FIT removal threatens RE companies By Duruthu Edirimuni Chandrasekera View(s): View(s):The proposed National Electricity Policy raises concerns over the abolition of the Feed-in Tariff (FIT) for Renewable Energy Developers, potentially undermining investments, industry experts say. The Renewable Energy Developers Association (REDA) urged immediate government intervention and supportive policies to retain energy security. The proposed removal of the FIT system, which currently supports approximately 92 per cent of renewable projects under 10 MW, is seen as a threat to small- and medium-scale local entrepreneurs, a REDA Member told the Sunday Times Business. Competitive bidding is considered impractical for certain renewable energy technologies, such as rooftop solar, mini-hydro, and biomass. The removal of FIT, paired with mandatory time-of-use tariffs for rooftop solar and the potential for rupee-only contracts, renders significant financial risks to developers.

Source: Sunday Times January 31, 2026 19:41 UTC