$100 million to be invested in solar park in San Germán

The project will generate 40 megawatts of energy and is expected to be ready in 2027

November 10, 2025 – 11:10 PM
By Efraín Montalbán Ríos
Business Reporter

Eric Delgado and Matthew Williams, co-founder and chief investment officer of GCI Holdings; and Miguel Román, part of the Solaner Puerto Rico management team.

The company Solaner Puerto Rico One will begin construction of a solar park in San Germán during the first quarter of 2026, supported by Sygnus Capital Puerto Rico, according to Eric Delgado, business development manager at the alternative financing firm.

The solar park will be interconnected with the power grid operated by LUMA Energy and will generate up to 51 megawatts (MW) of solar energy. Of that amount, approximately 40MW will be effectively injected into the grid, backed by battery storage systems.

“In the end, this should result in consumers beginning to see savings on their electricity bills because cheaper energy is being produced,” Delgado said.

Sygnus Capital Puerto Rico is an alternative capital access firm whose business model allows it to assume unique risks by using company assets as collateral and charging relatively higher rates.

The total estimated investment to complete the solar farm development, which will occupy approximately 207 acres of land in San Germán, is $100 million. Sygnus Capital contributed $6 million to the initiative.

The financing will support the design and engineering of the solar park, the acquisition of solar panels, batteries, and other equipment, as well as additional expenses prior to the start of construction.

“We understand all the positive impacts of this project in terms of social impact, lower energy costs, job creation, and most importantly, advancing public policy goals to move Puerto Rico toward clean energy,” Delgado said.

Puerto Rico’s energy transition goal is to achieve 100% renewable energy by 2050, under Law 17-2019, known as Puerto Rico’s Energy Public Policy Act.

According to data provided by Sygnus Capital and Solaner, the project is expected to be completed by October 2027 and will create 200 jobs during the construction phase.

The project is being developed by Solaner Puerto Rico, a company formed by XM Solar Finance and GCI Renewable Power LLC.

Meanwhile, Xan Moore, co-founder of XM Solar Finance, stated that Puerto Rico is part of the company’s vision to bring renewable energy generation to communities with limited access to reliable power and to ensure economic development in the western region of the island.

An Investment With a Multiplier Effect

Moore stated that the solar park will have a multiplier effect by helping retain and create businesses in the area, fostering manufacturing growth, and supporting surrounding communities.

“When you have a reliable energy source, it encourages local companies to remain in Puerto Rico and start businesses in the western region, which has a long-term effect. We can become a catalyst for economic development. You cannot have an economy without reliable energy service for the private sector,” Moore said.

Counterbalance to the End of Federal Loans

Although Moore said Solaner maintains a good relationship with Governor Jenniffer González and San Germán Mayor Virgilio Olivera, he acknowledged that collaboration with the Puerto Rico Electric Power Authority (PREPA) and the Fiscal Oversight and Management Board must be strengthened to create policies that encourage development and lower costs.

“Given that the federal Department of Energy loan program is no longer available to leverage these projects, the cost of developing them is higher. That is why private capital is necessary, and naturally, its costs are higher. For a company like ours, we will continue carrying out these projects, but we need PREPA and the Fiscal Oversight Board to understand that these projects are more expensive and help us achieve a financial structure that allows us to develop them without federal incentives.”

Despite the challenges of accessing capital and the high costs associated with large-scale solar energy developments, Solaner Puerto Rico projects $2 billion in future industrial solar and battery storage installations in other parts of the island, including Yabucoa.

So far this year, Sygnus has closed approximately $16 million in alternative loans for the solar energy sector. The first was disbursed last July to Pura Energía in the amount of $10 million for the installation of residential and commercial photovoltaic systems.

“These renewable energy projects are creating the space for transformation, especially within the private sector, to reduce costs and bring clean energy,” Delgado said, adding that the company is also evaluating another 60-megawatt project in Hatillo.