Puerto Rico credit unions to receive $147M for renewable energy financing
The funding aims to expand affordable loans and drive economic growth.
Thirty-eight state and federal cooperatives in Puerto Rico will receive $147 million in grants under the Clean Communities Investment Accelerator Program of the Greenhouse Gas Reduction Fund, administered by Inclusiv, a nonprofit that supports credit unions in providing affordable financial services and loans to underserved communities.
The program aims to triple investment in green loans, enabling cooperatives and credit unions to provide affordable financing for renewable energy and energy efficiency projects.
“The 38 Puerto Rican cooperatives selected are part of a first group of 108 financial institutions in 27 states and Puerto Rico that will receive grants in this first round of allocations,” said Inclusiv CEO and President Cathie Mahon. “This group of cooperatives serves more than 4.9 million people and will deploy the funds in communities affected by the high cost of energy, projecting to generate $2 billion in new lending activity.”
René Vargas-Martínez, vice president for Puerto Rico and the U.S. Virgin Islands at Inclusiv, emphasized the impact of this funding on the island’s economy.
“For every dollar of capitalization received, the cooperatives commit to granting three dollars in low-cost loans with flexible terms for small businesses and consumers, projecting to generate over $400 million in borrowing activity,” he said. “These [loans] will cover the installation of solar panels, weatherization, refrigeration, energy-efficient appliances and other products that will reduce energy costs for families and small businesses. In addition, these investments will promote the creation of jobs in key sectors such as construction, infrastructure development and the distribution of sustainable technology, generating a positive impact on the local economy.”
The grants will help cooperatives develop financial products that encourage solar energy adoption, battery storage and energy efficiency improvements. This investment is expected to reduce reliance on traditional energy sources while fostering Puerto Rico’s long-term economic and environmental sustainability.
“Access to sustainable financing will allow cooperatives to offer affordable solutions to reduce energy costs and improve air quality in low-income communities,” Mahon said. “In addition, this investment will strengthen the capacity to provide affordable loans for renewable energy projects, facilitating the transition to sustainable solutions and easing the financial burden on thousands of families and businesses.”
Mabel Jiménez-Miranda, executive president of the Puerto Rico Cooperatives Supervision & Insurance Corp. (Cossec, in Spanish), said the grants highlight the strength of the cooperative sector in mobilizing capital for economic development.
“Over the past few years, we have worked alongside Inclusiv to highlight the economic and social impact of credit unions, both in Puerto Rico and internationally,” she said. “Today we celebrate this important achievement, which reaffirms the power and potential of cooperativism as a driver of public and private investment. At Cossec, we will continue to promote the growth of the cooperative system through effective supervision.”
Dahlia Torres-Valentín, executive director of the Cooperative Executives Association (ASEC, in Spanish), underscored the commitment of credit unions to community well-being.
“Cooperativism exists to meet the needs of the people, and today more than ever, our members and the planet require changes, tools, products and services that offer energy efficiency alternatives, promoting sustainable economic development,” she said.
