On a Coral Bay listing, solar panels on the roof look like part of the house. What makes them pay, though, is a billing agreement with the Virgin Islands Water and Power Authority, and that agreement ends at closing. WAPA put it plainly in an October 2025 notice: Net Metering and Net Energy Billing agreements "do not transfer automatically with property sales," and new owners must apply for enrollment.
That one rule changes how to value a solar home on St. John's east end. The buyer is not taking over the seller's arrangement. They are applying for a new one, under whatever rules apply to that system's size, and on a grid whose backup plan for Coral Bay is scheduled but not yet built.
The Agreement Ends When the Seller Leaves
A seller's electric bills only show how the system performed under the seller's enrollment. After closing, the new owner applies to WAPA. For a system on the newer program, WAPA's Net Energy Billing page describes an application that reviews the solar system design, checks interconnection requirements, and confirms the needed permits and certifications. WAPA installs a bidirectional meter, and the one-time interconnection fee is $250.
So the system has to clear a review in the buyer's name. Any gaps in its permit history or design paperwork come up at that point, after the purchase money has already changed hands.
Ten Kilowatts Decides Which Rules You Get
The second issue is size. Under 12 V.I.C. § 1149, net metering expired on January 1, 2025, for residential systems larger than 10 kilowatts AC. Beginning January 1, 2026, those larger systems moved to Net Energy Billing. Residential systems of 10 kWac and under stayed on the original net metering structure.
The two programs credit exported power very differently, according to WAPA's own description:
| Net Metering, 10 kWac or less | Net Energy Billing, over 10 kWac | |
|---|---|---|
| Credit for exported power | Full retail-rate credit | 75% of the LEAC |
| How credits carry | Rolled forward under the original structure | Reconciled monthly, not rolling indefinitely |
| Status after a sale | Not automatic; new owner applies | Not automatic; new owner applies |
This works against the usual listing logic. A larger array sounds better in the description. But a system over the 10 kWac line exports at a fraction of the LEAC, while a smaller one keeps full retail credit. WAPA also flagged a related problem. Some systems rebuilt after the hurricanes grew past 10 kWac, and their owners were told to contact WAPA's VIEnergize department about moving to the new program. A Coral Bay home whose solar was expanded during a rebuild may sit on a different side of the line than its original paperwork shows.
There was also a reset. All Net Metering credits went to zero at midnight on December 31, 2025, so any banked balance a seller mentions from before that date no longer exists.
What a Credit Is Worth When the LEAC Moves
Net Energy Billing credits are tied to the LEAC, the Levelized Energy Adjustment Clause. WAPA's electric rate page lists it as a separate charge from the base rate, covering fuel along with other costs. This means an NEB credit rises and falls whenever the LEAC is reset.
That number just changed. The St. Thomas Source reported that on October 13, 2026, the Public Services Commission approved a three-cent-per-kilowatt-hour increase to the LEAC for November and December 2026, and WAPA estimated about $12 more per month for a household using 400 kWh. The Public Services Commission's release puts the new figure at 25.2246 cents, up from 22.2246 cents. At 75% of that LEAC, an NEB export credit for those two months works out to roughly 18.9 cents per kWh. WAPA said it is still absorbing about 4.5 cents per kWh in fuel costs even after the increase, and the commission said WAPA can ask to extend the adjustment for the next filing period.
The LEAC is one component of the bill, not the full rate. For a buyer, the point is that an NEB system's value moves with a figure the PSC revisits every few months. A seller's twelve months of bills reflect last year's LEAC and possibly last year's program.
The Coral Bay Part: Backup Power Is Scheduled, Not Installed
A credit is worth something only when the grid is up, and that is the less settled part of the picture on St. John.
On October 19, 2026, WAPA told a Senate committee that rolling outages could return to St. Thomas and St. John. Three generating units at the Randolph Harley Power Plant are out of service: Unit 23, Unit 15 and Wärtsilä Unit 5. According to the St. Thomas Source account of the hearing, Unit 15 is now projected for January 2027, Unit 23 for October to December 2027, and Unit 5 has no return date.
The fix aimed at St. John goes partly through Coral Bay. In April, WAPA's board approved buying standby generators, two for Frank Bay and two for Coral Bay. Executive Director Karl Knight told the board, as the St. John Source reported, that "These are not prime power generators." He described them as emergency units with black start capability, meant to keep St. John supplied if it is cut off from the main plant. He also stated a goal of getting emergency power onto St. John "within the next four to six months."
By mid-October, four Cummins units totaling 10 megawatts were in the territory and stored at Randolph Harley. They had been load-tested and had air permits, but other permits and site preparation were still outstanding. A DPNR public permitting hearing is scheduled for October 29, and installation is targeted for January 2027.
Behind the generators is a longer-term plan. WAPA's St. John microgrid includes a switching station in Coral Bay, battery energy storage, and a future solar farm. In April, Coral Bay's engineering was reported as about 60% complete. That puts Coral Bay at the center of St. John's planned grid backup. For a buyer closing this winter, though, that backup is still a timeline.
Batteries Come With Their Own Rules
A battery covers what WAPA's backup can't yet. The territory's battery programs have conditions that matter for someone buying a second home.
The Virgin Islands Energy Office lists VIBES as a federally funded rebate of up to $6,000 for qualifying automatic backup systems between 3 and 21 kWh, with initial funding of $800,000. Eligibility includes full-time territorial residency, owning the home or business, and an active WAPA bill in the applicant's name. A part-time owner may not meet the residency requirement. Even a full-time buyer can't apply until the WAPA account is in their name, which is another step after closing.
Under VIBES 2.0, the Energy Office's September 16, 2026 release offers $1,000 per eligible Tesla Powerwall enrolled, up to $4,000 during the 2026 launch year. Owners can set a minimum backup reserve or opt out of events. Participation is limited to customers enrolled in, or applying to, WAPA's Net Metering or Net Energy Billing programs. So the battery incentive depends on the same solar re-enrollment the buyer has to complete after the sale. The Energy Office reported on September 16, 2026, that 190 batteries at 80 St. Thomas and St. John sites dispatched about 800 kW in a test, with about $244,000 in incentives paid or in process.
One more WAPA condition applies here. Any system found sending power into the distribution lines during an outage will have its meter removed until compliance is verified. How a home's backup is wired is a grid-connection question, not just a matter of convenience.
What to Collect Before Closing
These questions follow from the issues above:
- What is the system's rated size in kWac? This shows whether it falls under net metering or Net Energy Billing.
- Was the array expanded after the hurricanes? If so, check whether the paperwork shows the current size.
- Which program is the seller on, and since when? A credit balance from before January 1, 2026, is gone.
- Are the design documents, permits and interconnection approvals available? The buyer's application will need them.
- How is the battery wired? Check that it can't feed power into WAPA lines during an outage.
- Will the buyer qualify for VIBES or VIBES 2.0? Residency, a WAPA bill in the buyer's name, and solar enrollment all matter.
Everything here describes WAPA and Energy Office programs as their own pages currently explain them. It is general information, not legal, tax or financial advice, so please confirm your situation with WAPA, a licensed solar professional, or your attorney or accountant.
FAQ
Does the solar billing arrangement stay with a Coral Bay home when it sells? No. WAPA says Net Metering and Net Energy Billing agreements do not transfer automatically with a property sale, and the new owner has to apply for enrollment.
Why does 10 kilowatts matter? Residential systems over 10 kWac moved to Net Energy Billing on January 1, 2026, and are credited at 75% of the LEAC. Systems of 10 kWac or less kept the original net metering structure.
When are Coral Bay's standby generators expected? WAPA has targeted installation for January 2027, following a DPNR permitting hearing scheduled for October 29, 2026.
If a Coral Bay home with solar is on your list, Tropical Properties VI can help you gather the system size, program history and paperwork before you make an offer, so you know what you're applying for after closing. Browse Properties and bring us the listing.
