Energy

Transformation Is Creating Opportunity

Puerto Rico’s energy transformation is creating opportunity by providing expertise, technology, and critical services to the local market.

100%

Island’s goal to source all electricity from renewable sources by the year 2050

$10.5B

in federal funds have been designated for energy grid enhancements

100%

exemption from excise and sales tax on Green or High Efficiency Energy products

CONNECT WITH BUSINESS DEVELOPMENT

Energy Infrastructure in Complete Reconstruction

The federal government has allocated over $77 billion for infrastructure reconstruction after the passing of Hurricane María over Puerto Rico in 2017. The investment is designated for infrastructure repairs, especially projects related to energy, telecommunications, and transportation.
These funds, a combination of FEMA, HUD/CDBG-DR, CARES Act, and American Rescue Plan Act, have supported hundreds of projects to renovate, improve, and strengthen Puerto Rico’s energy grid.
Federal funds also ensure access to clean energy options, improving resiliency, carbon footprint reduction, and increased self-sufficiency for residences and commercial enterprises.

Local Development Energy

Puerto Rico is embracing the renewable energy revolution. The Puerto Rico Energy Policy Act of 2019 (Act 17) requires Puerto Rico to source 40% of its electricity from renewable sources by 2025, 60% by 2040, and 100% by 2050. Additionally, the law opened the local marketplace to energy producers and servicers.
As energy activities decentralize, the Puerto Rico Energy Bureau is working to ensure a regulatory landscape that provides the flexibility to produce, sell, distribute, and monitor energy use across all sectors and sizes of users or developers.
In June 2021, LUMA Energy assumed the operation and maintenance of power transmission and distribution across the island. They are currently training linemen and undergoing a comprehensive grid study to enable more integration of renewables and distributed energy resources.
In July 2023, Genera PR, an energy infrastructure company created by New Fortress Energy Inc., supports Puerto Rico’s transition to reliable, affordable, and cleaner energy by operating and maintaining power plants and related infrastructure. It enhances energy security, enables economic growth, improves environmental stewardship, and benefits local communities.
Manufacturing operations with heavy energy needs make up almost 50% of the local economy. As such, the private sector is making great strides in energy innovation. For example, Combined Heat and Power (CHP) and renewable fuels are taking center stage for industrial users.

Competitive Landscape for Growth

+ Puerto Rico has the talent you need to be successful. 60% of college graduates hold a STEM degree, so there is an abundance of talent ranging from software developers to civil & industrial engineers to support you.

+ Industry associations, like the Renewable Energy Contractors Association (ACONER in Spanish) and the Solar Energy and Storage Association (SESA), can help you connect with developers, technology partners, and project opportunities. There are also growing tech and entrepreneurship communities to help startups & multinationals establish successful operations in Puerto Rico.

+ Incentives support wide ranging energy-related activities:

Green energy production
Manufacturing and assembly of energy equipment
Development of energy-related software
Export of energy-related services from Puerto Rico to the world

Tax Incentives

Puerto Rico offers a unique package of smart tax incentives designed to help your operation grow, innovate, take risks, and hire talent.

4% fixed income tax rate on eligible income
100% tax exemption on capital gains and distribution of dividends
75% exemption on property tax
75% exemption on municipal construction rate
50% exemption on municipal license tax
100% exemption from State Excise and Sales & Use Taxes on certified green energy equipment
15-year standard tax exemption grant period, eligible for 15-year renewal
Up to 50% tax credit on R&D expenditures

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.

Access here