DFCC Bank funds large rooftop solar energy systems to boost electricity supply

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DFCC Bank has banked on the abundant year round sunlight in Sri Lanka to fund the installation of rooftop solar systems on building rooftops, including factories in the country.

The Bank has granted term loans of approximately USD5.0 million to “Suryadhanavi”(Pvt) to establish an 11.4MW rooftop mounted solar power project on rooftops of 14 factories owned by Hidramani Group and Akbar Brothers. Suryadhanavi has entered into agreements with the respective rooftop owners for the use of their roofs with 10% free shares allotted to them. The entire project will use around 31,768 solar panels with 185 inverters. Installation of 1MW would require a minimum roof space of 6,000sq meters. As per the “Net Plus” tariff system, the total electricity generated from this project will be purchased by the utility agency, Ceylon Electricity Board for 20 years. The tariff for years 1-7 will be Rs 22 per kWh (US$0.12) and for 8-20 years will be Rs 15.50 per kWh (US$0.09). The bill for electricity consumption by these factories would be paid to the utility agency as usual.

This in an innovative project as it involves installation of solar roofing by a promoter specializing in renewable energy projects on rooftops of large buildings owned by others. This model will thus be a major boost to the rooftop solar industry as potential investors can rent space from large rooftop owners such as garment factories who are not interested in making the required investment for a project of this nature.

This project is aligned with Sri Lanka Government’s “Soorya Bala Sangramaya” project (“battle for the power of the sun”) which aims to effectively harness the abundant solar resources available in the country and for solar energy to play an important role in the electricity generation mix of the country.

DFCC Bank’s “Funding the Installation of Rooftop Solar Systems of Large Rooftop Owners” received a merit award in the 2019 ADFIAP Outstanding Project Awards under the environmental development category.

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