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Bermuda’s energy system at risk of combustion

Penalised: Bermuda solar panel owners are being punitively taxed for investing in alternative energy

In physics, there is a famous experiment: if you take a tiny, unassuming grape, cut it almost completely in half, and place it in a microwave oven, it does not simply warm up. Instead, the intense electromagnetic concentration at the point of contact forces the air to ionize. The grape erupts into a blinding, dangerous flash of plasma.

Right now, Bermuda is that grape. We are a small, isolated system trapped in a high-pressure environment and the sudden concentration of bad policy is threatening to spark a destructive systemic arc. The silence hanging over the island's solar tariff dispute is not the sound of a resolution. It is the tense, holding-pattern hush before a breakdown.

Following the street protests and political back-and-forth that dominated the summer of 2026, the battlefield has simply shifted to closed-door legal proceedings. But beneath the surface, public trust in the Regulatory Authority and Belco remains fundamentally fractured.

A policy that ionises trust

The implementation of the unbundled retail tariff on August 1, 2026, which instantly tripled the fixed monthly facilities charge for solar owners from $52.48 to $148.83, highlights a structural failure in how local consumers have not been well served by the local utility. For families who invested their own hard-earned capital into rooftop solar to escape volatile, fossil-fuel-dependent bills, this flat fee feels less like a fair-share grid contribution and more like a punitive corporate tax.

Failure of RA to exercise due diligence in the establishment of the solar tariff

This is a matter in which an arbitrary and heavy handed utility monopoly that is heavily reliant on fossil fuel has focused purely on maintaining its corporate profits protecting its shareholder interest to the detriment of the development of green energy and who is being shielded by a regulator who has failed to protect the public.

The policy does not differentiated between a residential solar customer with only two or three panels who are distributing little to no energy to the grid and a solar customer with 20 or more panels that could be distributing large amounts to the grid. It does not differentiate solar customers who legitimately are micro-grid operators - ie not exporting any solar to Belco and who have set up their solar systems up to prevent any inadvertent distribution of solar energy to the grid, but who by law have to remain tied to the Belco grid.

By disproportionately penalising alternative energy generation, the unbundled solar tariff directly violates Section 33 of the Electricity Act 2016, which legally binds the regulator to ensure that retail rates remain inherently cross-subsidised, fair, and protective of consumer affordability rather than corporate utility revenues.

This flat fee also flies directly in the face of Section 35 of the Electricity Act 2016, which mandates that retail tariffs must be strictly based on the reasonable cost of service (ie, household consumption of grid electricity). By enforcing a uniform, unyielding penalty instead of a variable rate tied to a household’s actual grid usage, the Regulatory Authority is violating its statutory duty to ensure pricing remains proportional, cost-reflective, and fair.

Regional solutions, balancing the scales

Like the microwaved grape, our energy crisis is a result of forcing a tiny system to absorb immense friction. But as the data highlights, other island nations have shown that the grid doesn't have to spark to stay alive; it can be managed with sophisticated balance rather than blunt force:

Hawaii’s virtual power plants

Rather than punishing solar users, Hawaiian Electric transitioned to a "Bring Your Own Device" framework. Solar owners are given dynamic credits based on when they export power and the utility actually pays residents to access their home battery systems during evening peak hours to stabilise the grid.

Cayman Islands’ dual-meter approach

Under their Customer-Owned Renewable Energy programme, the Cayman Islands bypassed messy billing friction. Solar owners use a "Buy-All, Bill-All" structure with two distinct meters: one tracks total consumption at standard rates, while the other tracks 100 per cent of solar generation paid out at a guaranteed, fixed incentive rate.

Barbados’s structured feed-In tariffs

In Barbados, grid modernisation costs are funded through a transparent percentage levied on actual clean energy generation, rather than a blunt monthly fine. This ensures that small, low-income households are never disproportionately penalised.

Moving beyond the blunt instrument

Bermuda's current "policy first, evidence later" approach has brought our renewable energy sector to a grinding halt. If the RA and Belco ever hope to regain public trust, they must look to these regional examples.

We must abandon the blunt instrument of the flat $148.83 fee and replace it with a sophisticated, usage-based and battery-incentivised framework. If we continue to trap local consumers in a high-pressure, unyielding system, we should not be surprised when the grid — and the community — finally combusts.

• Eugenie Simmons is a solar customer and clean energy advocate based in Sandys

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Published October 05, 2026 at 7:55 am (Updated October 05, 2026 at 8:33 am)

Bermuda’s energy system at risk of combustion

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