Caribbean Solar Energy Growth Has Accelerated
A new report reveals that the region is rapidly scaling solar power to combat a heavy reliance on imported fossil fuels.
Updated on Oct. 1, 2026 in Energy
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The research organization Ember reported that 2,280 megawatts of solar capacity have been installed across thirteen Caribbean nations between 2021 and 2024. While fossil fuels still generate over 90% of electricity in the region, renewable energy adoption is growing as countries seek to reduce their vulnerability to expensive fuel imports.
Why it matters
High dependence on imported fuel has driven the average regional electricity cost to 25 cents per kilowatt-hour, significantly higher than the 10 cents per kilowatt-hour seen in other emerging economies. Reducing this reliance could help mitigate the inflationary pressures that have historically followed global oil price shocks.
Solar capacity was determined through an analysis of imports from China, revealing a gap between the 2,280 MW estimated and the 1,269 MW officially registered. The region currently generates 9% of its electricity from renewable sources.
The players
Ember
This independent energy think tank conducts data-driven research to accelerate the global transition to clean energy.
Dominican Republic
This Caribbean nation is a significant consumer of imported fossil fuels and a focal point for recent regional renewable energy contract developments.
Jamaica
As one of the nations analyzed, this country allocates a substantial portion of its annual GDP toward the importation of fossil fuels.
The details
In eleven of the thirteen countries analyzed, all electricity is generated from imported fuels, with nations like Jamaica and the Dominican Republic spending up to 9.5% and 4.4% of their GDP on these imports respectively. Renewable energy projects are now frequently contracted at lower prices than traditional fossil-fuel power, offering a pathway toward lower household energy bills.
Timeline
2008 and 2022 saw oil shocks that triggered significant inflation.
Between 2021 and 2024, 2,280 MW of solar panels were installed in the region.
In 2024, renewable energy provided 9% of regional electricity generation.
June 2026 marked the awarding of renewable contracts with battery storage in the Dominican Republic.
By 2030, the renewable share of electricity could reach 23%.
The Big Picture
The regional transition toward renewables follows a pattern set by the 2008 and 2022 global oil price shocks. This shift marks a departure from the historical dependence on imported fuels that has historically left Caribbean economies vulnerable to external market volatility.
The adoption of lower-cost renewable energy projects could stabilize electricity bills for residents currently paying significantly above global averages. As countries hit their 2030 renewable targets, consumers may see a reduction in the inflation-linked cost of living fluctuations tied to global oil prices.
The takeaway
Caribbean nations are leveraging solar energy to detach their local economies from the volatility of international fuel markets. Implementing these renewable targets could potentially reduce fossil fuel-based generation by 9% by the end of the decade.
Further reading
Learn more about the global transition to sustainable power on our Energy page.
Source note: This article includes information reported by Ember.
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