The Caribbean island has launched an ambitious package of tax measures to try to stem the energy crisis it has been experiencing for months. Resolutions 179 and 180, published in the Official Gazette, came into effect this weekend with the clear objective of easing the financial burden on those who invest in renewable energy , including individuals, private companies, and state-owned enterprises.
The situation couldn't be more dire. Blackouts have become a daily occurrence, affecting more than 60% of the population during peak hours. Faced with this critical situation, the Cuban government has decided to go all out with incentives ranging from complete tariff exemptions to tax breaks , aiming to enable every citizen and business to generate their own electricity.
Tariff exemptions and included equipment
Resolution 180/2026, which repeals the previous Resolution 41, exempts importers of photovoltaic solar systems and their components from customs duties. The list is extensive, encompassing up to 60 tariff subheadings , ranging from solar panels and photovoltaic cells to screws, nuts, washers, copper bars, and transformers. Solar water heaters, photovoltaic pumps, small wind turbines, geomembrane biodigesters, biogas pumps, solar lighting, and solar air conditioning systems also benefit.
Electric vehicle chargers powered by renewable energy and biomass processing equipment are also included in the measure. The exemption will be in effect until December 31, 2027, and applies to both finished equipment and raw materials used in its manufacture, as listed in Annex II. The regulation is not limited to finished equipment but also covers basic components such as fittings and fasteners, provided they are linked to the systems described.
Incentives for social responsibility and self-consumption
Beyond imports, the new regulations introduce deductions in the Corporate Income Tax and Personal Income Tax for those who invest in renewable energy in public service centers. The Vice Minister of Finance and Prices, Yenisley Ortiz, explained that this includes polyclinics, maternity homes, doctor's offices, family care centers, multi-family buildings, homes for people dependent on electricity for medical reasons, and water pumping systems.
Furthermore, the sale of these technologies is exempt from sales tax for one year, provided they are accounted for separately from other products. To prevent price gouging, the profit margin is capped at 25% of operating costs . This measure aims to ensure affordable prices and that the benefits truly reach the end consumer.
Expansion of energy trading
Resolution 179/2026 modifies the previous regulations (Resolution 114 of May) and expands the scope of energy sales to the National Electric System (SEN) . Until now, only photovoltaic solar energy received preferential treatment. With the new text, energy generated from plant biomass and wind power can also be sold to the grid at regulated rates and with tax benefits.
This change is key to diversifying energy generation sources and attracting private investment, both from micro, small, and medium-sized enterprises (MSMEs) and the self-employed. The idea is that any economic actor can become an energy producer and feed their surplus into the grid, helping to alleviate the country's structural energy deficit.
Context of the energy crisis
The measures come at a critical time. The state-owned electric utility, Unión Eléctrica, anticipates that the day's largest blackout will leave 69% of the country without power during peak hours . Available capacity stands at 1.050 megawatts, compared to an estimated peak demand of 3.300 megawatts, forcing the disconnection of 2.280 megawatts to prevent disorderly outages.
The 9,4 million Cubans have, on average, only two or three hours of electricity service per day. So far in 2026, the island has suffered seven nationwide blackouts, and in almost 24 months, it has accumulated twelve total outages. July ended as the worst month on record, with deficits exceeding 2.000 MW for almost the entire month. The official goal is for renewables to represent 24% of electricity generation by 2030 , although experts point out that the current infrastructure is severely deteriorated.
The Cuban government has put forward a range of tax incentives to try to reverse the energy crisis, relying on the participation of all economic actors. However, the magnitude of the deficit and the state of the thermal power plants, most of which were built between the 60s and 70s, pose a major challenge. Tariff exemptions and the ease of selling energy to the grid are a step forward, but the reality on the ground continues to be marked by massive blackouts and fuel shortages , forcing citizens to seek individual solutions such as solar panels and batteries to become independent of the grid.
