Solar Panel Installation Cost in Sri Lanka (2025 ROI Calculator)
Solar Panel Installation Cost in Sri Lanka (2025 ROI Calculator)
Sri Lanka has 300+ sunny days per year. Every day without solar panels, you're paying CEB for electricity that nature offers free.
Solar has become the smartest home investment in 2025. With CEB's Net Metering scheme, excess electricity you generate is sold back to the grid, crediting your bill. The math now works strongly in your favor.
This guide covers everything: system sizing, costs, installation, and when you'll break even.
Table of Contents
- How Solar Works in Sri Lanka
- System Sizing: How Much Do You Need?
- Component Costs (2025 Prices)
- Complete System Pricing
- Installation Process
- ROI Calculation
- Net Metering Explained
- FAQs
1. How Solar Works in Sri Lanka
The Basic Setup
- Solar Panels (on roof) convert sunlight to DC electricity
- Inverter converts DC to AC (usable in home)
- Net Meter (from CEB) measures import AND export
- Grid Connection uses CEB as your "virtual battery"
Key Insight: You don't need battery storage in most cases. During the day, export excess to grid. At night, draw from grid. CEB credits/debits the difference.
System Types
| Type | How It Works | Best For |
|---|---|---|
| Grid-Tied (Net Metering) | Connected to CEB grid, no battery | Most homes (cheapest, best ROI) |
| Hybrid | Grid + Battery backup | Areas with frequent power cuts |
| Off-Grid | 100% battery, no grid | Remote locations |
2. System Sizing: How Much Do You Need?
Matching System to Bill
| Monthly CEB Bill | Units Consumed | Recommended System |
|---|---|---|
| Rs. 3,000 - 5,000 | 100-150 units | 2 kW |
| Rs. 5,000 - 8,000 | 150-250 units | 3 kW |
| Rs. 8,000 - 15,000 | 250-400 units | 5 kW |
| Rs. 15,000 - 25,000 | 400-600 units | 7-8 kW |
| Rs. 25,000+ | 600+ units | 10 kW+ |
Generation Estimate
In Sri Lanka's climate, each 1 kW of solar generates approximately 110-130 units per month (average).
Example:
- A 5 kW system generates ~550-650 units/month
- If you consume 400 units, the excess 150-250 units is exported to CEB
3. Component Costs (2025 Prices)
Solar Panels
| Brand/Origin | Type | Price Per Watt | Notes |
|---|---|---|---|
| Tier-1 Mono (Jinko/JA Solar) | Monocrystalline | Rs. 70 - 85 | Industry standard |
| Canadian Solar | Monocrystalline | Rs. 85 - 100 | Premium reputation |
| LONGi | Hi-Mo Mono | Rs. 90 - 110 | High efficiency |
| Chinese Generic | Poly/Mono | Rs. 50 - 65 | Lower warranty, questionable longevity |
For a 5 kW system (5,000 W):
- Tier-1 Panels: Rs. 375,000 - 500,000
⚠️ Warning: Avoid ultra-cheap panels without proper certifications. They degrade faster and may not qualify for Net Metering.
Inverters
| Brand | Type | Price (5kW) | Warranty |
|---|---|---|---|
| Growatt | String Inverter | Rs. 180,000 - 220,000 | 5 years |
| Sungrow | String Inverter | Rs. 200,000 - 250,000 | 5-10 years |
| SolarEdge | Optimizers | Rs. 350,000 - 450,000 | 12 years |
| Fronius | Premium | Rs. 380,000 - 480,000 | 10 years |
Mounting Structure
| Type | Price (Per kW) | Notes |
|---|---|---|
| Anodized Aluminium | Rs. 25,000 - 35,000 | Standard, corrosion resistant |
| Galvanized Steel | Rs. 18,000 - 25,000 | Budget option |
| Roof Integration | Rs. 40,000+ | Built into roof tiles (rare) |
Wiring and Protection
| Item | Cost |
|---|---|
| DC cables and connectors | Rs. 15,000 - 25,000 |
| AC cables and DB connection | Rs. 15,000 - 25,000 |
| Surge protection | Rs. 10,000 - 20,000 |
| Earthing | Rs. 10,000 - 15,000 |
4. Complete System Pricing
5 kW System (Most Popular)
| Component | Budget | Standard | Premium |
|---|---|---|---|
| Panels (5 kW) | Rs. 325,000 | Rs. 400,000 | Rs. 500,000 |
| Inverter | Rs. 180,000 | Rs. 220,000 | Rs. 380,000 |
| Mounting Structure | Rs. 100,000 | Rs. 140,000 | Rs. 180,000 |
| Wiring & Protection | Rs. 50,000 | Rs. 65,000 | Rs. 85,000 |
| Installation Labor | Rs. 50,000 | Rs. 75,000 | Rs. 100,000 |
| CEB Net Meter Fee | Rs. 25,000 | Rs. 25,000 | Rs. 25,000 |
| TOTAL | Rs. 730,000 | Rs. 925,000 | Rs. 1,270,000 |
Price Per kW Summary
| System Size | Budget | Standard | Premium |
|---|---|---|---|
| 3 kW | Rs. 500,000 | Rs. 650,000 | Rs. 900,000 |
| 5 kW | Rs. 730,000 | Rs. 925,000 | Rs. 1,270,000 |
| 7 kW | Rs. 980,000 | Rs. 1,250,000 | Rs. 1,700,000 |
| 10 kW | Rs. 1,350,000 | Rs. 1,750,000 | Rs. 2,400,000 |
5. Installation Process
Timeline: 2-4 Weeks
| Stage | Duration | Activity |
|---|---|---|
| Site Survey | Day 1 | Installer checks roof, shading, wiring |
| Quotation & Agreement | Days 2-3 | Finalize specs and price |
| CEB Application | Days 4-14 | Net Metering approval (can take 2-3 weeks) |
| Installation | 1-2 days | Panel mounting, inverter, wiring |
| CEB Inspection | Day 3-5 after install | Safety verification |
| Net Meter Activation | Days 7-10 | Go live! |
CEB Net Metering Requirements
- Application Fee: Rs. 2,500
- Meter Deposit: Rs. 15,000 - 25,000
- Required Documents:
- Electricity Bill Copy
- National ID
- Deed/Rent Agreement
- Technical Specifications of System
- Maximum Size: 20 kW for residential
6. ROI Calculation (Payback Period)
Example: 5 kW Standard System
Investment: Rs. 925,000
Monthly Benefit:
- Generation: 550 units
- Your consumption: 400 units
- Export to grid: 150 units
- CEB Rate: Rs. 45 per unit (average block rate)
Monthly Savings:
- Self-consumption: 400 × Rs. 45 = Rs. 18,000
- Export credit: 150 × Rs. 22 = Rs. 3,300 (export rate is lower)
- Total Monthly Benefit: Rs. 21,300
Payback Period: Rs. 925,000 ÷ Rs. 21,300 = 43 months ≈ 3.6 years
25-Year Benefit: (Rs. 21,300 × 12 × 25) - Rs. 925,000 - Rs. 300,000 (inverter replacement at Year 12) = Rs. 5,165,000 lifetime savings
7. Net Metering Explained
How It Works
- Daytime: Your panels generate more than you use. Excess goes to grid.
- Nighttime: You draw from grid (using your credits).
- Month-End: CEB calculates: Import - Export = Net Bill
- If Export > Import: Credit rolls to next month (up to 10 years).
Export vs Import Rates (2025)
| Tariff | Import Rate (What You Pay) | Export Rate (What You Earn) |
|---|---|---|
| 0-60 units | Rs. 15 | Rs. 9 |
| 61-90 units | Rs. 25 | Rs. 15 |
| 91-120 units | Rs. 35 | Rs. 21 |
| 121-180 units | Rs. 50 | Rs. 30 |
| Above 180 units | Rs. 75 | Rs. 45 |
Key Insight: Export rates are typically 60% of import rates. This means self-consumption is more valuable than export. Size your system to match your usage, not exceed it massively.
8. Frequently Asked Questions
Q1: Do I need batteries?
For most homes, no. The grid acts as your storage. Batteries add Rs. 400,000+ and only make sense if:
- You have frequent power cuts (3+ hours daily)
- You're off-grid
Q2: What happens during a power cut?
Grid-tied systems shut down during power cuts (safety requirement). You won't have power even if the sun is shining. Solution: Add a hybrid inverter + battery if outages are a concern.
Q3: How long do panels last?
- Tier-1 Panels: 25-30 years (with ~80% efficiency at Year 25)
- Inverter: 10-15 years (plan for one replacement)
- Mounting: 25+ years (aluminium)
Q4: Can my roof handle solar panels?
Most roofs can. Panels weigh ~2 kg per sq ft. Your structural engineer should confirm. Asbestos roofs may need reinforcement.
Q5: Is financing available?
Yes. Several banks offer solar loans:
- BOC: Up to 80% financing, 7-10 year term
- Sampath: Green loans at concessional rates
- DFCC: Solar-specific products
Monthly loan payment is often less than your old electricity bill—making it cash-flow positive from Day 1.
Q6: Can I expand later?
Yes, if:
- Your roof has space
- Inverter has capacity (or can be replaced)
- CEB approves updated Net Metering
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