El Salvador has begun implementing its new regulatory framework for renewable energy self-consumption. The General Directorate of Energy, Hydrocarbons, and Mines (DGEHM) has announced the launch of official procedures for authorizing providers and installing renewable self-consumption systems.
According to the agency, the initial procedures apply to solar photovoltaic systems.
The move implements the Law for the Promotion of Renewable Energy Use, approved by the Legislative Assembly on October 21, 2025, through Legislative Decree 436 and published in the Official Gazette on October 27. The law seeks to promote renewable generation systems for self-consumption, including energy storage and the possibility of injecting surplus electricity into the distribution grid.
The regulatory framework was completed this year with the Special Regulation for the Law for the Promotion of Renewable Energy Use. The regulation was approved through Resolution 072-E-2026 of the General Superintendence of Electricity and Telecommunications (SIGET) and published on April 20, 2026.
The regulation sets out technical, administrative, operational, tax, and procedural requirements covering the import, sale, commercialization, installation, approval, grid connection, operation, maintenance, and supervision of renewable self-consumption systems. It also defines provisions for local self-consumption, remote self-consumption, and virtual power plants.
It establishes a framework for companies involved in importing, commercializing, designing, installing, maintaining, or supervising these systems. Providers seeking to operate under the incentives established by the law must complete a qualification process and be included in the relevant registry.
The new framework also provides tax incentives for both providers and end-users. For a 10-year period, the law grants benefits related to income tax, VAT, and import tariffs for eligible activities. Users may also qualify for tax benefits when purchasing, installing, and maintaining systems through qualified providers.
The framework also allows users to monetize surplus generation. Renewable electricity that is not consumed on-site can be injected into the distribution grid, with users receiving compensation according to the tariff mechanism established by the regulator.
Energy storage is also covered by the scheme. During the presentation of the law, Daniel Álvarez, Director General of Energy, Hydrocarbons, and Mines, said the incentives extend to storage systems associated with renewable generation, enabling users to make use of electricity produced by their installations over longer periods.
The opening of the application process for providers and photovoltaic installations marks the transition from establishing the legislative and regulatory framework to its practical implementation for end-users.
At the end of 2025, SIGET reported 846.62 MW of installed photovoltaic capacity in El Salvador. Of this total, 282.30 MW was connected to the wholesale market and 564.32 MW to the retail market. The latter segment primarily comprises distributed generation systems installed at residential, commercial, and industrial sites, although it does not necessarily correspond entirely to self-consumption systems covered by the new Law for the Promotion of Renewable Energy Use.
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