The National Electric System (SEN) in Cuba will now pay 90 Cuban pesos for each kilowatt-hour of renewable energy fed into the national grid, as decreed by Resolution 179/2026 from the Ministry of Finance and Prices. This announcement was made in the Official Gazette No. 66 released on Friday.
Signed last Tuesday by Minister Vladimir Regueiro Ale, the new regulation revises the previous Resolution 114/2026 from May, explicitly broadening its scope to encompass both residential and non-residential energy producers.
This flat rate of 90 CUP/kWh applies uniformly across all time periods, without distinguishing between day, peak, or night hours.
The resolution states: "The approved tariff for purchasing electricity from both non-residential and residential producers, delivered to the National Electric System (SEN) through renewable energy sources, is set at ninety Cuban pesos per kilowatt-hour (90.00 CUP/kWh), applicable at any time of the day."
The increase from the earlier rates is significant: Resolution 238/2023 had set the rate at just 3.00 CUP/kWh for non-residential producers and 6.00 CUP/kWh for residential ones, making the new rate 30 and 15 times higher, respectively.
Under the 2023 scheme, renewable sugar mills had differentiated rates depending on the time of day: 9.00 CUP/kWh during the day, 12.00 CUP/kWh during peak hours, and 4.00 CUP/kWh at night. The new flat rate replaces this tiered structure.
Implications of the New Incentives
The disparity is striking: while the SEN will pay 90 CUP/kWh for renewable electricity, Cuban residential consumers still pay between 0.33 CUP/kWh for the first 100 kWh monthly and up to 25.00 CUP/kWh in the highest bracket, according to the staggered tariff effective since March 2024.
This difference underscores the incentive nature of the measure: the regime aims to attract private investment in distributed generation due to the state's inability to sustain the electrical system.
Also published in Gazette No. 66 was Resolution 180/2026, which expands fiscal incentives for renewable energy: it exempts individuals and companies importing photovoltaic solar panels, solar heaters, photovoltaic pumps, small wind turbines, biodigesters, solar lighting, solar air conditioners, and chargers for electric vehicles from customs duties.
Additionally, this resolution exempts those who install renewable sources for self-consumption or delivery to the SEN from paying taxes on profits and personal income during the investment recovery period, for up to eight years.
Recent Energy Crisis and Future Plans
This regulatory package arrives shortly after Cuba experienced another total collapse of the SEN last Sunday, amid an energy crisis that throughout many days in 2026 has seen deficits nearing or exceeding 2,000 MW.
Currently, the country operates 54 photovoltaic solar parks that provide peak outputs of up to 858 MW during daylight hours, although this production drops significantly at night when consumption peaks. The official plan aims to expand to 92 solar parks by 2028.
Understanding Cuba's Renewable Energy Incentives
What is the new rate the Cuban government is paying for renewable energy?
The Cuban government is offering 90 Cuban pesos per kilowatt-hour for renewable energy supplied to the national grid.
How does the new rate compare to the previous rates?
The new rate is significantly higher, with increases of 30 and 15 times respectively from the previous rates of 3.00 CUP/kWh for non-residential and 6.00 CUP/kWh for residential producers.
What fiscal incentives are offered for renewable energy in Cuba?
The government is offering tax exemptions on customs duties for importing renewable energy equipment and on profits and personal income for those installing renewable sources for self-consumption or supplying the SEN, for up to eight years.