Innovative Rooftop Solar Model in Puerto Rico Inspires USVI Energy Strategy

Puerto Rico’s innovative approach to integrating rooftop solar panels into its energy infrastructure is yielding significant benefits. The initiative involves using batteries linked to these panels to supply backup power to the national grid. This strategy not only aids in preventing blackouts but also has the potential to diminish the reliance on “peaker plants” that are activated during periods of high energy demand.

Luma Energy, the entity in charge of electricity generation and distribution in Puerto Rico, initiated a year-long pilot program last year. This program harnesses power from up to 6,500 homes to alleviate energy shortages. Upon successful completion, Luma aims to evolve this pilot into a virtual power plant. If fully realized with all household batteries, it could become North America’s largest facility of its kind.

Post-Hurricane Maria, which severely impacted Puerto Rico’s already fragile power grid in 2017, the adoption of rooftop solar systems surged. Presently, over 100,000 households have embraced independent power generation, with around 4,000 new systems being added monthly. These installations currently offset Puerto Rico’s energy needs by about 600 megawatts. The pilot program alone is projected to contribute an additional 26 megawatts to the grid. Luma reports that nearly a third of their targeted households had joined the pilot program before the end of 2023, collectively offering over 12 megawatts of power capacity.

In an encouraging development, residents contributing solar battery power to the grid receive compensation at a rate triple that of standard net metering, as highlighted by Javier Rua-Jovet, chief policy officer at the Puerto Rico Solar and Energy Storage Association. Participants in this program could recoup their solar battery investments within a decade. The program, already activated three times, is expected to be increasingly vital, especially with rising summer temperatures.

Inspired by Puerto Rico’s success, the Virgin Islands Energy Office is exploring the establishment of a similar system. Leveraging federal funds from the Inflation Reduction Act and the Bipartisan Infrastructure Law, the office aims to broaden battery storage accessibility in the Virgin Islands. A portion of these funds will be allocated to rebates, significantly lowering initial costs for homeowners interested in home battery systems. This initiative represents a stride towards making energy storage more attainable for residents of the Virgin Islands.