No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeNewsCosta Rica's Sun Tax Hinders Solar Energy Adoption

Costa Rica’s Sun Tax Hinders Solar Energy Adoption

Despite the challenges Costa Rica has been facing regarding energy production, the government has resisted lowering tariffs on alternative energy sources, such as solar panels. On August 23rd, the Board of Directors of the Public Services Regulatory Authority (ARESEP) received a new tariff methodology proposal to charge those who produce their own electricity through solar panels.

ARESEP confirmed that a high tax remains in place for those wishing to enter this market. The private sector calls it the “sun tax,” which refers to charging those who install these panels because they remain connected to the national grid. Technically, it is called an “access tariff.”

The new methodology changes the way the tariff is calculated; it will no longer be based on total consumption but on the amount of electricity produced by the panels.

ARESEP argues that it is complying with Law 10.086, which has been in force since December 2021 and was intended to promote the deployment of this technology in Costa Rica. They further argue that eliminating the access tariff would effectively subsidize those installing solar panels, as they would still have the ability to draw from the national grid without paying for that access.

With the entry into force of the new law in 2021, ARESEP claims to have complied with the mandate to create a methodology that avoids subsidizing these customers.

Prior to Law 10.086, the access tariff was calculated based on any surplus. With the approval of this law, the tariff was calculated based on so-called “natural consumption,” i.e., what was produced and what was consumed from the conventional grid; however, this was suspended. The new proposal involves calculating the access tariff based on what is produced by the panels.

The connection charge can range from ¢16 to ¢30 per kilowatt hour (kWh), depending on each distributor. The installation of solar panels is usually the most common way to produce clean energy on this scale. However, few new contracts have been signed in Costa Rica since 2021, when the new law came into effect.

Earlier this year, members of the energy sector indicated that this approach was not the way forward and that the country was regressing in this area. “What we are doing is discouraging growth among those with solar panels, and we are moving backwards,” commented Laura Gutiérrez, a representative of the sector.

Earlier this year, the Costa Rican Electricity Institute (ICE) announced power outages due to extremely dry weather and a lack of proper planning by the institution. They also noted that the country is demanding more energy, and it’s complex to meet this demand.

Citizens have criticized ARESEP’s stance, believing its methodologies discourage those who want to install solar panels.

Solar energy is an ideal alternative for Costa Rica, a country blessed with year-round sunshine and a reputation for green energy. However, authorities must act swiftly to balance the needs of the people with the urgent demands of the planet, encouraging rather than discouraging the adoption of clean energy.

Trending Now

El Salvador’s Fireball Festival Lights Up Nejapa

If you are in El Salvador this weekend and want to see something you will not find anywhere else, head north from San Salvador...

Wildlife Trafficking in Costa Rica Moves onto Social Media

Currently unknown numbers of wild animals are illegally pulled from Costa Rica's forests, rivers and coastlines every year, according to the Attorney General's Office,...

How El Nino is choking the Panama Canal

The Panama Canal will restrict the number of vessels transiting the crucial waterway from Friday for the second time ever due to drought caused...

The Hidden Climb in Tortuguero Most Visitors Never Discover

Just beyond Tortuguero’s famous canals, Cerro Tortuguero offers a rainforest hike and one of the most impressive panoramic views on Costa Rica’s Caribbean coast.

Germany’s Consul in Costa Rica Dies in Alajuela Lagoon Accident

Costa Rica's Foreign Ministry confirmed the death of Mario Genz, a consul at the German Embassy in San José, who drowned Saturday afternoon at...

US Demands Nicaragua Release Brooklyn Rivera’s Relatives

The United States on Monday demanded that Nicaragua’s government release relatives of Indigenous leader Brooklyn Rivera, who died in prison three months ago. Rivera,...

Messi Retires from Argentina After 20 years with the National Team

Lionel Messi announced today that he is retiring from the Argentina national team, closing a 20-year international career that ended with a World Cup...

Rincón de la Vieja Volcano Erupts Again in Costa Rica

The Rincón de la Vieja Volcano gave us yet another eruption yesterday afternoon, sending a column of steam approximately 1,000 meters, or 3,280 feet,...

Dollar Drops Again as Costa Rica Gets More Expensive for Expats and Tourists

The U.S. dollar has slipped below ₡450 again in Costa Rica, continuing a trend that has steadily reduced the spending power of foreign residents...
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel