The government exempts private investors from taxes for up to eight years for investing in renewable energy in Cuba

The Cuban government approved a tax exemption of up to eight years for individuals and legal entities that invest in renewable energy systems, as established by the Resolution 41/2026 of the Ministry of Finance and Prices, published this Thursday in the Official Gazette.

The regulation stipulates that taxpayers who invest in generation technologies using renewable sources may be exempt from the Personal Income Tax or the Profit Tax for the period necessary to recover the investment, with a maximum limit of eight years.

The benefit is not automatic or universal; rather, it is granted in accordance with the invested amount and the approved recovery time.

To access the exemption, it will be mandatory to have an energy report issued by the competent authority certifying the operation of the installed system and to submit the application to the National Office of Tax Administration.

The tax administration may revoke the benefit if it detects non-compliance with the established requirements.

The resolution also expands the exemptions from Customs Duties for the importation of photovoltaic solar systems, wind generators, biodigesters, photovoltaic pumps, and other equipment intended for electricity generation from renewable sources, including their parts, pieces, and components.

In the case of individuals, these goods will not count towards the limit set for non-commercial imports, provided they are presented separately to Customs and are included in the list approved by the regulations, and must comply with the existing formalities and technical controls.

The regulation also stipulates that technologies related to renewable energy must be marketed at non-revenue prices, based on costs and expenses with a limited profit margin.

However, electric vehicles, as well as their parts and components, are expressly excluded from this pricing scheme.

Similarly, the resolution not only encourages self-consumption but also provides for those who install generation systems using renewable sources to supply energy to the National Electroenergetic System, which paves the way for grid connection schemes, a topic that the regime had already reported on before.

The measure comes amid an energy crisis characterized by prolonged blackouts and fuel shortages, in a context where the government seeks to encourage decentralized investments that contribute to electricity generation and reduce pressure on the National Electro-Energetic System.