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. An urgent demand for innovative energy solutions, coupled with a unique array of tax incentives, positions the island as a hotspot for innovation and investment in solar power and other renewable energies.

Renewable energy by 2050, making solar power a key player in the transition
exemption on capital gains, dividends, and sales tax on green energy products, highlighting the benefits of clean energy tax incentives
hours of sunshine annually, ideal for solar energy projects and establishing Puerto Rico as a premier solar power hub
Energy Sector in Puerto Rico

Sector Dynamics and Growth

  • Robust Manufacturing Influence: With manufacturing constituting nearly half of the local economy, there’s a strong push for energy innovation, particularly in renewable fuels and Combined Heat and Power (CHP) systems, underpinned by energy federal tax credits.
  • Research and Innovation: Puerto Rico is ripe for R&D in renewable energies, supported by institutions like the University of Puerto Rico-Mayagüez’s (UPRM), Puerto Rico Energy Center, and the National Renewable Energy Laboratory (NREL), reinforcing its status as a renewable energy hub.
  • 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.
Cogeneration as a Business Tool

Download this guide to learn about how your business can benefit from cogeneration.

Key Developments

  • Infrastructure Investment: Over $77 billion in federal funding for infrastructure development post-Hurricane Maria, with a focus on renewable energy and grid modernization, leveraging the energy federal tax credit.
  • Local and International Collaborations: Strong support from local organizations and industry associations, enhancing the sector’s growth and innovation in the clean energy sector.

Research Hubs and Local Talent

+ Institutions like UPRM and NREL are at the forefront of energy research, driving innovation in renewables and energy efficiency, making Puerto Rico a leading renewable energy hub.

+Talent Pool: A skilled workforce, ready to contribute to the energy sector’s growth, with expertise in solar power and renewable energy technologies.

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

And other benefits.

Single Business Portal

Entrepreneurs and innovators that are ready to invest and transform their businesses in Puerto Rico can access the Single Business Portal (SBP). The Single Business Portal helps you navigate the ins and outs of getting your project off the ground, offering information, documents, permits, and licenses – all in a streamlined and efficient tool.

Connecting the Dots

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:

Companies already doing business in Puerto Rico

Download Sector Sheet

Ready to Invest In Energy?

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Alexis Rivera

Business Development Director
+1 (787) 635-1208