Customers feeding their extra electricity into the island’s power grid will get their payback mostly restored to former levels from January 1.

The announcement from the Regulatory Authority of Bermuda means the Feed-In Tariff will rise from $0.131 per kilowatt-hour to $0.1915 per kWh.

The rebate was chopped by 42 per cent from $0.2265 per kWh to $0.131 per kWh on October 1, attracting criticism from the solar industry.

The move comes just over a week after the regulator announced it was reducing the Fuel Adjustment Rate, which was raised on October 1 and is also scheduled to drop at the beginning of 2024.

The rate, reportedly increased in response to higher global oil prices, was used by Belco in its calculations of the cost of electricity.

The RA attributed the FIT increase to “dynamic shifts unfolding in both the energy and economic landscapes”.

The authority added: “The rationale behind this move is grounded in a commitment to maintaining a structure that not only aligns with international best practices but also remains in harmony with Bermuda’s legislative framework.

“This involves a systematic and meticulous approach to conducting regular, thorough reviews, leading to necessary modifications.”

The RA said its review kept the FIT “fair and transparent” for the evolving energy sector.

The FIT methodology is largely based on the avoided cost of generation, which tallies closely with the cost of fuel, net economic benefits, and other adjustments.

The RA emphasised that increasing the FIT was “not solely about incentivising small-scale renewable energy sources” but balanced encouraging renewable energy with “safeguarding the interests of consumers and investment”.

The figure is reviewed each quarter.