Solar Thermal Energy Plan

Source: IEA/IRENA Renewables Policies Database
Last updated: 21 April 2016

The objective of the plan is to stimulate the incorporation of solar thermal panels in Uruguayan houses to heat water and decrease electricity consumption. In order to achieve its objective, the plan aims to address two main hurdles: high initial investment costs and the unfamiliarity of the benefits of renewable energy.

The activities under the plan are as follows:

  • The plan provides optional five-year ficing on a not-for-profit basis from the Public Mortgage Bank (BHU), with payments included in the electricity bill. 
  • Systems are installed by accredited private companies and include a 5 year warranty and full insurance (including theft, weather, vandalism, etc.) from the public insurance bank (BSE). 
  • The Regulator of Water and Energy (URSEA) supervises the quality and the efficiency of the equipment.
  • As an incentive the National Electricity Utility (UTE) offers the first 2000 users an electricity bill discount of 700 UYU /month (30 USD/month) for 24 months. This is equivalent to a subsidy of 50% of the installation costs.

UTE justified its subsidy as a commercial decision based on avoided investment costs.

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