In July 2024, the Regulatory Authority of Bermuda (RA) approved an 8.59% increase in the residential power tariff base rate. The announcement came after a lengthy collaboration between the Bermuda Electric Light Company Limited (BELCO) and the RA. 

Furthermore, the base rate is expected to increase by at least 3.7% in 2025. 

The new retail tariff took effect for all meter readings starting 1 August 2024. It will raise the monthly residential power bill by around $20, while households with larger bills might see their monthly spend increase by over $100. 

Bermudians already pay too much for power. In 2023, GlobalPetrolPrices.com ranked Bermuda as having the most expensive electricity in the world at $0.52 per kWh. So, naturally, RA’s order faced heavy criticism from both the Bermudian public and government officials. 

Speaking after RA’s announcement, Deputy Premier and Minister of Home Affairs Walter Roban condemned the price hike, calling it “outrageous and disheartening.” However, the minister acknowledged that the reasons driving up the cost were inevitable but maintained the rate hike was a severe blow to Bermuda residents.

Why Does Bermuda Pay So Much for Electricity?

One of the main reasons Bermudians pay a premium for power is the complicated logistics of generating electricity on the island. BELCO’s two power plants output about 145 megawatts (MW); generating power at this relatively small scale and using heavy fossil fuels imported from the mainland gets costly fast. 

Also, BELCO’s monopoly on Bermuda’s energy industry does not escape blame. Without a competing power source, supplier, or distributor, BELCO will continue to tighten its hold on the island. But actually, on that note, there was something rather interesting about this new price hike.

In addition to all the obvious reasons for the price hike — inflation, high interest rates, and increased operating expenses — BELCO cited solar power generation. BELCO requested a bump in Total Revenue Allowance partly because of low sales figures linked to increased solar PV adoption across Bermuda. Even as fewer homes draw power from the grid, the utility company still needs to cover the fixed costs of operating the legacy power plants. That cost is passed on to the remaining consumers, increasing the price per unit of power.

While neither the RA nor BELCO quoted exact figures, it’s clear that the growing trend toward solar power is making waves in Bermuda’s monopolised energy market. 

Is Solar the Way to Go? 

Thousands of homes in Bermuda have already invested in solar PVs, and thousands more are on track to join them. The reasons for embracing solar are pretty obvious. Solar energy is free — that is, after the initial investment pays for itself in a couple of years. It’s also clean, renewable energy.

The Bermuda government too is sold on the idea of solar energy generation. This is exemplified in the newly proposed Integrated Resource Plan (IRP) that, among other targets, aims at 85% of renewable energy generation by 2040 and Net Zero by 2050. We also have a pretty solid feed-in system. And in 2021, BELCO brought online a 6 MW solar installation at L.F. Wade International Airport, a pioneering project for large-scale solar power generation.

Take Control of Your Power with Greenlight 

Installing a solar PV system in your home is the best way to break your dependency on Bermuda’s costly grid.

Greenlight Energy is on a mission to help Bermudians take back control of their power by utilising one of the island’s most abundant renewable resources — good old sunlight. We specialise in installing top-tier solar PV panels and storage solutions from world-renowned brands such as REC and Tesla. Our powerful, sleek, and efficient solar generators guarantee durability, reliability, and incredible cost savings. So far, we’ve saved Bermudian families over $3 million on electricity costs.

Stop overpaying for power: Reach us at +1 441 295-3033 to get started on a high-ROI solar PV installation or explore our website for more information.