Puerto Rico’s use of residential solar panels ranks third in US

Data from the second quarter of 2025 indicates that Puerto Rico ranks third among the largest residential solar markets in the U.S., following California and Florida. (Erika P. Rodríguez/The New York Times)

By THE STAR STAFF

During the ninth annual Solar and Energy Storage Association of Puerto Rico (SESA) Summit in San Juan on Tuesday, energy research and analysis firm Wood Mackenzie presented the findings of its latest study, showing Puerto Rico ranks third in the use of residential solar panels in the United States.

The study, titled “When the Grid Dies, Solar and Storage Thrive: How a Crumbling Grid Gave Rise to a Solar Superpower in Puerto Rico,” positions Puerto Rico as one of the most advanced residential solar and storage markets in the United States.

As of the first quarter of 2022, Puerto Rico had installed more than 1.3 gigawatts of residential storage, accounting for 24% of all residential storage installations in the United States during that period. Furthermore, data from the second quarter of 2025 indicates that Puerto Rico ranks third among the largest residential solar markets in the U.S., following California and Florida.

“Puerto Rico is a model of energy resilience,” said Max Issokson, senior research analyst at Wood Mackenzie, during the presentation at the event. “What began as a necessity due to a fragile electrical system has evolved into a model of innovation and self-sufficiency that sets the standard for the rest of the United States.”

The study illustrates that Puerto Rico’s residential solar and storage market has achieved notable success in the U.S. solar landscape, driven by resilience rather than government incentives. It emphasizes that the rapid growth of residential solar and storage in Puerto Rico is a direct response to the island’s fragile electrical grid, differentiating it from the rest of the U.S., where most installed solar systems are integrated with batteries to ensure an uninterrupted power supply. This has redefined solar energy as essential infrastructure.

“The solar industry in Puerto Rico is strong, growing, and continually innovating, with the protection and well-being of our people as its guiding principle,” said SESA Director of Public Policy Javier Rúa Jovet. “The results of this study indicate that we are moving in the right direction toward greater adoption of solar energy and storage on the island and toward our goals of transitioning to renewable energy sources.”

According to Wood Mackenzie, Puerto Rico’s experience provides insight into the future of the U.S. solar market, showcasing universal battery adoption, the expansion of financing through third-party ownership (TPO) models, and advancements in virtual power plants.

The study predicts that the residential solar market in Puerto Rico will continue to grow in 2026 and 2027, with an estimated penetration of 55% by 2030. This growth will be supported by the ongoing eligibility of TPO-financed projects for tax credits, a favorable net metering policy, high electricity rates, and increasing demand for resilience. However, it also mentions potential challenges such as federal restrictions, stricter financing requirements, and supply chain pressures that could impact growth.

Additionally, the analysis identifies opportunities for expansion in the commercial and community segments, which have yet to be developed locally. Those segments offer attractive profitability due to the high cost of electricity and significant diversification opportunities.