DOE redirects residential solar systems funding to energy grid

The $365 million that had been earmarked to support rooftop solar and battery storage installations slated to begin construction in 2026, will now be redirected to support practical fixes and emergency activities related to Puerto Rico’s fragile energy grid.

By The Star Staff

The U.S. Department of Energy (DOE) on Wednesday announced it will redirect $365 million in funding to address Puerto Rico’s grid resiliency and expand access to affordable, reliable, and secure power supply for the island.

The funding, allocated through the Puerto Rico Resilience Fund (PR-ERF), will be deployed to support practical fixes and emergency activities that offer a faster, more impactful solution to the current crisis, benefiting critical facilities such as hospitals and community centers, the DOE said.

The announcement follows U.S. Secretary of Energy Chris Wright’s decision to issue two emergency orders for Puerto Rico just weeks after the most recent islandwide blackout, underscoring the urgency of deploying immediate solutions for the millions of people who depend on Puerto Rico’s fragile grid to power their homes and businesses.

“With President Trump’s leadership, the Department of Energy is focused on fortifying America’s electric grid and ensuring the reliable delivery of electricity across the country, and nowhere is this more needed than in Puerto Rico,” Wright said. “By redirecting these funds, we will ensure taxpayer dollars are used to strengthen access to affordable, reliable and secure power, benefiting more citizens as quickly as possible. This strategic shift allows us to address the root causes of the grid’s instability, strengthening the grid’s fragile infrastructure and delivering lasting relief for Puerto Rico.”

Gov. Jenniffer González Colón noted that “Puerto Rico is facing an energy emergency that requires we act now and deliver immediate solutions.”

“Our communities, businesses, and healthcare facilities cannot afford to wait years, nor can we rely on piecemeal approaches with limited results,” she said. “Rather than impacting a few customers, deploying these funds for urgent projects that improve the resiliency and reliability of our grid will have widespread, lasting benefits for all 3.2 million Americans in Puerto Rico.”

The $365 million funding was initially awarded by the Biden administration in December 2024 to support rooftop solar and battery storage installations slated to begin construction in 2026. The DOE said it is reprioritizing those awards and will redirect funding to support technologies that improve system flexibility and response, power flow and control, component strength, supply security, and safety. The redirection of the funds will expand access to reliable power for millions of people rather than thousands and generate a higher return on investment for taxpayers while advancing grid resiliency for Puerto Rico, the agency said.