would also help manage peak evening demand, when the national grid comes under the greatest pressure and expensive thermal generation is brought online.
