The Facts on DOE's Puerto Rico Energy Resilience Fund

The U.S. Department of Energy’s (DOE) Puerto Rico Energy Resilience Fund (PR-ERF) is helping households access cheaper solar power and pay significantly less on their monthly energy bills with no upfront costs. Thanks to the feedback DOE collected from hundreds of local stakeholders, this program places the responsibility of long-term maintenance on solar companies and supports Puerto Rico residents with a $10 million investment in consumer protection and education. Access to solar power and battery storage can be an actual lifesaver for Puerto Rico residents who too often face the brunt of extreme weather events, and DOE is committed to continuing our dialogue with communities across the region to deliver cleaner, more resilient power to more residents through PR-ERF.  

Myth: Residential solar energy installations could become a costly burden on households. 

Fact: Solar energy installations and equipment provided through the PR-ERF pose no up-front cost to consumers. The average eligible household will have minimal contributions to the long-term maintenance of the systems, a cost that is more than offset by the reduced energy bills. This will ensure these systems provide reliable electricity across their lifespan.   

Myth: DOE designed the installation program so that only companies using a lease or contract model qualify. 

Fact: DOE evaluated many residential solar ownership models and collected feedback from hundreds of stakeholders and residents, which helped determine that a leasing model would better serve vulnerable Puerto Rican households. As other initiatives have shown, an ownership model places too much risk and burden on households to take care of the system, while a leasing arrangement puts the burden of repairs, routine maintenance, major equipment replacement, and insurance on solar installers instead.  

In addition, the leasing model was selected because individual households in Puerto Rico do not qualify for federal tax credits (specifically the Investment Tax Credits) that residents in the continental US benefit from. As many solar companies do qualify for these incentives, the leasing model allows DOE to install more residential solar systems for cheaper and therefore bring energy resilience to a greater number of residents in need. 

Myth: The PR-ERF is not designed for fairness or energy independence.

Fact: Energy justice and transparency are guiding principles for PR-ERF. Currently, many low-income residents cannot afford residential solar due to its high upfront costs. The PR-ERF is helping thousands of households access cheaper solar power with zero upfront costs, improving the quality of life and energy resilience for many. 

We also recognize that many of these vulnerable households will be receiving residential solar for the very first time. That is why DOE selected two nonprofits to receive up to $10 million through the PR-ERF for education and training to support consumers in learning how to maintain their systems, knowing their rights, and accessing consumer protection.  DOE is also setting up robust monitoring and auditing protocols to make sure these funds are impacting the most vulnerable households, that the equipment installed will withstand hurricane-speed winds, and that the contracts to maintain these systems over the long run are fair and equitable for low-income families.   

Myth: DOE is hiring vendors to sell systems to customers. 

Fact: DOE is not hiring solar vendors. DOE is partnering with community-based organizations to identify qualifying households to ensure every residential solar system goes exclusively to Puerto Rico’s highest-needs residents: very low-income households, communities with the longest outages, and households that have a person with an energy-dependent disability. To reach these populations, DOE selected 16 nonprofits and community organizations as Solar Ambassadors through the PR-ERF to not only identify these households, but also provide education and support with their new systems. These organizations are often on the front lines in communities, working tirelessly to connect their vulnerable neighbors to critical services. Because this vital work often goes uncompensated, DOE created the Solar Ambassador Prize to provide these organizations with upfront seed funding, fund them for each qualified household they enroll, and most importantly, connect Puerto Rico’s most vulnerable residents with critically needed energy resilience. 

Myth: The program may even require people installing renewable systems under the program to agree to have a lien placed on their property as a condition of participation.

Fact: DOE’S PR-ERF program will absolutely not create a lien on the property of households receiving solar energy systems.