Rebates, Taxes & Incentives

Finally, take advantage of the ARRA-SEP Rebates now being offered in Puerto Rico.

One of the programs under which Puerto Rico has received ARRA funds is the State Energy Program (ARRA-SEP) administered by the United States Department of Energy (DOE). With these funds, the Puerto Rico Energy Affairs Administration (AAE - Administración de Asuntos Energéticos) has created a program, to provide rebates for the purchase and installation of solar energy systems, solar water heaters and wind energy systems, and for the retrofitting of buildings to make them more energy efficient.

The Rebates being offered by the Puerto Rico State Energy Program are:

Sun Energy Sub-Program:

Homeowners will be eligible to receive a one-time rebate for the purchase and installation of a new solar photovoltaic system at four dollars per watt ($4/watt) based on the total wattage rating up to fifty percent (50%) of the cost of the system with a maximum rebate of thirty thousand dollars ($30,000) per system per facility. Homeowners may combine the Sun Energy Program rebate with the Solar Water Heater Rebate Program.
Businesses (for profit and not for profit) will be eligible to receive a one-time rebate for the purchase and installation of a new solar photovoltaic system at four dollars per watt ($4/watt) based on the total wattage rating up to fifty percent (50%) of the cost of the system with a maximum rebate of two hundred thousand dollars ($200,000) per system per facility.

Building Energy Efficiency Retrofit Sub-Program:

Businesses (for profit and not for profit) will be eligible to receive a one-time rebate for the implementation of a building energy efficiency retrofit project up to fifty percent (50%) of the eligible costs with a maximum rebate of three hundred thousand dollars ($300,000).

Solar Water Heater Rebate Sub-Program:

Homeowners are eligible to receive a one-time one thousand dollar ($1,000) rebate for the purchase and installation of a new solar water heater to be used in a dwelling unit. Homeowners may combine the Solar Water Heater Rebate Program with the Sun Energy Program.

Wind Energy Sub-Program:

Business (for profit and not for profit) will be eligible to receive a one-time rebate for the purchase and installation of a new wind energy system up to fifty percent (50%) of the cost of the system with a maximum rebate of two hundred thousand dollars ($200,000) per system per facility.

Agriculture Renewable Energy Sub-Program:

Farmers will be eligible to receive a one-time rebate for the purchase and installation of a new renewable energy system up to forty percent (40%) of the cost of the system with a maximum rebate of two hundred thousand dollars ($200,000) per system per facility. Additionally, Solar Energy System rebates will not exceed four dollars per watt ($4/watt) based on the total wattage rating.

For additional information see: ARRA-SEP Regulation

Tax Credits and Net Metering Law:

Puerto Rico has already approved several laws to make renewable energy very attractive. Three of the most important laws for residential, commercial and industrial clients are law 211 and 248 of 2008 and Law 114 of 2007. Law 248 of 2008 provides a solar equipment tax credit including the installation of 75% for fiscal years 2007-2008 and 2008-2009, 50% for fiscal years 2009-2010 and 2010-2011 and 25% from 2011-2012 there on. Law 114 of 2007 and Law 211 of 2008 deal with net metering, which if your renewable energy system generates more electricity that you consume, this excess electricity is fed back into the electrical grid, causing the meter to run backwards.

Incentives, Laws and Other Documents:

Below is a list of the above mentioned laws and several other laws that make renewable energy projects in Puerto Rico very attractive. In addition, you will find several other documents of interest related to the Puerto Rico Infrastructure Financing Authority (Autoridad para el Financiamineto de la Infraestructura - AFI), Puerto Rico Department of the Treasury (Departamento de Hacienda de Puerto Rico), Puerto Rico Electric power Authority (Autoridad de Energía Eléctrica de Puerto Rico) and the Database of State Incentives for Renewables and Efficiency (DSIRE).