Puerto Rico ranks 3rd in US solar and storage growth
Puerto Rico has become one of the leading markets for residential solar energy and battery storage in the United States, according to a new study presented at the 2025 Solar Energy and Storage Association Summit.
The analysis by energy research firm Wood Mackenzie, titled “When the Grid Dies, Solar and Storage Thrive: How a Crumbling Grid Gave Rise to a Solar Superpower in Puerto Rico,” ranks the island third among the largest residential solar markets, behind California and Florida.
Since early 2022, Puerto Rico has installed more than 1.3 gigawatts of residential storage, representing 24% of all such installations in the United States during that period. The report attributes this rapid growth to the island’s fragile electrical grid, which has turned necessity into innovation.
“Puerto Rico is a model of energy resilience. What began as a necessity has become a model of self-sufficiency that is setting the standard for the rest of the United States,” said Max Issokson, senior research analyst at Wood Mackenzie.
Javier Rúa Jovet, public policy director at SESA, said the island’s solar sector is “a strong, growing and constantly innovating industry, with the protection and well-being of our people as its guiding principle.”
The study projects that Puerto Rico’s residential solar market will reach a 55% penetration rate by 2030, supported by net metering policies, high electricity costs and sustained demand for resilient power systems.
Wood Mackenzie identified expansion opportunities in commercial and community solar projects, which remain limited locally but could generate strong returns given Puerto Rico’s high energy prices.
The report warns, however, that federal restrictions, financing pressures and supply chain challenges could slow growth, though long-term prospects remain strong as the island advances toward energy independence.
Governor outlines energy reform, defends net metering
Gov. Jenniffer González said her administration remains focused on developing a resilient and affordable energy system.
“Our goal is to create an electricity system that truly serves the people of Puerto Rico, including a diversified portfolio of natural gas, renewable energy and battery storage,” she said. “Each of these options plays a different but significant role in strengthening our grid and protecting consumers.”
The governor reiterated her opposition to increases in electricity rates and pledged to defend the island’s net metering system, which allows consumers to generate their own energy and receive credits for excess production.
“My position has been constant since I was in Washington and now in Fortaleza,” she said. “I categorically oppose LUMA’s unfair and unjustified attempt to impose a $300 interconnection fee on net metering customers. This is the operator’s responsibility, and we will not pay additional charges to subsidize a company that has not provided reliable service or demonstrated the competence Puerto Rico deserves.”
Her administration has taken several steps to modernize the grid, including Executive Order 2025-047, which extends the island’s energy emergency declaration to accelerate renewable and storage project approvals. The order establishes a 30-day expedited review for power purchase agreements qualifying for federal Investment Tax Credits, aligning Puerto Rico’s renewable priorities with U.S. energy policy.
In February, González announced the installation of 430 megawatts of Tesla Megapack batteries at six generation plants — the largest battery storage project in the United States — funded with $758 million in federal allocations secured during her tenure as resident commissioner.
The first phase began at the Cambalache facility in Arecibo, with operations expected to start in late 2026. Each unit will store and dispatch energy for up to four hours, which officials say could reduce outages by as much as 90% and save about $100 million a year in production costs.
“Our energy transformation is driven by action, partnerships and leadership across all sectors,” González said. “From the Tesla Megapack project to the acceleration of renewable approvals, we are working hand in hand with organizations like SESA to achieve real progress for our people with a new grid operator.”
The SESA Summit, now in its ninth year, gathered industry leaders, innovators and public officials to discuss Puerto Rico’s evolving energy landscape.
The event highlighted the island’s rise as what the study calls a “solar superpower,” driven by necessity, collaboration and policy alignment rather than incentives alone.
Rúa Jovet said the industry’s trajectory reflects “a clear path toward greater solar and storage penetration and a transition to renewable energy sources.”
He said the sector’s strength lies in its ability to balance innovation and resilience, making Puerto Rico a testing ground for the future of decentralized energy across the United States.
The Wood Mackenzie study concludes that Puerto Rico’s model — in which nearly all solar systems are paired with batteries — has redefined solar energy as critical infrastructure rather than an optional alternative.
With continued cooperation between government and industry, the report says, the island’s experience offers insight into the next phase of the U.S. energy market, where resilience, technology and community participation converge to drive sustainable growth.
