Recent changes to electricity charges and the compensation paid for exported solar power are undermining the economics of residential solar and threatening the island’s renewable-energy ambitions.

Solar energy remains a smart investment for high‑energy users but the recent rate changes made by the Regulatory Authority effectively shut out the average Bermudian household from ever being able to afford interconnected solar.

Seniors on fixed incomes and many lower‑income families are even further disadvantaged, making solar increasingly inaccessible to those who could benefit most.

The ones who need solar the most will now not be able to finance it and banks will not lend on the economics of the rates the RA has put in place. Here’s the ironic truth: the RA has created a situation where solar only works for the rich, not for the majority.

Solar companies report that customers are increasingly questioning the value of their investments. Some customers have contacted solar companies about removing existing panels, saying that, with the increased facilities charge, their bills are more than before they installed solar. Also, prospective customers who were preparing to sign contracts have reportedly reconsidered or cancelled those plans.

The concern centres on the combination of a tripling of the facilities charges for solar customers and relatively low compensation for electricity exported to the grid. Also, the current methodology used to determine the feed-in tariff does not adequately reflect the statutory basis for determining the FIT. Solar customers are being paid too little for the power they export to the grid.

This creates a difficult economic situation for residential solar customers but the issue extends beyond individual household electricity bills.

Bermuda has identified renewable energy as an important component of its long-term energy strategy. Yet a regulatory environment that makes residential solar less attractive financially means that the private investment needed to expand renewable generation is at risk.

Residential solar is only 2 per cent to 3 per cent of total electricity generation. If fewer homeowners are willing to invest in solar, Bermuda risks slowing the growth of distributed renewable generation at precisely the time when the island is seeking to reduce its dependence on imported fossil fuels.

Several thousand solar households are calling for a review of the current regulatory framework, including:

• Under Sections 7 and 8 of the Regulatory Authority Act 2011 and Section 13A of the Electricity Act 2016 (as strengthened under recent legislative updates), the minister possesses the clear legal mandate to issue policy directions to the RA in the public interest to ensure regulatory rate-setting reflects published government policy. Issuing this directive serves as a routine, administrative realignment to bring regulatory output back into harmony with the published 2026 policy framework

• Underpinning all of these solutions is an urgent need for full transparency and public accountability in rate-making of all kinds

• In mature regulatory jurisdictions, public utility commissions operate with total transparency so that rate-making equations, underlying data, cost-of-service inputs and statutory methodology can be scrutinised, tested, and publicly challenged. When demonstrable regulatory errors or flawed cost assumptions occur, mature frameworks routinely mandate clawbacks, rate adjustments and the recovery of over or under-payments to make ratepayers whole

• Since the existing pass-through charges — such as the fuel adjustment rate — incorporate complex variables, including third-party generation (eg, airport solar, Tynes Bay), fuel financing, and over/under-recovery rebalancing, the RA must be mandated to publish its full calculations and methodologies. True sectoral confidence and regulatory alignment cannot exist in Bermuda without complete public visibility, rigorous stakeholder input and clear mechanisms to correct regulatory miscalculations

• A flat facilities charge contradicts NESP 2026 principles on energy equity and inclusive participation by penalising smaller, lower energy use by solar adopters. This monthly charge should be based upon kWh delivered to the customer. Or it could be tiered-based on how large a solar array is on your roof, as is done in Hawaii

• Electricity rate structures that may disadvantage customers whose solar production and electricity consumption occur at different times

• Measures that would provide greater certainty for homeowners and businesses investing in renewable energy

The objective should not be to provide preferential treatment to solar customers. It should be to ensure that the regulatory framework does not unintentionally discourage private investment in renewable energy.

Bermuda remains exposed to the cost fluctuations of imported fossil fuels. Making domestic renewable generation less attractive to consumers could therefore have consequences extending well beyond the solar industry.

Bermudians were encouraged by the Government and the 2018 IRP to invest their own money in solar and should not now be left wondering why the regulatory system has made that investment a liability.

If Bermuda is serious about expanding renewable energy and reducing its exposure to international fuel markets, it needs to carefully reconsider the economics of residential solar.

Solar customers are calling on the Regulatory Authority and the Government to review the current charges and FIT methodology and restore confidence in Bermuda’s residential renewable-energy market.

• Robbie Godfrey is chief executive of BE Solar. Stuart Kriendler is chief empowerment officer of Sunny Side Solar