Puerto Rico solar incentives take almost nothing off the price. They start working after your system is switched on. LUMA, the company that sends your electric bill, credits you for the solar power you send to the grid. The equipment is free of sales tax and property tax. A home battery can also earn money when the grid borrows its power. The one cash rebate, from the Department of Housing, is closed to new applications.
Recently changed: the Department of Housing rebate (Programa Incentivo Solar) is closed to new applications. The U.S. Department of Energy told Congress on January 6, 2026 that its free rooftop solar money had moved to grid repairs. LUMA’s fixed monthly charge is now $8 a month and is set to be $16 a month from July 2027.
What can a Puerto Rico home still get in 2026, and when does it pay?
Four benefits are open to new home systems. None of them is a check at signing.
Benefit | What you get | When it pays | What you must do |
|---|---|---|---|
Each kWh you send to the grid cancels one kWh you buy | Every month on your bill, once LUMA has registered the system | Nothing. Your installer certifies the system to LUMA | |
No IVU (11.5%) on solar panels, batteries and their parts. Example: $1,150 on $10,000 of equipment | At the sale. The tax is never charged | Check that your quote shows no IVU on the equipment | |
Your solar equipment and battery add no taxable value | Every year | Nothing to file | |
Pay for battery power sent to the grid in an emergency. The amount is set in your contract | After each event, on your aggregator’s schedule | Enroll your battery with a LUMA-approved company |
A price to compare against: the EcoGen Solar Cost Index puts a 3.5 kW home system at $10,500. For Puerto Rico that figure is modeled, not taken from installer prices. It covers panels only and leaves out the battery. ¿Prefieres leerlo en español? Lee la guía en español.
How do LUMA bill credits work for solar homes?
LUMA runs the island’s power lines and sends your electric bill. Under net metering, it counts the solar power you send to the grid against the power you take from it. One kWh out cancels one kWh in. If you send out more than you use in a month, the extra moves to your next bill as a credit.
The program covers home systems of up to 25 kW. There is no separate program to win a place in. Your installer certifies the system to LUMA, and net metering must show on your bill within 30 days.
Once a year there is a settlement. Credits that you have not used when the June bill closes do not roll on. LUMA buys 75% of them, at 10 cents per kWh or more. The other 25% goes to the electric bills of public schools.
Example: you have 100 kWh of unused credit in June. LUMA buys 75 kWh and pays you at least $7.50. The other 25 kWh go to public schools. So a system sized far above your own use gives part of its power away.
Watch out: Credits cancel kWh, not the whole bill. LUMA’s fixed charge is $8 a month in the year to June 2027, and the Energy Bureau’s rate order sets it at $16 a month from July 2027. Solar does not remove it. Ask your installer which price per kWh its savings figure uses, and compare it with this month’s price on your LUMA bill.
How long is the one-for-one rule protected?
A law signed on January 10, 2024, Act 10-2024, locks the current rule in. The Puerto Rico Energy Bureau, the island’s utility regulator, may not start the study needed to change it before January 2030. After any decision to change it, the current rule stays for at least 12 months. Homes already on net metering keep their rule for at least 20 years.
The law is being challenged. The Financial Oversight and Management Board, the federal board that oversees Puerto Rico’s finances, sued on July 26, 2024 to cancel it. We found no ruling when we checked. The Board says that canceling the law would not change the terms of homes that already have solar.
Watch out: Nobody selling panels knows how the case ends. Ask your installer, in writing, what your savings look like if new systems later get a lower credit.
Source: Financial Oversight and Management Board, Act 10 FAQ
Condominiums and shared roofs
LUMA’s rules also include shared net metering, which splits the output of one system among the units of a condominium. The roof is common property, so the association decides first. Ask it before you ask an installer.
Ask installers what your system will earn, in writing
Your ZIP code starts a quote request with installers near you. Ask each one for the yearly kWh it expects, and check that no federal credit or Housing rebate is in the price.
- The value comes after the installBill credits and battery payments depend on how the system is built and enrolled.
- No cost, no pressureComparing quotes is free, and you never have to sign.
- Shared only with matched installersYour details go to the installers you are matched with.
How does a home battery earn money in Puerto Rico?
Through LUMA’s Customer Battery Energy Sharing program. When the grid is short of power, LUMA calls an emergency event and home batteries send power back. In the year to June 2026 it called 58 events. At the end of June 2026, 91,466 customers were taking part.
You do not sign up with LUMA. You sign up with an aggregator: a company, often your battery maker or installer, that groups many home batteries and deals with LUMA for them. LUMA pays the aggregator $1.25 per kWh your battery sends out. The aggregator then decides what it pays you. There is no single customer rate, and any guide that quotes one is guessing.
Example: your battery sends 10 kWh to the grid in one event. LUMA pays your aggregator $12.50. Your share is whatever your contract says.
The Energy Bureau approved the program to run through June 30, 2028.
- Who can join: LUMA customers with a home battery, at an address that is registered in net metering.
- You may be enrolled already: for summer 2026 the Energy Bureau let aggregators enroll customers automatically, after giving notice. You can leave at any time.
- You keep a reserve: you set how much of the battery stays back for your own home. Power promised to the grid is not there for you in an outage.
- Ask for dollars, not a rate: ask the aggregator what a customer with your battery was paid last year.
Watch out: Not every battery brand works with every aggregator. Before you buy, ask which aggregator would enroll your battery. LUMA lists the approved companies on its battery program page.
Does Puerto Rico tax solar panels and batteries?
No. Two taxes leave solar equipment alone, and neither needs an application from you.
No IVU on the equipment
IVU is Puerto Rico’s sales and use tax. It adds up to 11.5%. Solar equipment that makes or stores electricity is exempt, with its parts and accessories. That includes batteries and leased systems. The law is Section 4030.17 of the Puerto Rico Internal Revenue Code.
You file nothing. The distributor or manufacturer certifies to the Department of Hacienda, the island’s treasury, that the equipment meets the standards and has a warranty of at least 5 years.
Watch out: A 2026 tax reform bill would repeal this exemption. Its last recorded step was a committee hearing on January 27, 2026, and the exemption was still in the law as compiled on May 28, 2026. Confirm on your quote that no IVU is charged on the equipment.
No property tax on the equipment
Solar equipment is 100% exempt from Puerto Rico property tax. Storage equipment is named too, so a battery is covered. The law is Article 7.092(s) of the Puerto Rico Municipal Code. It has no end date.
The same warranty and certification conditions apply. If solar equipment ever shows up in your property assessment, contact CRIM, the agency that collects property tax for the municipalities.
A smaller one: early IRA withdrawals
If you are under 60 and take money out of a Puerto Rico individual retirement account (IRA) to buy a solar system for your home, the 10% early withdrawal penalty does not apply on up to $20,000. You can do this once every 10 years. The money you take out still counts as income. This rule is for Puerto Rico IRAs, not federal ones.
What is the EcoHogar loan?
It is a loan, not a grant. The Puerto Rico Green Energy Trust offers it with the credit union Cooperativa Jesús Obrero. It lends up to $75,000 for a solar system with batteries, for up to 15 years. Rates start at 5.95% APR. APR is the yearly cost of a loan, with fees counted in. The rate you get depends on your file.
You must own the home and live in it, and have a credit score of at least 580. A home energy assessment comes first, and both program pages say it is free. The credit union pays the installer directly, and the installer must be on its approved list.
Puerto Rico money you should not count on
These still show up in sales talks and older guides.
- The Department of Housing rebate. Programa Incentivo Solar is closed to new applications. It ran a single ticket round, on August 10, 2023. A price that only works with this rebate does not work.
- Free rooftop solar from the U.S. Department of Energy. The department canceled its rooftop projects and told Congress on January 6, 2026 that the money had moved to grid and power plant repairs. The more than 6,000 homes that already got systems keep them. There are no new applications.
- A quote that takes 30% off for the federal tax credit. That credit ended for systems finished after December 31, 2025. Ask for the quote again without it.
- Battery payments for a battery that is not in net metering. The battery program is only for addresses registered in LUMA net metering, and only through an approved aggregator.
- Cash for a large yearly surplus. LUMA buys only 75% of the credits left in June, and the price can be as low as 10 cents per kWh.
From quote to first credit: who does what
- Before you sign: read the quote for three lines. No IVU on the equipment. No federal tax credit. No Housing rebate. Ask for a warranty of at least 5 years, which net metering and both tax exemptions need.You.
- Before you sign: ask about the battery. Which aggregator would enroll it, and what did its customers earn last year?You, with your installer.
- At install: the installer registers the system with LUMA. The installer must be a licensed engineer or electrician. For a system of 25 kW or less, the installer certifies it to LUMA and no separate application to connect is needed.Your installer.
- Within 30 days: check your bill. Net metering should appear on it. If it does not, call LUMA and your installer.You. LUMA applies the credits.
- After switch-on: enroll the battery. Sign up with the aggregator and set your backup reserve. If you were enrolled automatically and do not want it, you can leave.You and the aggregator.
- Each June: look at your unused credits. Anything left is settled, and only 75% of it is paid to you.LUMA.
Compare Puerto Rico quotes with the battery on its own line
Enter your ZIP code to request quotes from installers in your area. Ask each one to price the battery separately and to name the aggregator that would enroll it.
The form asks about your home first, then your contact details. EcoGen or its installer partners may contact you.
- A quote request, nothing moreYour ZIP code starts a request for quotes from local installers. It does not apply for any program.
- Home questions firstYou answer a few questions about your home. Your name, email and phone come last.
- Free, and your choiceRequesting quotes costs nothing. You decide if you go ahead.
More Puerto Rico solar guides
Puerto Rico solar incentive questions
Does Puerto Rico Have a Solar Tax Credit?
No. Puerto Rico’s tax code has no income tax credit for a home solar system, and the federal credit ended for systems finished after December 31, 2025. The IRS also says a full-year resident whose only income is from Puerto Rico generally does not file a federal income tax return, so many island homes had no federal tax for the credit to reduce. The tax help here is the IVU and property tax exemptions.
Does Puerto Rico Have Net Metering?
Yes. LUMA credits home systems of up to 25 kW one for one: each kWh you send out cancels one kWh you buy. Extra credit moves to the next bill. Credits still unused in June are settled: LUMA buys 75% at 10 cents per kWh or more, and 25% goes to public schools.
Is Net Metering Going Away in Puerto Rico?
Not under current law. Act 10-2024 blocks the study needed to change it until January 2030, and homes already on net metering keep their rule for at least 20 years. The Financial Oversight and Management Board sued on July 26, 2024 to cancel that law. We found no ruling when we checked.
How Much Does LUMA Pay for Battery Power?
LUMA pays aggregators $1.25 per kWh sent to the grid during an emergency event. It does not pay customers directly. Your aggregator sets your payment in its contract with you, so two homes with the same battery can earn different amounts.
Is the Programa Incentivo Solar Still Open?
No. The Department of Housing program is closed to new applications. Its single ticket round was on August 10, 2023. Do not sign a contract whose price depends on it.
Can I Still Get Free Solar Panels From the Government in Puerto Rico?
Not as a new applicant. The U.S. Department of Energy canceled its rooftop solar projects and told Congress on January 6, 2026 that the money had moved to grid repairs. The more than 6,000 homes that already received systems keep them.
Do You Pay IVU on Solar Panels in Puerto Rico?
No. Solar equipment that makes or stores electricity is exempt from the full 11.5% IVU under Section 4030.17 of the Puerto Rico Internal Revenue Code. Batteries and leased systems are covered. A 2026 bill would repeal the exemption, but it was still in the law as compiled on May 28, 2026. Confirm on your quote that no IVU is charged.
Sources (17)
- LUMA, Interconnection and Net Metering Agreement for individuals (database check September 30, 2026): lumapr.com
- LUMA, net metering steps (database check September 30, 2026): lumapr.com
- Financial Oversight and Management Board for Puerto Rico, newsletter of July 2024, complaint on Act 10-2024 (checked September 30, 2026): oversightboard.pr.gov
- Financial Oversight and Management Board for Puerto Rico, Act 10 FAQ (checked September 30, 2026): oversightboard.pr.gov
- Puerto Rico Energy Bureau, final rate order of April 15, 2026, executive summary, NEPR-AP-2023-0003 (checked September 30, 2026): energia.pr.gov
- LUMA, Three-Year Plan filed with the Puerto Rico Energy Bureau on March 2, 2026, battery sharing program (checked September 30, 2026): energia.pr.gov
- LUMA, Customer Battery Energy Sharing program page (checked September 29, 2026): lumapr.com
- Puerto Rico Internal Revenue Code of 2011, Sections 4030.17 and 1081.02, Office of Management and Budget compilation (checked October 1, 2026): bvirtualogp.pr.gov
- Puerto Rico Municipal Code, Act 107-2020, Article 7.092(s), Office of Management and Budget compilation (checked September 29, 2026): bvirtualogp.pr.gov
- Cooperativa de Ahorro y Crédito Jesús Obrero, EcoHogar (checked September 30, 2026): jesusobrero.coop
- Puerto Rico Green Energy Trust, EcoHogar (checked September 30, 2026): prgreenenergytrust.org
- U.S. Department of Energy, Puerto Rico Energy Resilience Fund Q&As (checked September 29, 2026): energy.gov
- Puerto Rico Department of Housing, Programa Incentivo Solar (checked September 29, 2026): incentivosolar.pr.gov
- IRS, Residential Clean Energy Credit (checked September 30, 2026): irs.gov
- IRS, Topic no. 901, Is a person with income from sources within Puerto Rico required to file a U.S. federal income tax return? (checked September 30, 2026): irs.gov
- EcoGen Solar Cost Index, Q2 2026, Puerto Rico cost page (modeled row): ecogenamerica.com
- Puerto Rico Legislature, SUTRA, P. de la C. 1014 status (checked October 1, 2026): sutra.oslpr.org
