# Renewable Energy

> Panama generates over 75% of its electricity from renewable sources. The country offers income tax credits up to 50% for clean energy projects, import duty exemptions, and will launch 4 renewable energy auctions starting 2026 with 20-year PPAs.

[Canonical page](https://investpanama.biz/en/invest/renewable-energy)

Panama has surpassed 75% of installed electricity capacity from renewable sources, positioning itself as a regional leader in clean energy. Law 417 of 2023 expanded solar incentives, offering import exemptions, tax credits up to 50%, and the National Energy Plan 2025-2050 will launch 500MW+ auctions in 2026 with 20-year PPA contracts.

## Key figures

- **79%** — Renewable Electricity _(Source: World Bank (2021))_
- **50%** — Solar Tax Credit >10MW _(Source: Ley 417 de 2023)_
- **25%** — Tax Credit ≤10MW _(Source: Ley 417 de 2023)_
- **500MW+** — Planned Auctions 2026 _(Source: Secretaría Nacional de Energía 2025)_
- **20 años** — PPA Duration _(Source: Plan Nacional de Energía 2025-2050)_

## Opportunities

- **Solar Photovoltaic Energy** — Solar projects with equipment import exemption, 5% direct tax credit, and up to 50% for projects over 10MW.
- **Wind Farms** — Law 44 of 2011 establishes specific incentives for wind farms connected to the National Dispatch Center.
- **Energy Storage** — 2026 auctions will include battery storage as a key component of the energy transition.
- **Hydroelectric** — Panama has multiple operational hydroelectric projects and expansion potential in strategic basins.

## Resources

- [UNCTAD - Solar Incentives Law 417](https://investmentpolicy.unctad.org/investment-policy-monitor/measures/4626/panama-adopted-new-incentives-for-solar-energy-investment)
- [National Energy Secretariat](https://www.energia.gob.pa/)
- [ASEP - Public Services Authority](https://www.asep.gob.pa/)