jrobinson, Author at SolarBuzz Jamaica

Jamaicans to benefit from income tax credit for solar systems

August 2, 2024 jrobinson

Senator Dr Dana Morris Dixon. — Senator Dr Dana Morris Dixon

Members of the Upper House yesterday passed the Income Tax Amendment Act without changes.

The bill provides for an income tax credit at the rate of 30 per cent of the acquisition and installation cost of a solar photovoltaic system for the taxpayer’s primary residence to a maximum cost of $4 million.

Minister Without Portfolio in the Office of the Prime Minister with responsibility for Skills, Digital Transformation and Information, Dr Dana Morris Dixon, who piloted the bill, said the maximum credit an individual will be allowed to claim is $1.2 million.

Senator Morris Dixon said the legislation formalises an important component of the government’s green policy.

This measure forms part of a larger goal to reduce the country’s dependence on fossil fuels, said Morris Dixon, adding that the move would substantially increase the share of renewable energy locally.

According to the Cabinet minister, the adoption of photovoltaic systems at the residential levels would lead to substantial savings on electricity bills for Jamaicans.

Leader of Opposition business in the Senate, Peter Bunting, said the legislation would create a material incentive particularly to middle and upper income taxpayers.

He argued that the tax credit would mean nothing to Jamaicans who are currently at or below the income tax threshold.

One of the requirements to benefit from the tax credit is that the taxpayer’s principal place of residence should not be used as a commercial space. Bunting noted that this would disqualify many persons who were operating their micro businesses from home.

JPS ‘FAILED THE TEST’

Meanwhile, Bunting used the opportunity to chide the Jamaica Public Service (JPS) for its lethargic approach in restoring electricity to customers in Manchester South.

He said JPS has “failed the test” in how it is carrying out restoration of power, particularly in Manchester South, but also in St Elizabeth.

The Opposition lawmaker, who is the People’s National Party caretaker for Manchester South, bemoaned the hardships being faced by the majority of residents who have been without power since July 3 when Hurricane Beryl devastated sections of Jamaica’s south coast.

“The entire Grove Town division has no electricity. Just perhaps 40 per cent of Alligator Pond, Newport and Porus have electricity,” he said.

Bunting also complained that the Cross Keys and Asia police stations that serve more than 80 per cent of the constituency have been without electricity.

“These have had no power and therefore they have no radio, they have no communication at all for the last three and a half weeks,” he said.

He said crime has increased in South Manchester, with numerous robberies, break-ins and murders recorded over the period.

“Criminals are able to move now with relative abandon so the implications are many. These are implications for security and commerce, with the police urging businesses to close early as they cannot guarantee them service after dark,” Bunting noted.

Gleaner

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Solar Buzz ready for residential growth with new NHT solar loan programme

July 17, 2024 jrobinson

Today Solar Buzz has grown its business to a team of eight and operates from The Trade Centre on Red Hills Road in Kingston. As part of the company’s growth plans, Robinson is eyeing a second location for Solar Buzz outside of Kingston. (Photo: Joseph Wellington)

After 13 years of carving out a niche in the renewable energy market, Solar Buzz is ready to deepen its business with residential customers as the new solar energy loan financing programme by the National Housing Trust (NHT) takes effect.

The family-owned business, which was conceptualised with a vision of raising the standard of solar installations in Jamaica, today earns the majority of its revenues from residential battery storage installations. Still, it’s a space that CEO Jason Robinson sees as having much scope for growth.

“We are in a hurricane zone obviously, and Beryl shows us that every home needs some sort of solar system, even if it’s something small. Commercial was our first go because that’s where the financing was and it’s still easier to get financing on commercial products; but getting a net billing licence is a lot more onerous than it should be and so some of the commercial customers get frustrated and may back out of the project.

“Residential is an opportunity we see because the market is not saturated and then there is a big push for electric vehicles and if you have an EV, having your own solar system goes hand in hand,” Robinson told the Jamaica Observer.

Solar Buzz is now banking on new business from the NHT’s smart energy home improvement loan, which took effect on July 1. Under the loan arrangement, individuals who received an NHT loan at least 10 years ago can access $1.5 million each, or $3 million jointly, to purchase solar panels and batteries, solar water heaters, solar insulation, other renewable energy technology such as windmills, hydropower and biomass; rainwater harvesting and storage systems to include water tanks and pumps.

The loans are being disbursed at an interest rate of 5 per cent with a payback period of up to 10 years. The new loan programme comes at a time when lithium-ion battery prices are also trending down.

“It’s a game changer for a couple of reasons: NHT financing is our main source of residential financing now just because the interest rates for the regular banks are so high because of what’s happening in the market now.

“People are working from home and they realise that even with a blip from JPS, they lose connection with their
Zoom meeting or school-from-home meeting, etc. We have been trying to work with the NHT for years and so them coming on stream with this loan product is really expected to drive growth in this industry,” Robinson Business Observer.

Currently, roughly 75 per cent of Solar Buzz’s business comes from residential lithium-ion battery storage systems.

Founded in June 2011 by brothers Jason and Justin, along with their father Gordon, Solar Buzz has grown from humble beginnings to become a key player in the Caribbean’s solar energy landscape.

The inspiration for Solar Buzz began during Robinson’s early years in California, where he witnessed the State’s progressive stance on renewable energy and recycling from 2002 to 2010. During this period, Robinson said he engaged in various environmental groups, took relevant classes, and interned at different businesses, solidifying his passion for the field.

The inspiration for Solar Buzz began during Robinson’s early years in California, where he witnessed the state’s progressive stance on renewable energy and recycling from 2002 to 2010. During this period, Robinson engaged in various environmental groups, took relevant classes, and interned at different businesses, solidifying his passion for the field.

“I got involved in everything solar business because I knew then that it was a field that I wanted to be involved in one day. Then in 2008, when the energy crisis hit and oil prices skyrocketed to over US$100 per barrel people started going out of business.

“Because my family is here, I was focused on what was happening in Jamaica, and I saw that as the opportune time for me to try to work in the industry, so I moved down in 2010, worked with a company, kinda learned how they did business, but I didn’t like the approach and thought I could do a better job,” Robinson recalled.

The early years were challenging. Securing financing for solar installations was difficult, pushing Solar Buzz to focus on energy efficiency and educating clients on optimising their solar systems.

However, a significant turning point for Solar Buzz came in 2014 when the Development Bank of Jamaica (DBJ) launched a solar financing programme. That initiative allowed clients to use their solar systems as collateral, unlocking access to solar financing for the first time.

Robinson credits Edison Galbraith, general manager for channels, relationships and marketing and his team at DBJ, for this groundbreaking development, which catalysed the growth of the residential and small commercial solar industry in Jamaica.

“It was huge. I credit Edison Galbraith and his team,” Robinson said, adding that the company’s client base currently includes Island Smiles, Gray’s Peppers, Chas E Ransom’s Group, Caribbean Foods, and The University of the West Indies.

Today Solar Buzz has grown its business to a team of eight and operates from The Trade Centre on Red Hills Road in Kingston. Its product and services have also expanded to include solar energy systems that offer up to 90 per cent savings on electricity bills for commercial and residential use; glass tinting for commercial, residential, and auto/fleet applications to provide instant reduction of glare, heat, and UV exposure; solar water heaters; solar pool pumps; solar inflatable lantern that inflate to 8 inches and provides 15 square feet of light and up to 12 hours of illumination, along with solar hybrid flashlights.

Exploring partnerships

As the company works to expand its presence in the residential market, Robinson stated that Solar Buzz is exploring strategic partnerships with developers and companies selling electric vehicles such as ATL Auto. The CEO is also looking to deepen its relationship with the bank and insurance firms.

“So far, our partners and clients have trusted us to install systems that are protected against up to category four hurricanes and we want to keep that relationship going. We have never considered ourselves to be the cheapest but our clients come to us because they know they are getting quality products and so we want to build on those relationships,” he said.

Robinson is also taking a serious look at financing options to prepare for growth opportunities. While the company is open to both private and public partnerships, Robinson currently leans towards private collaborations.

“We have really built the company out of self-funding and we are getting to the point where we need to look at how do we scale the business. Everything is on the table right now, we are looking at how best to scale, who to partner with and the opportunities that are there, what developers to work with and I think that is going to be a big focus for us going forward,”

“As it relates to going to public, its something that we would look at further down the line, I don’t think we are there yet to want to go public because that comes with a lot of responsibilities,” he said.

As part of the growth plans, Robinson is also eyeing a second location for Solar Buzz outside of Kingston.

ROBINSON…we are in a hurricane zone obviously, and Beryl shows us that every home needs some sort of solar system, even if it’s something small

Solar Buzz is banking on new business from the NHT’s smart energy home improvement loan which took effect on July 1. Roughly 75 per cent of company revenues currently comes from residential solar installations; however, Robinson see more scope for growth in that segment of the market.

Solar Buzz deals in lithum battery storage systems; grid-tie solar systems; glass tinting for commercial, residential, and auto/fleet applications; solar water heaters; solar pool pumps; solar inflatable lantern and solar hybrid flashlights.

Jamaica Observer

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Time to rethink our energy infrastructure

July 17, 2024 jrobinson

Cost has always been cited as the restrictive factor when considering alternative forms of energy, but Hurricane Beryl, and all she brought, should have more Jamaicans keen on embracing these.

No bigger sales pitch is needed than those Jamaicans who have experienced countless days and nights without electricity since the hurricane’s passing on July 3, and the subsequent struggles to stay powered.

Smart energy has been pushed by friends of the environment for aeons, and Jamaica has been slowly recognising its merit.

In March, Prime Minister Andrew Holness announced that National Housing Trust contributors would be able to access a new loan product for smart home energy solutions — for solar panels and batteries; solar water heaters; solar insulation; and other renewable energy technology such as windmills, hydropower and biomass.

It’s a good start for an island that has really been slow to embrace the alternative energy sources freely available year round in the form of solar, wind and hydro energy.

In the wake of Beryl, which left thousands without power, the urgency of rethinking our energy strategy has never been more apparent. This natural disaster underscored the vulnerability of the island’s energy infrastructure, and the pressing need for a more resilient and sustainable solution.

Embracing alternative energy is not just an environmentally friendly choice, but a strategic move towards energy security and economic stability.

One of the most compelling merits of solar energy, for example, is its reliability and resilience. Unlike traditional power grids, which can be severely disrupted by storms, solar panels can continue to generate electricity as long as there is sunlight. Even during a hurricane, when cloud cover might reduce efficiency, solar systems equipped with battery storage can ensure that essential services remain powered. This resilience is invaluable in countries prone to natural disasters.

By harnessing this natural resource, Jamaica can significantly reduce its dependence on imported fossil fuels and channel these resources to other critical areas.

Indeed, though pricey, the initial costs of solar installations are rapidly decreasing, and the long-term savings from reduced energy bills and maintenance costs make solar a financially prudent choice.

We understand that to fully realise the potential of alternative energy, supportive policies and investments are essential, and these have to go beyond the energy loans now offered. Government can play a pivotal role by cutting the bureaucracy around acquiring these loans, offering more incentives for installations, streamlining regulatory processes, and investing in research and development to improve alternative energy technologies.

Embracing alternative energy in Jamaica is not just an option now; it is a necessity. Beryl has highlighted the vulnerabilities of the current system, and it is imperative that we build a more resilient, sustainable, and economically viable energy infrastructure.

By investing in alternative energy power systems, Jamaica can turn the challenge of frequent natural disasters into an opportunity for transformative progress.

Jamaica Observer

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Income Tax Credit for Persons Who Acquire and Install Solar Photovoltaic System

July 12, 2024 jrobinson

Income Tax Credit for Persons Who Acquire and Install Solar Photovoltaic System

The House of Representatives, on Tuesday (July 9), passed the Income Tax (Amendment) Act, 2024, which seeks to implement a regime to provide income tax credit to individuals who acquire and instal a solar photovoltaic system at their primary place of residence.

Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, had informed of the initiative during his 2023/24 Budget presentation.

“This Bill seeks to achieve this by setting out the appropriate legal framework that would allow individuals to benefit from this income tax credit.

This measure forms part of a much broader goal of reducing our dependence on fossil fuels and substantially increase the share of renewable energy in our local energy mix,” Dr. Clarke told the House.

The Minister said Jamaica has set a target to achieve a 50 per cent use of renewable energy in the electricity generation sector by 2030, and that the utilisation of appropriately targeted fiscal measures is critical to achieving this result.

“You will also recall that in my budget presentation earlier this year, as a part of the 2024/25 Budget, I indicated that the Government will also be reducing the corporate income tax rate for independent power producers producing 75 per cent or more of their energy from renewable sources, from 33 1/3 per cent to 25 per cent,” Dr. Clarke said.

“The objective of this rate reduction is to promote growth within the renewable energy sector but providing a more favourable tax environment and providing more of an incentive for larger-scale investment in renewable energy technologies, such as wind and solar,” he added.

The Minister said that the major components utilised in the installation of a solar photovoltaic system, such as the solar photovoltaic panels, solar inverters and solar batteries, including lithium-ion batteries, are also exempt from the payment of General Consumption Tax (GCT).

“These fiscal measures are proof of the Government’s commitment to achieve the target of 50 per cent use of renewables by 2030. The Government will continue to explore measures, fiscal and otherwise, to ensure that this target is met. The Bill before us sets out the criteria that will enable individuals who have installed a solar photovoltaic system at their primary residence to benefit from the income tax credit,” Dr. Clarke said.

In addition, the Bill makes provisions for, among other things, an income tax credit at the rate of 30 per cent of the acquisition and installation cost of the solar photovoltaic system for the taxpayer primary residence, up to a maximum cost of $4 million.

“This means that the maximum credit an individual will be allowed to claim is $1.2 million. This measure shall apply to solar photovoltaic systems acquired and installed on or after January 1, 2023 [that is] for the year of assessment 2023. The value of the income tax credit will be applied to the acquisition installation price of the solar photovoltaic system and will be claimable in the year the system is installed,” he stated.

“The income tax credit will be used by the taxpayer to offset their total income tax liability equal to the total value of the credit received. The credit would be non-refundable, i.e, the total value of the credit exceeds the total taxpayer’s liability; the taxpayer would not receive a cash refund. A carry-forward provision is included to allow the individual to apply the unused portion of the credit to future tax years,” he added.

Dr. Clarke said the amount of credit applied would be restricted to a maximum of 50 per cent of income tax payable by the taxpayer in the assessed year, with the remaining amount being carried forward and applied to the future tax year.

In order to claim the credit, the taxpayer will have to provide proof such as invoices and independent verification that the solar photovoltaic system is installed and is generating electricity.

“The Bill [also] seeks to amend the income tax prescribed form order 2015, to prescribe new taxpayer return forms to facilitate the tax credit in the relevant forms,” Dr. Clarke said.

JIS

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Robinson bats for policy to make new builds solar-ready

July 12, 2024 jrobinson

ROBINSON…we have seen…on the commercial side where you go on the roofs of some of these prominent businesses and its just roof membrane with plyboard and zinc. No weight can go on the roofs

AS the dialogue around solar systems strengthens following the passage of Hurricane Beryl, vice-president of Jamaica Energy Renewable Association and CEO of Solar Buzz Jason Robinson is emphasising the need for government policy to ensure that new constructions are solar-ready, as Jamaica progresses in its transition to renewable energy.

“We’re seeing a shift where more architects understand the importance of integrating solar into their designs. Previously, the focus was on aesthetics for clients but now functionality is paramount,” Robinson told the Jamaica Observer.

However, he warns that without mandated policies, builders might avoid incorporating solar-friendly features, in order to cut costs.

“We have seen…on the commercial side where you go on the roofs of some of these prominent businesses and its just roof membrane with plyboard and zinc. You can’t put any solar on that — and they are massive buildings…This needs to change,” he said.

Robinson’s call for government regulations requiring new constructions to be designed with solar capabilities aligns with a target set by the Ministry of Science, Energy and Technology for Jamaica to achieve 33 per cent of electricity generation from renewables by 2030, and 50 per cent by 2037.

By next year the Government had projected to hit 320 megawatts of solar and wind generation, 120 megawatts of liquefied natural gas (LNG), and 74 megawatts of hydro waste energy and/or biomass.

On July 1 the National Housing Trust (NHT) Smart Energy Home Improvement Loan took effect, thereby creating a pathway for property owners to access $1.5 million each, or $3 million jointly, to purchase solar panels and batteries, solar water heaters, solar insulation; other renewable energy technology such as windmills, hydropower and biomass, rainwater-harvesting and storage systems to include water tanks and pumps.

The loans are being disbursed at an interest rate of five per cent with a payback period of up to 10 years.

Robinson noted that while much progress has been made to support the country’s transition to cleaner energy, he said the missing element is a solar building code to guide how developers move forward.

Checks made by the Business Observer show that internationally, safety regulations are also in place to govern the process of solar installations. For example, in Minnesota, United States, solar companies cannot place panels within three feet of the edge of roofs and must also create pathways of that same width between arrays, to provide access for firefighters and emergency personnel. Such guidance may be necessary for new apartment complexes.

“Going forward we hope that there will be policies to say, ‘Build with solar in mind’. The Government is reducing the duties on electric vehicles but they’re not forcing developers of apartment complexes to build with the ability to install an EV charger for the meter at your parking spots,” Robinson said.

“We get calls all the time from people that live in an apartment complex and we have to tell them it can’t be done, it has to go somewhere else. It’s very inconvenient because the young professionals are the ones buying these apartments and want these electric vehicles,” he continued.

Robinson acknowledges that policy changes cannot happen overnight without disrupting industries and livelihoods, but stresses the urgency of collaborative efforts. “We need a holistic approach. Reducing duties on EVs is a step in the right direction but we also need the infrastructure to support these vehicles. Why is this progress being slowed down?”

Designing roofs with solar in mind

For optimal solar installations Robinson recommends southward-facing roofs and metal-standing seam roofs which allow for easy installation without roof penetration, thereby preventing leaks. He also suggests slab or concrete roofs for commercial customers as they offer flexibility in panel orientation.

Robinson is hopeful about upcoming government policies and tax breaks that could further incentivise solar adoption.

“We’re looking forward to property tax breaks for solar-equipped homes, as mentioned by the Ministry of Finance. These initiatives could significantly boost the renewable energy sector in Jamaica.”

Jamaica Observer

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Dennis Chung | Developing resilience must be priority after Hurricane Beryl

July 12, 2024 jrobinson

Jamaica Public Service (JPS) technician aligning new wooden utility poles on July 7, 2024, in the aftermath of Hurricane Beryl’s passage in Portland.

Hurricane Beryl has brought significant damage to a few communities in Jamaica and it passed south of the island.

If it had travelled across the island like Hurricane Gilbert, then it would have had a devastating impact, as it would mean that you could apply that devastation to most, if not all parishes. If it had even come 10 miles further inland, then St Catherine and St Andrew, with the largest population, would have been dealt a severe blow.

The impact would have been way more than just the damage caused on the day but the significant cost of living increase, significant rebuilding costs (which could put persons into further debt), and reduced income as persons may have lost jobs if businesses had to close, possibly more loss of life, etc.

Already, with St Elizabeth hit so hard we will see food inflation. The country will recover and it will be more difficult for individuals.

Minister of Agriculture Floyd Green (right) speaks to St. Elizabeth greenhouse farmer, Vaughn Ebanks, about the damage to his facility in the aftermath of Hurricane Beryl. Green led an assessment tour of farms in the parish on Saturday, July 6, 2024. (Photo: JIS)

This highlights the need for us to develop greater resilience as the best solution to dealing with natural disasters. The fact is that, just like death, hurricanes and other natural disasters will come and we never know when. What we know though is that it is certain.

What we know also is that we cannot totally remove the personal impact. So, when a hurricane is coming we may be able to relocate to a different location, but your house cannot move. You will also be affected by food and other price increases and by electricity, water and telecoms disruption.

It means that the best approach is to build resilience, as a country but more importantly, individuals need to do this. Perhaps, instead of borrowing money to buy a car, borrow to build greater resilience at home, which is protecting your assets. The National Housing Trust (NHT), for example, has a loan for solar setup, which will assure you electricity throughout and after the hurricane, and will also send down your costs.

Personally, right throughout the hurricane, I had electricity, internet and water. And so after the storm passed the only thing I had to do was clean up outside and put back what was stored to protect them from the winds.

The challenge is that I was unable to get in touch with many because they lost all the utilities What this means is that if we need to get back to normal as quickly as possible then this resilience must be widespread, or else productivity will be impacted.

Jamaica’s GDP for 2024 is estimated at J$3.2 trillion (or J$8.6 billion per day).

A man walks in a flooded street as Hurricane Beryl hits the southern coast of the island, in Kingston, Jamaica, July 3, 2024. (Photo: REUTERS/Marco Bello)

With the impact of climate change, we can expect that hurricanes will get more intense, and even many modern roofs may have been built for a Category 3 hurricane. So as individuals and the wider Jamaican society as a whole, we need to start putting measures in place to make the country more resilient, or we will face greater personal and national losses. Spend the money now or it will end up costing us a lot more later.

OUR Today

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New NHT contributor benefits take effect July 1

July 1, 2024 jrobinson

Effective Monday (July 1), the National Housing Trust (NHT) will be launching a series of policy changes and initiatives that will significantly benefit contributors looking to buy or improve their homes.

There will be an expansion of the ’10 Plus’ home improvement loan.

As more Jamaicans become homeowners, there has been an increased demand for home-improvement financing.

Come Monday, all mortgagors will be able to access their home improvement loan after only 10 years, a significant reduction from the previous 15-year wait time. With a maximum loan amount of up to J$3.5 million, contributors will be able to undertake more extensive renovations to their properties with a shorter wait period.

‘Smart Energy’ home improvement loan

Under the Smart Energy loan facility, homeowners may access up to J$1.5 million to install energy-saving technology such as solar panels, batteries, solar water heaters, and solar insulation, as well as other renewable energy technology including windmills, hydropower, and biomass.

In addition, homeowners can also use the loan to install rainwater harvesting and storage systems, including tanks and pumps. Contributors will access this loan at a standard five per cent interest rate with a payback period of up to 10 years or by the time the homeowner reaches age 70, whichever comes first. This initiative promotes climate change resilience through improved energy-saving technologies, further enforcing NHT’s commitment to environmental sustainability.

Smart Energy grant (public sector pensioners)

In addition to the Smart Energy loan, the NHT is expanding its grant offering with the introduction of the Smart Energy grant. The programme will target public sector pensioners, who will be able to access up to J$1.5 million to enhance their homes with energy-saving technologies. The Smart Energy grant will benefit 30 pensioners per parish each year, for the next three years.

Beneficiaries will be selected at random based on the following criteria:

At the point of retirement, the pensioner was earning less than $30,000.99 per week;
Must be a homeowner (this includes owners of non-NHT constructed houses);
Must be 60 years or older;
Must not have already installed these systems;

Preference will be given to pensioners living in areas with unreliable or irregular electricity supply. This grant will help them reduce their utility bills and minimise their environmental impact. The NHT will advise when it will begin accepting applications for the Smart Energy Grant.

Policy change to benefit young adults

To address the rising need for housing among young Jamaicans, the NHT will now reserve a minimum of 10 per cent of NHT’s housing solutions to contributors under 36 years old. With the NHT’s 100 per cent financing (subject to affordability) for its scheme development, this new policy change opens the door for more young people to access NHT developments.

Homestarter programme

The state-owned entity will also make homeownership a reality for more young adults with its HomestarterpProgramme. The programme offers one-bedroom starter apartment complexes with easy access to urban centres. An innovative feature of the programme is its optional buy-back clause, which allows contributors to sell their units back to the NHT within 15 years.

This will free up the new mortgagor to access a new non-homeowner’s loan benefit from the NHT for the purchase of a new home. Currently, the programme includes housing developments in Vineyard Town and Howard Avenue, St. Andrew, and a planned development at Barracks Road, St James.

OUR Today

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Reduce your JPS bill…plug into solar for backup — JREA’s Robinson

June 26, 2024 jrobinson

Industry data now show utility-level solar costing between US$29 and US$96 per megawatt-hour (MWh) when compared to US$39 – US$101 per MWh for natural gas. Additionally, PV panel manufacturing costs have also fallen from $5 per watt in 2000 to less than $0.25 in 2023.

Even as the country’s sole light and power distribution company, Jamaica Public Service (JPS), takes steps to diversify its energy mix, director of Jamaica Renewable Energy Association (JREA) Jason Robinson has called on more residential clients to plug into solar as a form of back-up.

“Every home in Jamaica needs to be plugged in to some form of solar plus storage. Reduce your JPS bill but also have back-up power for safety. During blackouts the photovoltaic (PV) batteries act as a giant surge protector, so in the event there are fluctuations from the grid — which could damage your TV and other household appliances — users will be insulated from all of that,” Robinson told reporters during a Jamaica Observer Business Forum last week.

Having recently taken up the task to continue the build out of Jamaica’s solar energy resilience from Jamaica Energy Resilience Alliance (JERA), the JREA director, who is also the CEO of Solarbuzz Jamaica Limited, said the group as a successor will continue to advocate for solar adoption across, not just commercial and industrial enterprises but also for residential clients.

“These are the people we don’t want to have to leave the island in a case where, let’s say, the national grid should go down for six months. I say this because, following hurricanes in Puerto Rico, about 20-30 per cent of their population is said to have fled to the US after months without power. Here in Jamaica we can’t afford for that to happen, which is why we need to build resilience within both the commercial and residential markets — this as we also push other aspects of the global green campaign,” Robinson said.

As Jamaica continues to faces numerous climate change risks and high energy costs, stakeholders believe clean energy technologies like solar and battery storage can help to significantly mitigate these impacts, enhancing energy resilience while improving business profitability.

Considered to be the cheapest of the various forms of alternate energy sources, industry data now show utility-level solar costing between US$29 and US$96 per megawatt hour (MWh) when compared to US$39-US$101 per MWh for natural gas. Additionally, PV panel manufacturing costs, which have fallen from approximately US$5 per watt in 2000 to less than US$0.25 in 2023, have also created more opportunities for subsidised installations in some countries.

As reports from global sustainability firm Rocky Mountain Institute (RMI) project wind and solar projects remaining on track to account for more than a third of the world’s electricity by 2030, more countries across the globe have stepped up their adoption of these forms of energy. Locally, a US$1.2-billion price tag has been attached to the realising of clean energy transition — a move under which Jamaica is seeking to achieve its target of having 50 per cent renewables (a mix of wind, solar and energy) by 2030.

Mark Dennis, chair and senior energy expert for JERA and who played an active role in the recent re-energising of Jamaica’s solar resilience under the just-completed, three-and-half-year Strengthening Energy Sector Resilience (SERS) in Jamaica programme, further supported the adoption of solar technologies locally.

“Whether for commercial or residential clients, if there is a disruption to the grid for any reason— man-made or natural — being plugged into solar technologies will allow clients to still have power flowing to their facilities. As a consultant, my recommendation is never for people to completely dismiss JPS, as we still need a central grid, but people should also begin to supplement their usage with solar as a viable form of back-up,” he said.

Jamaica Observer

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Push for more businesses to adopt solar resilient systems…JERA completes 3.5-year SERS programme, passes baton to JREA

June 26, 2024 jrobinson

The Jamaica Renewable Energy Association (JREA) is looking to further heat up the market as it continues to lobby for the adoption of solar photovoltaic (PV) resilient systems among the energy solution mix for more businesses across Jamaica.

Jason Robinson, CEO of Solarbuzz Jamaica and JREA board member, speaking at a recent Jamaica Observer Business Forum, said that while its forerunner, the Jamaica Energy Resilience Alliance (JERA), has done a wonderful job in starting a ‘revolution’ in the industry, there are some other areas concerning policy on which his entity wants to double down on as it takes the baton and build up the momentum.

“We want to have a greater working relationship with government and also with more partners in the financing sector to help with the build-out of residential solutions for more of our clients. As efforts to develop the country’s renewable energy footprint gets bigger each year, we believe there will be lots more opportunities in this area under which businesses can thrive. The JERA has over the last three year significantly helped to pull the industry together and we will do our best in moving those efforts forward,” he said.

The JERA, following its culmination of a three and a half years partnership with the United States Agency for International Development (USAID) led by the CADMUS Group, has sought to re-energise the country’s energy sector. Through the implementation of its Strengthening Energy Sector Resilience in Jamaica programme (SESR-Jamaica), the body has helped in the adoption of distributed and resilient solar PV and PV+ technologies.

In bringing together sector players comprising independent energy advisory services, financing options and a network of qualified and reputable solar PV installers, the programme supported more than 100 commercial and industrial businesses offering tailored assistance, regulatory guidance and access to financing opportunities for investment quality projects.

“We had several entities that formed JERA, made up of local, international, private sector and academia all aligned to the same goal of strengthening the resilience of Jamaica’s energy sector. Over the life of our programme we’ve managed to mobilise US$5.4 million for the financing sector in Jamaica which was spread across 24 commercial and industrial clients and 35 facilities. In other task areas we also provided training for approximately 97 students and professionals in solar installation. In the last few years I would say that the JERA as a body has definitely moved the needle in the mobilisation of solar PV systems,” said Mark Dennis, chair and senior energy expert for JERA.

“Our programme wrapped up on June 14, but it paved the way in re-energising the industry as it demonstrated to the various stakeholders that there can be a seamless way in doing things. We’ve created a database and is now looking to hand over to the JREA for them to continue that push we’ve started. Based on the work they have been doing in terms of their advocacy and skill sets, we believe they are the most ideal [body] to pick up from where we have left off,” Dennis further noted.

Based on its technical experience from working with a number of clients, the lobby group said it is confident that a new wave of solar PV/PV+ adoption will be robust and consistent across multiple businesses beyond the traditional hotel and manufacturing sectors, to include new areas such as agriculture, medicine and business process outsourcing.

For agriculture, the entity said that high daytime loads due to water pumping for irrigation and cold storage of produce will result in solar PV becoming a more cost-effective solution. This, as agrivoltaics offers additional benefits such as shade and temperature control for certain crops.

Within business process outsourcing and medical facilities which usually drives high energy costs, accounting for about 70 per cent of their electricity bill, installing PV panels, the body said will significantly help to reduce these costs as it increased roofing insulation and lowers daytime AC loads. This, largely as up to 50 per cent of the heat in a space, can come from an uninsulated roof.

“Any facility where most consumption occurs between 8 am – 5 pm stands to benefit greatly,” the JERA indicated, noting that for those entities in the hotel and tourism sectors, usually having high night-time loads and lower daytime consumption, they too will also find solar PV feasible, particularly when combined with storage solutions.

Business development manager & director at Jamaica Macaroni Factory Nick Chen, in sharing the experience of his company with journalists during the forum, said that as a result of the assistance received from the JERA to set up a PV system across its business, this has since then allowed it to power about 60 per cent of operations from the alternate energy source during the daytime.

“Since installation, we’ve been able to save about 20 per cent on our JPS bill. This has been a major help for us in our cost savings and our ability to become more competitive, especially in our export market where our main brand, Marco Polo, is sold the most,” he said.

Jamaica Observer

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Nervous banks

June 26, 2024 jrobinson

Financiers shy away from funding solar systems

PLAYERS in the nation’s renewable energy sector say banks are still nervous about lending to entities wanting to instal solar systems to help reduce their electricity bills each month.

The issue came to light at the Jamaica Observer Business Forum held recently. The forum was held to look at the successes of the Strengthening Energy Sector Resilience in Jamaica (SESR-Jamaica) programme which lasted for three-and-a-half years which targeted commercial and industrial entities for reducing their power costs and green their operations.

However this comment from Mark Dennis, chair, Jamaica Energy Resilience Alliance (JERA) and senior energy advisor to SESR-Jamaica, said one of the things he has had to do in the programme is to dispel some of the myths banks have surrounding solar power systems for businesses.

“One of the biggest myths that we have encountered particularly in the financing sector is that the technology is not mature enough or that it fails too often and that has kinda fed into a lot of the apprehension that banks have [to lend for solar systems], so we thought it important to demonstrate in a definitive way that it works,” Dennis told the forum.

His point was supported by Jason Robinson, vice-president of Jamaica Renewable Energy Association (JREA) and CEO of Solar Buzz.

“What we have seen over the years is that there has always been a problem to get the financial institutions on board. They have always been a bit hesitant because what they are scared of is default rates, that’s the main thing.”

But Robinson said once installers of solar systems are installing systems that perform as promised, clients are not going to default on their loans.

“The key is to have these installers as members of Jamaica Renewable Energy Association to really get the confidence of the banks in there because the banks haven’t really put any cohesive energy lending policies in place,” he added.

Robinson said his experience is that there is only one person at each bank who interacts with Government agencies like the Development Bank of Jamaica (DBJ) about loans targeted to those wanting to instal solar systems, but when these people move on to other jobs, the knowledge goes with them.

“There is no focus, so like how the Government gives focus to the BPO sector and there is a cohesive push to get investments here, we haven’t gotten that from the Government for renewavle energy…especially distributed energy,” Robinson pointed out.

Lasco Manufacturing, which in April launched a 500megawatt solar photovoltaic plus (PV+) system at its White Marl, St Catherine, location, he said, was chosen to be part of the programme to demonstrate definitively that the technology works.Lasco had a 10KW solar hybrid system installed which also provides power to the adjacent Central Village multi-purpose centre.

But Dennis who has been having seminars with banks about solar power to encorage them to finance energy systems particularly for commercial and industrial entities said he detected that some of the misconceptions the banks have about the technology stems from them being poorly installed and stressed that that apprehension can be overcome by ensuring that those chosen to instal the systems are registered with the Jamaica Renewable Energy Alliance (JREA) which guarantees they are well-trained.

“They are getting a lot better now, but the feedback that we are getting is that some of them are still a little hesitant and that’s understandable, because how banks operate, they look at the risk, and for them, there has to be adequate collateral or security for them to lend. We have seen a trend over the last several years, with banks being a little more amenable to lending to the renewable energy industry,” Dennis added.

Edison Galbraith, general manager for channels, relationship and marketing at the DBJ, put some of the reticence down to cycles and the perceived risks the financial institutions see in lending for solar projects outside of large projects aimed at supplying the grid.

“The financial sector is fairly broad and they have a lot of options available to them, so they are looking at all different products and determining where to put their money, so it’s critical, and we’ve done some work over the years and getting financial institutions, suppliers in the market, energy auditors to go out there and get businesses to take up renewable energy,” Galbraith said.

He said one of the key outcomes of the SESR-Jamaica programme is that it has re-energised the industry to get more persons onboard.

DBJ provides loans, grants for energy audits, guarantees under the credit enhancement facility and work with suppliers in the market to get leads and customers from JERA.

He said there was a lot of activity from companies wanting to instal solar systems from 2013 to 2017 but that interest died down and is only now being rekindled.

“DBJ started its energy programme probably around 2012 and over that period we supported over 300 businesses getting energy efficiency in the first instance as well as renewable energy systems,” Galbraith pointed out.

He said that programme covered the poultry sector, factories, barber shops, offices, small hotels and residences which can borrow to $5 million.

“The bulk of that money, $4.5 billion, was done between 2013 to 2019,” Galbraith added.

He said the default rate on those loans is less than one per cent, leading players in the industry to question why private sector banks are still hesitant to lend for the projects.

The revelation brought consternation from Robinson.

“The majority of Jamaicans want solar for their homes and the lending for that is extremely difficult… even from small and medium-sized enterprises, it’s difficult to get the financing for it, and the banks really should be using the systems as collateral, not asking for additional collateral because the systems have extreme value,” Robinson said.

He pointed out that if it wasn’t for the DBJ launching their energy facility, a renewable energy system sector for distributed energy would not have developed.

He wants Government to give more support to the sector to help get loans to fund the systems which save entities millions in electricity bills each year.

“We have installed for many factories and that offset up to 70 per cent of bills,” Robinson pointed out.

“The banks should just be giving money away to those types of businesses [to instal solar systems], in my opinion, because the impact is so huge because there is no demand charge,” he added.

Nicholas Chen, director at Jamaica Macaroni Factory, which installed a solar system at its factory 18 months ago, said he had to put up collateral to get a loan for a solar system at the factory and questioned how many other companies can find such collateral to get a loan.

He said his system has saved the factory 20 per cent of its energy bill since installation in January last year.

But all is not lost, Dennis noted. From the seminars, he said he is seeing positive responses from banks to consider lending to companies wanting to instal solar systems.

“The responses were good and we saw a marked difference after the workshops. They are now more willing to lend. At the end of the programme, we managed to mobilise over US$5 million in financing for solar PV systems; half of that has already been invested already.”

The DBJ itself said 17 financial institutions are working with the DBJ and a lot of these are not required to put cash up for loans.

Jamaica Observer

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