Total installed solar photovoltaic (PV) capacity in Dominican Republic is approximately 1,077 MW.⁶

The Dominican Republic is projected to achieve a total solar panel production capacity of approximately 1,800 MW by 2025.⁷

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• Natural gas – $14.10/kW
• Coal – $82/kW (The government is covering nearly 60% of the costs to subsidize fossil fuels used for electricity generation.)
• Hydropower – $42.01/kW
• Wind power – $26.47/kW
• Solar power – $15.33/kW
• Biomass – $29.37/kW

As of 2022, the electricity generation mix in the Dominican Republic is as follows:¹⁰

• Natural Gas: 37.6%
• Coal: 28%
• Unspecified fossil fuels: 20%
• Hydropower: 4.6%
• Wind energy: 6.1%
• Solar energy: 2.6%
• Biofuels: less than 1%

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Average daily availability varies significantly based on location and infrastructure improvements. In urban regions, efforts have been made to provide up to 24 hours of continuous electricity to about 60% of customers due to ongoing infrastructure upgrades and initiatives aimed at reducing outages.

However, blackouts can last over 10 hours daily in some regions, particularly in poorer neighborhoods.

Overall, the country is grappling with systemic issues stemming from an outdated distribution network, resulting in significant technical losses that average about 39.2%.

The Dominican Republic has around 200,000 rooftop solar installations, including residential and commercial systems. This initiative aims to improve access to renewable energy and electricity reliability. The government, alongside local partners, is working to add 600 MW of rooftop solar capacity, targeting low- to middle-income communities and small businesses.⁹

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As of now, the Dominican Republic has 9 operational solar plants.

The Girasol Solar Park in Yaguate, San Cristóbal province, has more than 268,000 solar panels alone.

Additionally, the National Energy Commission (CNE) has announced that 18 solar plants are currently under construction and are expected to be operational by 2025.

In the Dominican Republic, significant strides are being made in off-grid and microgrid solar projects aimed at electrifying rural areas and schools.¹³

Recently, the Ministries of Education and Energy and Mines announced plans to install solar panels in 314 schools across the country, enhancing energy access for students.¹⁴

Additionally, various rural villages are pursuing solar microgrids to achieve reliable electricity, reflecting a global trend toward sustainable energy solutions. One notable example is the microgrid project in Sabana Real, which serves around 225 people, providing them with a consistent power supply. These initiatives are particularly crucial given the challenges posed by hurricanes, which often disrupt traditional power sources.¹⁵

There are currently over 1,300 MW of solar photovoltaic projects under construction across various locations in the country. This includes significant projects like the 83.4-MW Ardavin Solar plant and the 58.48-MW La Victoria solar farm, which are set to enhance the overall solar capacity and meet rising electricity demand.¹²

Companies such as F&S Solar plan to install over 500 MW of solar capacity by 2025, indicating strong future demand for solar panels as part of the country’s broader renewable energy strategy.¹⁶

The rising costs of fossil fuel imports and a historical record of electricity demand exceeding 80 GWh per day further drive the need for increased solar installations.¹⁷

The Dominican Republic aims for 25% of its electricity consumption to come from renewable sources by 2025, up from around 19% in 2023.¹⁸

• The average monthly salary in Dominican Republic is approximately $404.¹⁹
• Solar Energy Installation Manager: the average monthly salary is approximately $466.²⁰
• Solar Photovoltaic Technician: the average monthly salary is approximately $189.²¹
• Generation Engineer: the average monthly salary is approximately $288.²²

The current population of Dominican Republic is 11,451,520.²³

Estimate for Factory Rent ²⁴

Monthly industrial and logistics rent prices in Santo Domingo are approximately $5 – $11 per m2, depending on the location and specific characteristics of the property.

Industrial Electricity Rates ³

As of December 2023, the average electricity price for businesses in Dominican Republic is approximately $0.169 per kWh.

Water Costs ²⁵

The water tariff for drinking water in Dominican Republic rose from approximately $5.79 per cubic meter to around $8.29 per cubic meter. This adjustment reflects ongoing changes in water pricing, driven by higher-than-expected leakage losses in 2022, which required a revision of the tariff structure to ensure the continued quality and reliability of service.

Salaries and Wages ²⁰²¹²²

Monthly salaries of workers in solar industry in Dominican Republic ranges from $189 to $466, depending on the position.

Rent for Office Space ²⁶

The monthly rent for office space in Dominican Republic varies significantly based on location, size, and specific features of the properties, ranging approximately $12 – $35 per m2.

Insurance ²⁷

The average spending per capita on non-life insurance in Dominican Republic is projected to be approximately $344 in 2024.

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Energy Mix

The current energy generation relies heavily on fossil fuels, but recent developments indicate a growing commitment to diversifying the energy mix towards renewables.

As of September 2023, the country has 10 wind farms, 9 solar plants, and 1 biomass plant, which collectively account for approximately 19% of the total installed capacity. The aim is to raise this figure to 25% by 2025.

Key Institutions

Several key institutions oversee the energy sector in the Dominican Republic:

• National Energy Commission (CNE): Responsible for policy-making and implementing national energy plans.
• Superintendency of Electricity (SIE): Regulates the electricity sector and ensures compliance with legal frameworks.
• Ministry of Energy and Mines (MEM): Oversees energy policy and regulation.

These institutions work together to implement the National Energy Plan (PEN) 2021-2036, which aims to transform the energy landscape.

Infrastructure and Interconnections

The country’s electricity infrastructure includes the National Interconnected Electric System (SENI), which connects various generation sources to distribution networks. The total installed generation capacity connected to SENI is around 5,631.47 MW, with average peak demand at approximately 3,312 MW. Despite having sufficient generation capacity, systemic issues such as high technical losses (averaging 39.2%) lead to frequent outages, highlighting the need for infrastructure improvements.

Export / Import

The Dominican Republic imports a significant portion of its energy needs, primarily relying on fossil fuels. The historical dependence on imported oil has prompted a shift towards renewable energy development as a strategy to reduce costs and enhance energy security.

Policy Goal

The government has set ambitious goals for renewable energy integration, aiming for 25% of electricity generation from renewable sources by 2025. This is supported by legislation such as the Renewable Energy Incentives Law (57-07), which offers tax incentives for renewable projects. The country also aims to reduce greenhouse gas emissions by one-third from 2010 levels by 2030. Recent initiatives include substantial investments in infrastructure improvements and distribution efficiency projects to enhance service reliability.

The regulatory landscape for solar panel production in the Dominican Republic is currently evolving, driven by the increasing demand for solar energy and the need to address operational challenges faced by electricity distribution companies¹¹

The primary legislation governing renewable energy, including solar power, is Law 57-07, which was established to promote the development of renewable energy sources. This law provides various incentives such as a 100% customs tax exemption on imported equipment and materials, and a 10-year income tax exemption for profits derived from renewable energy production.³²

The new regulations are expected to be published by the end of 2024 and will focus on the approval, interconnection, and operation of solar panel installations. Proposed changes include transitioning from net metering to net billing systems, which would limit the amount of energy injected into the grid and promote self-consumption among users. The goal is to create a balanced framework that supports both the growth of solar energy and the financial viability of distribution companies.³³

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Renewable Energy Incentives Law (Law 57-07): a cornerstone of the government’s strategy to boost renewable energy investments. This law provides tax incentives for businesses involved in renewable energy projects, including a 100% customs tax exemption on imported equipment and materials, as well as a 10-year income tax exemption on profits from renewable energy production.

Public-Private Partnerships: the government has facilitated partnerships with private investors to develop large-scale Dominican Republic solar projects. Significant Investments:

• Montecristi Solar Farm: a major investment of approximately $62 million was arranged by DEG (Deutsche Investitions- und Entwicklungsgesellschaft) for this project, which aims to provide power to around 100,000 households.
• El Soco Photovoltaic Solar Park: completed in 2022 with an investment of $93 million
• ACCIONA: developing several solar plants, including a new 63 MW plant in San Juan de la Maguana expected to be operational by 2025.

Subsidies and Financial Support: Dominican government has also engaged in various financing arrangements to support solar projects:

• Private investments totaling approximately $780 million have been allocated for 8 renewable energy projects announced by the Dominican Corporation of State Electric Companies (CDEEE) in 2018.
• Carbon credit schemes are being utilized to attract further investment into solar projects, providing financial stability and enhancing project viability through community engagement initiatives.

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Current Solar Projects

Montecristi Solar Farm:

• Capacity: 116 MW
• Location: Montecristi Province
• Details: This project, supported by DEG and other financial institutions, is expected to provide electricity to approximately 100,000 households and reduce CO2 emissions by about 108,000 tonnes annually. The entire plant was completed in 2019.

La Victoria Solar Farm:

• Capacity: 58.48 MW
• Investment: $82 million
• Location: Santo Domingo Norte
• Details: Recently inaugurated by Vice President Raquel Peña, this project contributes to the growing renewable energy landscape in the country.

Ardavin Solar Plant:

• Capacity: 83.4 MW
• Location: Gaspar Hernandez
• Details: This project incorporates a storage system of 27.5 MW, enhancing its reliability and efficiency.

Pedro Corto Solar Plant:

• Capacity: 63.35 MW
• Location: San Juan de la Maguana
• Projected Operation: By the end of 2025
• Details: Developed by ACCIONA Energía, this plant will utilize single-axis trackers to optimize solar exposure and is expected to avoid over 130,000 tons of CO2 emissions annually.

Cotoperí Photovoltaic Project:

• Capacity: 162 MW (combined across three plants)
• Location: San Juan de la Maguana
• Details: This project, also developed by ACCIONA, aims to be one of the largest solar complexes in Central America and the Caribbean.

Projected Solar Initiatives

Canoa Solar Park:

• Capacity: 25 MW (first phase)
• Status: Under construction
• Details: This project is part of ongoing efforts to expand solar capacity in the region.

Sabana Yegua and Sabaneta Projects:

• Status: Bidding initiated by Egehid for execution and management of these projects.

Expansion of Monte Plata Solar Project:

• Status: The second phase has been approved for an additional capacity of 30 MW, bringing its total to 60 MW.

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EDP Energías Renovables

• Headquarters: Lisboa, Portugal
• Website: https://www.edp.com/es
• Details: Developer of the EDP-Baní Solar Project with a proposed capacity of 200 MW. This project is pivotal in expanding solar energy generation in the country.

AES Andrés

• Headquarters: Santo Domingo, Dominican Republic
• Website: https://www.aesdominicana.com/en
• Details:Leading energy company in the Dominican Republic, committed to providing reliable and sustainable electricity through innovative solutions and a focus on environmental stewardship. Involved in developing various renewable projects, including a proposed 65 MW solar plant.

EGE Haina

• Headquarters: Santo Domingo, Dominican Republic
• Website: https://www.egehaina.com/
• Details: EGE Haina manages multiple renewable energy initiatives, such as solar power plants, and is committed to enhancing its portfolio with clean energy sources. The company is dedicated to producing efficient and sustainable electricity while emphasizing innovation and environmental stewardship.

Solarta

• Headquarters: Santo Domingo, Dominican Republic
• Website: https://solarta.com.do/
• Details: Specializes in solar panel installation and renewable energy solutions for residential and commercial sectors, contributing to local solar adoption.

KAYA Energy

• Headquarters: Santo Domingo, Dominican Republic
• Website: https://www.kayaenergy.com/
• Details: Kaya Energy is dedicated to providing innovative renewable energy solutions, specializing in solar energy solutions and battery storage systems, that empower businesses and communities to achieve sustainability and energy independence.

Rensa Solar

• Headquarters: Santo Domingo, Dominican Republic
• Website: https://rensa.net.do/
• Details: Offers complete solar solutions, including installation and maintenance services for both residential and commercial clients, boasting over 30 MW of installed solar capacity.

Trix Energy

• Headquarters: Santo Domingo, Dominican Republic
• Website: https://www.trixenergy.com/
• Details: Offers a range of renewable energy solutions with a focus on solar technology, promoting sustainable practices across various sectors.

F&S Solar

• Headquarters: Euskirchen, Germany
• Website: https://fs-sun.com/
• Details: Developed the Montecristi solar park, with a total capacity of 116 MW. Plans to install over 500 MW of solar capacity by 2025, focusing on sustainable systems in rural areas.

InterEnergy Group

• Headquarters: Miami, USA
• Website: https://interenergy.com/
• Details: Engaged in renewable energy projects across Latin America and the Caribbean, contributing to solar energy initiatives within the Dominican Republic.