President Anura Kumara Dissanayake has proposed a subsidy of Rs. 25,000 per kilowatt-hour (kWh) for households installing battery storage systems alongside new rooftop solar power systems.

Presenting the 2027 Budget in Parliament, the President said the proposal aims to promote renewable energy generation, strengthen energy security and improve the stability of the national electricity grid by reducing imbalances.

Under the proposal, households installing new rooftop solar systems under the Net Plus scheme will receive a subsidy of Rs. 25,000 per kWh of battery storage capacity, up to a maximum capacity of 10 kWh.

An allocation of Rs. 3,500 million has been proposed for the subsidy programme.

The President also proposed removing the 10% Port and Airport Development Levy (PAL) imposed on imported batteries used for solar energy storage.

He said this would provide an additional tax benefit of approximately Rs. 4,000 to Rs. 5,000 per kWh, in addition to the direct subsidy.

Accordingly, households installing battery storage systems would receive both the direct government subsidy and the benefit of the tax reduction, he explained.

The President said the measures were intended to encourage households to adopt battery storage systems as part of the country’s transition towards renewable energy. (Newswire)