Energy

Transformation Is Creating Opportunity

Powering the Future

Puerto Rico is charting a sustainable path in the clean energy sector, establishing itself as a renewable energy hub. With a robust manufacturing sector and over $77 billion in federal funding post-Hurricane Maria focusing on renewable energy and grid modernization, the island is primed for innovation. An urgent demand for new energy solutions, a unique array of tax incentives for renewable energy, and strong support from local and international collaborations position Puerto Rico as a hotspot for investment in solar power and other renewable energy sources.

100%

renewable energy by 2050, making solar power a key player in the transition

100%

exemption on capital gains, dividends and sales tax on green energy products, highlighting the benefits of clean energy tax incentives

2,900+

hours of sunshine annually, ideal for solar energy projects and establishing Puerto Rico as a premier solar power hub

CONNECT WITH BUSINESS DEVELOPMENT

Companies Already Doing Business in Puerto Rico

Local Connections: Energy

Puerto Rico’s energy landscape is backed by comprehensive institutional support and dynamic networking opportunities, establishing the island as a key hub and sector leader:

Puerto Rico Energy Bureau (PREB)
Genera Puerto Rico
LUMA Energy
Renewable Energy Contractors Association (ACONER, in Spanish)
Solar Energy and Storage Association (SESA)
Puerto Rico Electric Power Authority (AEE, in Spanish)
Puerto Rico Manufacturers Association (PRMA)

Incentivizing Growth

Puerto Rico’s energy sector is bolstered by an array of strategic tax incentives, fostering business growth and innovation:

4% fixed income tax rate on qualifying income
Capital gains and dividends benefit from a 100% tax exemption
75% exemption on property tax
75% reduction in municipal taxes for construction activities
50% exemption on municipal license taxes
Certified green energy equipment is fully exempt from state excise, sales and use taxes
Standard 15-year tax exemption grant, renewable for another 15 years
Invest in R&D and receive up to a 50% tax credit on your expenditures

Sector Dynamics and Growth

Robust Manufacturing Influence: Manufacturing constitutes nearly half of the local economy, driving energy innovation in renewable fuels and Combined Heat and Power (CHP) systems, supported by federal tax credits and state solar incentives.
Research and Innovation: Puerto Rico is ripe for R&D in renewable energies, supported by institutions like the University of Puerto Rico-Mayagüez (UPRM), the Puerto Rico Energy Center, and the National Renewable Energy Laboratory (NREL), reinforcing its status as a renewable energy hub. These initiatives attract clean energy companies to invest in Puerto Rico’s energy sources.
Skilled Workforce: Puerto Rico boasts a skilled workforce with expertise in solar power and renewable energy technologies, ready to contribute to the energy sector’s growth. This workforce is crucial for the development of solar power in Puerto Rico and other green energy projects.
Regulatory Support: Backed by the Puerto Rico Energy Bureau and other regulatory entities, the sector is well-regulated and investor-friendly, benefiting from clean energy tax incentives and support for sustainable energy companies.

Puerto Rico is positioned as a leader in the renewable energy industry, with a focus on solar power. The island’s commitment to power energy transformation ensures a bright future for renewable energy and sustainable development. With investments in solar power in Puerto Rico and other renewable energy sources, the island is set to become a model for innovative and smart energy solutions.