Costa Rica doubles feed-in rates for new distributed solar producers
Summary
Costa Rica’s state utility has approved an average 111% rate increase for new distributed generators under revised eight-year contracts.
<p class="p1"><span class="s1">Costa Rica’s state utility has approved an average 111% rate increase for new distributed generators under revised eight-year contracts.</span></p><p><strong>From <a href="https://www.pv-magazine-latam.com/2025/10/06/costa-rica-duplica-pagos-a-generadores-distribuidos-con-aumento-promedio-del-111/" rel="noopener" target="_blank">pv magazine LatAm</a></strong></p>
<p>The Costa Rican Electricity Institute (ICE) has approved a new remuneration scheme for distributed generation, increasing the price it pays for surplus electricity by an average of 111%. The measure applies only to new contracts signed under the updated framework.</p>
<p>Official data show 1,443 grid-connected customers in Costa Rica with a combined capacity of 34 MW.</p>
<p>The new tariff structure sets differentiated rates by region, energy source, and time of day. One category covers variable sources such as solar without storage, while another applies to firm sources, including solar with batteries or biomass. Facilities that meet stability requirements will qualify for higher rates.</p>
<p>Contracts under the new scheme will last eight years and can be extended for two additional one-year periods. ICE said the rates will be reviewed periodically based on operational costs and national market conditions.</p>
<p>The adjustment forms part of the regulatory overhaul of distributed generation introduced in 2023, which had slowed new connection requests. ICE expects the revised structure to restore investor confidence and encourage small producers and companies to supply power to the grid under improved compensation terms.</p>
<p>Costa Rica reached 73 MW of installed solar capacity by the end of 2024, according to the International Renewable Energy Agency.</p>