Energy - Profit Cap on Solar Kits: Government Prepares Legal Framework

Javed Sobah

Wed 12/10/2025 - 1:00 PM

The government plans to impose a profit cap on solar kits in response to the increased demand for electricity this summer. Patrick Assirvaden responded to MP Babita Thannoo's question during the parliamentary session on Tuesday, December 9. He emphasized that "energy security remains a top priority, alongside promoting renewable energy," aiming to achieve 60% renewable energy by 2035 through the integration of photovoltaic installations. However, he noted the lack of standards for installers and kits, stating, "It is crucial to establish standards that meet international specifications to maintain quality and grid stability." To tackle these challenges, Assirvaden has formed a committee including his ministry, CEB, IMO, MARINA, and Energy Efficiency Management to explore the possibility of a profit cap. He added, "Before making any decisions, we must first regulate the training of installers and the compliance of kits."

The minister also addressed the issue of battery recycling in response to MP Raviraj Beechook, stating, "MARINA and IMO are working on this framework. The issue will arise when we reach 60% renewable energy, but it is being considered now." Finally, regarding Home Solar Projects, he stressed the need for regulation for off-grid users, saying, "Without accurate data on the grid, the risks to CEB workers and users will be higher." The upcoming bill will draw inspiration from international examples, notably France's APER law.