Federal Control Board Sues Over Puerto Rico's Net Metering Law

SAN JUAN, Puerto Rico – A federal control board overseeing Puerto Rico's finances has filed a lawsuit challenging amendments to the island's net metering law, which compensates households with solar panels for their contributions to the energy grid. The board clarified that it does not aim to eliminate net metering or alter the current program, asserting that a favorable outcome in the lawsuit would not change the existing rooftop solar arrangements. In April, the board mandated Governor Pedro Pierluisi and the Puerto Rican legislature to amend or repeal the law, which restricts the energy bureau from modifying the net metering program until at least 2031. The law also guarantees that current terms will remain in effect for an additional 20 years, potentially extending benefits to customers until 2051. The lawsuit highlights concerns that high net metering rates could lead to decreased demand for the power company's services as more customers opt for distributed generation. Opposition to the board's actions has emerged from a group of federal lawmakers, including U.S. Rep. Raúl Grijalva, who warn that the proposed changes could undermine the viability of rooftop solar in Puerto Rico. They argue that any reduction in net metering would hinder the island's energy transformation, which is critical given its struggling power infrastructure. The board's lawsuit also requests that the governor provide an estimate of the law's financial impact on government revenues and expenditures. Supporters of the net metering law argue that it is essential for making renewable energy sources more accessible in a territory facing high electricity rates and a deteriorating power grid.