Puerto Rico is experiencing significant growth in the residential solar and storage sector, reaching a capacity of 1.3 gigawatts (GW) of residential solar and 185,000 residential batteries. This trend is expected to continue, with projections indicating an addition of three gigawatt-hours (GWh) of residential storage by 2029 according to Wood Mackenzie.
Recent Developments in Residential Solar
From July to September, Puerto Rico added nearly 90 megawatts (MW) of residential solar capacity, marking the second-best quarter in the territory’s history. Max Issokson, a senior research analyst at Wood Mackenzie, shared these insights at the Solar and Energy Storage Association of Puerto Rico’s annual conference.
Issokson highlighted how historical events, particularly Hurricane Maria, have shaped the current energy landscape. The prolonged power outages following the hurricane prompted a surge in residential solar installations as residents sought more reliable energy sources.
Current Capacity and Future Projections
As of year-end 2023, Puerto Rico has approximately 1,250 MW of residential solar capacity. Wood Mackenzie forecasts that Puerto Rico will add around 330 MW of residential solar in 2024 and another 380 MW in 2027. The primary drivers behind this growth include:
- Rising electricity prices due to reliance on imported fossil fuels.
- Third-party financing options, which account for 70-80% of solar installations.
- Supportive policies for net metering, enhancing the attractiveness of residential solar systems.
Residential Batteries and Energy Storage
Puerto Rico is also witnessing a remarkable increase in battery installations. Currently, the attachment rate for new residential solar systems is 100%, with 81,000 batteries enrolled in a virtual power plant initiative. Wood Mackenzie estimates that by 2029, more than 3 GWh of residential energy storage will be added, making Puerto Rico second only to California in projected additions.
Challenges in Utility-Scale Development
While residential solar and storage thrive, the utility-scale solar sector faces hurdles. The Puerto Rico Energy Bureau had previously mandated that the utility PREPA contract for 3.75 GW of utility-scale solar and 1.5 GW of four-hour battery storage by mid-2023. However, progress has been slow.
As of now, there are 440 MW of solar and up to 485 MW of storage projects under construction, with an additional 230 MW of solar and 510 MW of storage in the financing stages. The Financial Oversight and Management Board’s decisions have discouraged many developers, deeming the market too high-risk.
Looking Ahead
In response to these challenges, Puerto Rico’s governor issued an executive order to expedite solar procurement. This includes initiatives to allocate storage at existing facilities, significantly shortening project timelines. The utility Genera is also exploring several storage projects in collaboration with legacy plants, supported by funding from the Federal Emergency Management Agency.
The advancements in residential solar and storage in Puerto Rico reflect a critical shift towards renewable energy in the face of challenges posed by the traditional grid, ensuring that residents can achieve energy independence and resilience.
