Cuba receives another 5,000 solar systems from China, expands renewable energy incentives

The Chinese government has delivered a second donation of 5,000 photovoltaic systems to Cuba to electrify isolated rural homes and support essential services, including health centers, emergency medical facilities, daycare centers, homes for children without parental care, and bank branches. The equipment will be distributed across the country’s 169 municipalities.

Managed by the China International Development Cooperation Agency, the systems have a storage capacity of 14.3 kWh per unit, approximately twice that of the equipment supplied in the previous batch. Cuban authorities also report a power output of 3.6 kW per system, although official communications incorrectly use kWh, a unit of energy, to express power.

If the 3.6 kW rating is confirmed, the shipment represents approximately 18 MW of distributed PV capacity and 71.5 MWh of combined storage capacity.

The new batch follows a donation of 5,000 2 kW systems delivered by China in November 2025. That equipment was primarily intended for isolated rural homes in eastern Cuba and areas affected by Hurricane Melissa.

Local utility Unión Eléctrica began installing the initial 5,000 systems this year. Of these, 2,671 were allocated to facilities classified as vital within municipalities, while the remaining 2,329 were installed at isolated homes, including some that had previously lacked electricity service. The off-grid systems are designed to maintain basic electricity supply during grid outages.

The latest donation coincides with the entry into force of two regulations from Cuba’s Ministry of Finance aimed at promoting renewable energy.

Resolution 179/2026, published on Aug. 7 in the Official Gazette, amends Resolution 114/2026, issued in May. It establishes a rate of CUP 90 ($3.30) per kWh for electricity generated from any renewable source and supplied to the National Electric Power System (SEN), regardless of whether the producer is residential or non-residential or the time of day.

Resolution 114/2026 had previously increased the remuneration from 3 CUP/kWh for non-residential producers and 6 CUP/kWh for residential users.

The ministry said the latest change extends the rate to all renewable energy sources. State media has specified that this includes electricity generated from plant biomass and wind energy, among other sources. Although Resolution 114/2026 already referred generally to “renewable energy sources,” the August amendment explicitly broadens the application of the rate.

Resolution 180/2026, meanwhile, expands tax incentives for renewable energy adoption. It exempts photovoltaic systems and their main components from customs duties, along with solar water heaters, PV pumps, small wind turbines, biodigesters, biogas equipment, solar-powered lighting and air-conditioning systems, renewable-powered electric vehicle chargers, and biomass-processing equipment.

The regulation also provides exemptions from corporate profit and personal income taxes, based on the value of the investment, for legal entities and individuals that install renewable energy systems for self-consumption, economic activities, or electricity supplied to the SEN. The exemption applies during the investment payback period, for a maximum of eight years.

Additional incentives apply to renewable energy investments at public service centers, social and care facilities, multifamily buildings, homes with residents who depend on electrically powered medical equipment, public lighting systems, and water supply infrastructure.

Revenue from the wholesale or retail sale of renewable energy technologies and systems is also exempt from sales tax for one year.