The utilities regulator has issued a consumer guide and statement confirming that people can generate and consume their own solar power in Cayman, without being required to connect to the power grid.
The Utility Regulation and Competition Office, known as URCO or OfReg, published the guidelines and regulatory statement on 19 June, following complaints, to clarify how the existing law applies to behind-the-meter solar PV and battery storage systems used by consumers for their own use without exporting power to Caribbean Utilities Company’s grid.
The statement says a self-use, non-grid-connected solar array is “materially identical to the consumer-owned onsite diesel and propane standby installations”.
URCO’s statement confirms that consumers can lawfully install and operate renewable energy systems for their own use, without requiring a separate export-and-credit programme, such as CUC’s Distributed Energy Resources (DER) or Consumer Owned Renewable Energy (CORE) schemes, where no electricity is being exported to the grid.
However, it clarifies that consumers must use listed equipment; comply with Building Code safety and electrical standards; ensure the system cannot export to the grid; maintain a visible and lockable disconnect; and notify CUC of the installation.
It added, “CUC must not condition supply or service on enrolment in CORE or DER for a non-exporting customer, must not impose any standby, capacity or analogous charge in the absence of [URCO’s] approval.”
Petition
The release of the statement and guide came after the circulation of a petition – which, as of 22 June, had garnered 735 signatures – that stated residents who had legally purchased solar and battery systems from licensed installers had been told by CUC that their systems were non-compliant.
The petition claimed there was “no technical, legal, or regulatory basis for a utility to assert jurisdiction over equipment that is not connected to it” and called on the regulator to address the issue.
“When it came time for inspections, CUC objected and argued that the systems were not compliant with the solar programmes they control, despite the fact that government policy allowed them and the Planning Department had approved them,” James Whittaker, founder of Cayman Renewable Energy Association and CEO of rooftop solar installer GreenTech Group, told the Compass earlier this month.
Following the issuance of the regulator’s statement, Whittaker said this week that his association welcomed URCO’s reaffirmation “of consumers’ legal right to install and operate self-consumption solar systems – providing consumers with alternatives to CUC-controlled solar programs, consistent with the National Energy Policy approved by Government”.
He added that CUC had obstructed the implementation of these systems, “including by threatening customers with disconnection from the electricity grid, mandating enrollment in their solar programs, and threatening local solar companies with criminal penalties for refusal to surrender customer information”, and said the URCO statement had confirmed that “such obstruction has no lawful basis”.
The association also called for “the immediate and full implementation of the National Energy Policy to accelerate renewable energy deployment, enhance resilience and lower consumer costs without further delays”.
URCO said it had issued its statement “to remove uncertainty and help ensure that consumers, licensees and relevant government agencies understand the framework that already governs these systems”.
In its guidelines for consumers, the regulator note that while CUC needs to be notified of all new solar installations, the power company can only refuse to approve a parallel interconnection system – where an inverter runs in parallel with CUC’s network but is locked at zero export – if it has insufficient capacity or has safety, security or technical infeasibility, and must give written reasons.
Notifying CUC
The power company told the Compass previously that it did not oppose rooftop solar “deployed in a safe, secure and equitable manner”.
CUC says that, under the National Energy Policy, customers have the right to self-consume, but must notify CUC of the details of their systems for safety reasons.
“All renewable energy generation systems are required to have air-gapped disconnect switches in line with local building and electrical code to isolate the system for safety purposes in emergencies or for routine maintenance,” CUC said in a written response to questions from the Compass on 1 June.
It added, “It is worth noting that policy is not the equivalent of law.”
Outlining its safety concerns over potentially non-complaint systems, CUC said, “Hybrid inverters can introduce specific grid risks because they can operate in synchronization with the utility network and are capable of both importing and exporting power. Even when configured not to export, these systems remain phase-locked to the grid so they can seamlessly switch operating modes if required.
“As part of this process, they may inject small amounts of power that are indistinguishable from utility generation. If not properly managed, these characteristics pose safety risks for line workers and the public.”
Therefore, the company argues, rooftop solar systems installed for self-consumption that are interconnected “are subject to the provisions of Section 60 of the Electricity Sector Regulation Act, which necessitates interconnections be via regulatory-approved interconnection programmes”.
The regulator’s board chairman, Sammy Jackson, said URCO’s statement “simply sets out what the law already provides. It gives consumers, installers and licensees clear guidance, supports responsible energy efficiency, and helps ensure the system works fairly and transparently for everyone.”
URCO also said the guidance helped to clarify the limited role of inspection and approval authorities, noting that where inspections are required, their purpose is to confirm compliance with established safety and technical standards. It said they do not create a broader power to block lawful self-consumption or impose requirements beyond those standards, stating that such activities “may prove unlawful”.
Read URCO’s full regulatory statement here.
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