Cuban Government to Offer 90 CUP for Surplus Electricity from Solar Panels

The Cuban government has announced a new rate of 90 Cuban pesos per kilowatt-hour for purchasing surplus electricity produced by homes and entities utilizing solar panels or other renewable sources. This decision is detailed in Resolution 114/2026, as published in the Official Gazette No. 45.

Set to take effect on June 1, this measure marks a significant increase from the 2023 rates, which ranged between three and six Cuban pesos per kilowatt-hour. This change represents a price increase of up to 30 times for non-residential sectors.

During a press conference, Deputy Minister of Finance and Prices, Yenisley Ortiz Mantecón, described the update as "a substantial incentive for popular engagement."

"We see this as a motivating step for all participants, including the general public, to transform the nation's energy landscape," she stated.

The new rate is consistent, applying at any time of day, and covers both residential and non-residential sectors.

Additionally, the resolution exempts income from selling surplus electricity from service taxes. However, Ortiz Mantecón clarified that this does not eliminate the general tax obligation: "Taxpayers must manage the tax on what they owe the following month for earnings from this energy sale."

Mario Castillo Salas, deputy director of the Electric Union (UNE), noted that users with existing contracts will automatically be updated starting June 1, requiring no additional action.

For new applicants, the UNE will begin accepting online requests from May 28, though in-person options remain for those without internet access. The entire process spans ten days, including a safety inspection, replacing conventional meters with bidirectional ones, and signing the contract.

Castillo Salas explained that "the first billing recognizing the generated energy will occur between June 20 and 30, with payments distributed from July 1 to 10."

This initiative is part of the National Strategy for Energy Matrix Transformation, addressing Cuba's energy crisis characterized by power outages exceeding 15 hours daily in some provinces and generation deficits surpassing 2,000 MW.

The situation worsened in January 2026 when Venezuela and Mexico halted oil shipments to the island, deepening a crisis the Energy and Mines Minister acknowledged would persist throughout the year.

Cuba currently has over 1,300 MW of installed solar photovoltaic capacity but cannot fully utilize it due to a lack of energy storage batteries.

The government aims for 24% renewable generation by 2030 and 40% by 2035, with the new rate designed to boost private distributed generation as a supplement to state parks.

Castillo Salas summarized the resolution's impact: "It undoubtedly serves as an additional incentive, allowing for an increase and multiplication of clients using solar photovoltaic systems today."