Wigton Windfarm Limited will remove its 10 per cent cap on individual ownership in two months, but already, investors are repositioning with heavy share transactions, the most robust of which occurred on Thursday with trades worth over $500 million.
“Removing the cap sets the stage for someone or group of bodies to try take control of the company. The belief is that in that environment, it will probably lead to an increase in the stock price,” said Mayberry Group CEO Gary Peart during an investor briefing last week.
Wigton is a renewable-energy producer that was formerly owned by the Jamaican Government but was divested via the stock market in 2019. Partly to entice subscription by a wide base of the public, the 11 billion share units were priced at an accessible 50 cents per unit during the IPO. Individual ownership in the stock was also capped at 10 per cent in a market that allows for such holdings of up to 80 per cent.
“Companies that do well are companies that are focused, and so the control issue is not important,” Peart asserted. The Wigton IPO was brokered by Mayberry Investments Limited, and one of its sister companies currently holds a stake in the wind farm.
The market activity last week knocked the stock off its perch to around 96 cents per share.
On Thursday, investors traded over 561 million units of WIG shares, the most activity the stock has seen in at least two years, according to Jamaica Stock Exchange data. The stock price fell 15 per cent on that day to close at 96 cents per share, but it was then still up 20 per cent year on year.
However, the rout was not sustained. By Friday, the stock had climbed back to $1.07 per share. It still closed 3.6 per cent lower for the week but was up 35 per cent year to date.
The WIG stock trades at around 38 times what it earned in the last financial year. This within the context of an overall market trading at a multiple of nine times.
The company is in the process of finalising an upgrade programme for some of its turbines that were installed two decades ago and are at the end of their useful life. Wigton has been cagey about disclosing the level of investment required but says it is in the process of seeking financing. Jamaica’s utility regulator is also yet to approve the upgrade programme laid out by the wind farm operator.
Wigton’s articles of incorporation in relation to the shareholding limitation will cease to have effect after May 2024, according to information on renewable energy producer’s website.
The largest shareholders in Wigton, based on market disclosures to December 2023, are Mayberry Jamaica Equities, a fund with 10 per cent interest; VM Building Society 9.87 per cent, National Insurance Fund 6.4 per cent, ATL Group Pension Fund 5.4 per cent, and Sagicor Investments with 4.4 per cent.
Wigton Windfarm is currently valued at $11.77 billion on the market.
The escalating expenses associated with electricity in Jamaica have significantly driven the expansion of solar energy usage. Notwithstanding this challenge, substantial initiatives have been implemented by both the government and CARICOM to foster the growth of renewables, enhancing affordability for Jamaica and other Caribbean nations. A notable exemption involves the elimination of taxes on the importation of solar lithium batteries. Given that solar batteries constitute a significant proportion of the overall expenses in a solar energy system, the removal of the common external tariff on solar lithium batteries has played a pivotal role. Consequently, this policy adjustment has empowered more homeowners to not only curtail energy costs but also to avail themselves of robust backup power options during extended blackouts, a scenario often induced by hurricanes or other natural disasters.
In a recent turn of events, the Council for Trade and Economic Development (COTED) made a decision that sent shockwaves through Jamaica’s renewable energy sector: not to extend the suspension of the Common External Tariff on Jamaica’s importation of lithium-ion batteries from outside the Caribbean which means lithium batteries would now be taxed 20% on importation. This decision, which could have had dire consequences for the burgeoning renewable energy industry, was met with rightful objection from the Jamaican Government. However, the disappointment lies not only in the initial decision but also in the government’s delayed response and lack of transparency in addressing the issue.
As an active participant in the renewable energy sector, I was deeply concerned when news broke of COTED’s decision to remove the suspension of the lithium battery tariff. This decision threatened to undermine Jamaica’s progress towards achieving its Vision 2030 goal of sourcing 50% of electricity from renewable resources by 2030. With lithium batteries playing a crucial role in renewable energy storage, the imposition of tariffs would have undoubtedly hindered the growth of the industry.
The situation was further compounded by the silence from key government officials. Despite Jamaica’s attendance at the COTED meeting in Barbados, there was no public acknowledgment for a staggering 30 days of the decision to reinstate the tariff. A TV news report that aired on January 30, 2024 was what prompted the government to release a press statement on January 31, 2024 addressing the issue.
The lag in the government’s response forced stakeholders of the (renewable) industry to pay the 20% tax for the entire month of January associated with the purchase of Lithium batteries thus undermining confidence in the commitment to champion the renewable energy agenda. Stakeholders of the renewable energy industry are now left questioning if their best interests are truly being represented.
The refusal of the government to disclose the name of the company in Barbados responsible for the tariff imposition adds another layer of opacity to the situation. Why not publicly state the name of the company that all were being forced to purchase tax free Lithium batteries from if the tax exemption had not been reinstated. This lack of transparency appears tone deaf particularly considering the significant financial implications incurred by Jamaican solar companies as a result of the unexpected duties.
The proactive move from the Jamaican government should have been an immediate response followed by full disclosure and that it is making every effort to refund solar companies the taxes paid by them during the month of January. While we acknowledge the reinstatement of the tariff exemption for 2024 and the relief it provides, the absence of accountability from the government and a plan to reimburse impacted industry players undermines their stated support for the renewable energy sector.
In the absence of a concrete plan from the government to prevent a recurrence of such events, uncertainty looms at large as to what will happen when the exemption expires February 2025. The lack of proactive measures to safeguard industry players against a repeat of events or similar cost impacting instances in the future will only erode trust and heighten skepticism in Vision 2030 and the government to fulfill its commitments. Stakeholders are now left to speculate on the future of the renewable energy industry in Jamaica.
As the need and demand for renewable energy continues, it is imperative that the Jamaican government takes swift and decisive action to address these grievances and secure the renewable energy sector and its stakeholders. Without accountability, transparent communication and engagement with stakeholders of the industry, and a strategic plan by the government, the reality of a sustainable energy future for Jamaica remains at risk of being derailed by bureaucratic inefficiencies or political apathy.
The CARICOM Secretariat has finally given approval for the suspension of the Common External Tariff (CET) on the importation of lithium-ion batteries into Jamaica.
The suspension of the CET took effect on February 2, 2024. It will last until February 1, 2025, speciifically for the importation of 240,000 Lithium-ion batteries.
Jamaica will continue to monitor the industry and utilise the mechanisms available under the Revised Treaty of Chaguaramas to verify and determine regional capacity to supply the product in the coming months. This will examine the scope for a renewal of the CET suspension.
In expressing satisfaction with the decision, Minister of Industry, Investment and Commerce (MIIC) Senator Aubyn Hill stated that the approval is a testament to the Government’s commitment to creating a sustainable and innovative future for citizens.
“The discussions with CARICOM and the successful negotiation of the CET suspension underscores our dedication to fostering a clean energy landscape in Jamaica. We are pleased that this decision will not only boost the renewable energy sector but will contribute significantly to Jamaica’s overall commitment to a greener and more sustainable future,” said Hill in a release issued by the MIIC today.
It was previously reported by the Opposition spokesperson on investment, trade and global logistics, Anthony Hylton, that CARICOM had denied Jamaica’s request for the suspension of the CET following an 11th-hour response by another member state at the meeting with the CARICOM Council on Trade and Economic Development (COTED).
However, the MIIC said that approval was granted following intervention by Hill at the 57th Meeting of the CARICOM Council for Trade and Economic Development (COTED) on November 27, 2023.
The MIIC added that there were subsequent bilateral consultations between Jamaica and Barbados, which seemingly confirms the island as the member state that delivered the 11th-hour response to block Jamaica’s request.
According to the Amended Article 83 of the Revised Treaty of Chaguaramas, which refers to the application of the CE , any alteration or suspension of the Common External Tariff on any item shall be decided by COTED in situations where the product is not being produced in CARICOM, the quantity of the product produced in the community does not meet demand, or the quality falls below the community standard.
The MIIC said that every effort was made to expedite the assessment of Barbados’s capacity to supply the product and to engage the CARICOM Secretariat for a speedy resolution.
The collaborative efforts of representatives from the Ministry of Industry, Investment and Commerce (MIIC), Ministry of Science, Energy, Telecommunications and Transport (MSETT), Ministry of Foreign Affairs and Foreign Trade (MFAFT), and Ministry of Finance and the Public Service (MOFPS), were integral to the successful negotiations. The CARICOM Secretariat also played a vital role as a facilitator. In addition, guidance was sought from the Attorney General’s Chambers (AGC) and the Jamaica Customs Agency (JCA).
JAMAICA’s Ministry of Industry, Investment and Commerce (MIIC) on Monday announced that the Caricom Secretariat has authorised the suspension of the Common External Tariff (CET) in respect of the importation of lithium-ion batteries into Jamaica.
This decision follows an intervention made by Senator Aubyn Hill, the minister of industry, investment and commerce, at the 57th meeting of the Caricom Council for Trade and Economic Development (COTED) on November 27, 2023, in addition to subsequent bilateral consultations between Jamaica and Barbados. It marks a pivotal development in fostering a conducive environment for investments in Jamaica’s renewable energy sector.
“The suspension of the CET is effective from February 2, 2024 to February 1, 2025, for a quantity of 240,000 lithium-ion batteries. Jamaica will continue to monitor the industry and utilise the mechanisms available under the Revised Treaty of Chaguaramas to verify and determine regional capacity to supply the product in the coming months. This will be an important factor in examining the scope critical for a renewal of the CET suspension,” according to a release from the MIIC on Monday.
The release said the collaborative efforts of representatives from MIIC; Ministry of Science, Energy, Telecommunications and Transport; Ministry of Foreign Affairs and Foreign Trade; and Ministry of Finance and the Public Service were integral to the successful negotiations.
“The Caricom Secretariat also played a vital role as facilitator. In addition, guidance was sought from the Attorney General’s Chambers and the Jamaica Customs Agency. These collective actions align with the provisions outlined in the Amended Article 83 of the Revised Treaty of Chaguaramas, regarding the operation of the Common External Tariff. This article stipulates that any alteration or suspension of the Common External Tariff on any item shall be decided by COTED in situations where the product is not being produced in the [Caribbean] Community, the quantity of the product produced in the community does not meet demand, or the quality falls below the community standard,” said the release.
It also said that the Ministry of Industry, Investment and Commerce, acting as the authorised body responsible for engaging with COTED on Jamaica’s behalf, played a pivotal role in securing the favourable outcome. Every effort was made by the MIIC and other GOJ representatives to expedite the assessment of Barbados’s capacity to supply the product and to engage the Caricom Secretariat for a speedy resolution.
In expressing his satisfaction with the decision, Hill said: “This approval is not just a win for the renewable energy sector but a testament to our commitment to creating a sustainable and innovative future. The discussions with Caricom and the successful negotiation of the CET suspension underscore our dedication to fostering a clean energy landscape in Jamaica. We are pleased that this decision will not only boost the renewable energy sector but will contribute significantly to Jamaica’s overall commitment to a greener and more sustainable future.”
Minister of Industry, Investment and Commerce Senator Aubyn Hill has shot back at claims that a delegation he led to the last meeting of the Caribbean Community (Caricom) Council on Trade and Economic Development (COTED) did little to preserve a common external tariff (CET) waiver on the importation of lithium-ion batteries. Lithium-ion batteries are used to store the excess power produced by solar photovoltaic systems.
Speaking to the Jamaica Observer last Friday following a press briefing held at Kingston Wharves Limited in conjunction with the European Union, Hill said he challenged COTED’s decision when he attended the meeting.
“I was there; I pushed back when Minister [of State in Foreign Trade and Business Sandra] Husbands from Barbados raised the issue. I raised the issue that the technical team representing Barbados…did not raise the issue. I raised the issue and objected,” he asserted.
Documents submitted to the Business Observer reveal that at the COTED meeting held November 27-28, 2023, in Georgetown, Guyana, the Jamaican delegation submitted a “Request for Approval of the Suspension of the CET on a Priority List of Renewable Energy and Energy Efficient Technologies”, citing the need to increase the penetration of renewable energy sources and greater adoption of energy efficiency measures in order to reduce the country’s carbon emissions.
The application for the roll-back on the 20 per cent charge would apply to compact fluorescent lamps, vapour absorption refrigeration systems, thermal storage air conditioning systems, rechargeable batteries for renewable energy systems (photovoltaic systems), among others. The council however refused to approve the suspension of CET on lithium-ion batteries, nothing that “Barbados indicated its ability to supply 240,000 lithium-ion batteries… as requested by Jamaica, for the period 1 January 2024 to 31 December 2025”.
The documents did not identify the name of the Bajan company that has offered to supply the Caricom Single Market with the batteries, but checks have revealed that Meritsun Power is the only supplier of that type of energy storage unit in the Eastern Caribbean island.
However, according to Alex Hill, president of the Jamaica Renewable Energy Association (JREA), “The Ministry of Science, Energy, Telecommunications and Transportation (MSETT) is choosing to protect the name of the company in Barbados instead of sharing it with stakeholders in the sector. This company formally approached COTED and stopped our local tax incentives and therefore should not be protected by our Government. Their name should be publicly available so that importers in Jamaica can contact them and make orders from them. After all, they are now the preferred supplier for the region.”
Questions arising
The decision of COTED and what was deemed the inaction of Minister Hill and his team have been met with ire by both the JREA and the Opposition People’s National Party.
Noting concerns being raised in the renewable energy industry, Opposition spokesman on investment trade and global logistics Anthony Hylton questioned why a last-minute submission by Barbados was allowed to block Jamaica’s request for CET exemption.
Moreover, he underscored, “It is the practice that a request for suspension is not denied without prior evidence resulting from an investigation by the Secretariat technical staff that the Caricom producer satisfies at least 75 per cent of the product demand in Caricom.”
In an e-mail to the Business Observer, JREA President Hill, who is the son of Minister Aubyn Hill, argued, “We know that this company cannot do what they purport to do because Barbados does not have known lithium deposits, industrial lithium processing or commercial manufacturing facilities for lithium batteries. As a point of reference, Jamaica imported approximately 11,000 lithium-ion batteries for renewable energy purposes between 2021 to 2022.”
He added: “The Jamaican delegation that attended this past COTED meeting should have vehemently rejected any suggestion by the Barbadian delegation that a single company could supply the needs of Jamaica without first reviewing the technical aspects of their product offerings, their manufacturing capability and standards. That is what the stakeholders in the renewable energy sector expect from their Government, to protect our local industry players and the Jamaican citizens who have spoken with their wallets and are purchasing lithium-based battery energy storage systems en masse. These taxpaying citizens should not bear the brunt of a 20 per cent tax because a no-name company, without a track record, or even a website, makes an erroneous claim that they can supply the needs of the Jamaican market.”
The JREA president further pointed out, “It has been reported that the Trinidadian Government has chosen not to implement the 20 per cent tax as the company in Barbados has not yet been able to substantiate their claims.”
With this is mind, he questioned why the Government has quickly implemented the CET in an “unplanned manner” and what timeline MSETT has in mind to request a revocation of the CET. This question was posed on Friday to Minister Hill.
Next steps
In his response, the minister said his portfolio ministry has alongside MSETT investigated the claim made by the Barbados company of its capacity to supply lithium-ion batteries to the region.
“A position is coming out very shortly,” he told the Business Observer, adding: “What we were arguing is that they’re not manufacturers of [lithium-ion] batteries.”
Based on COTED rules, a company’s market share can be protected with the application of a CET on similar products imported from outside the region once it can prove that it can adequately supply the Caricom Single Market. Additionally, the entity must show that it is engaged in the manufacturing of the product with most of the raw materials originating from the region.
Highlighting that he has written to the Caricom Secretariat to object to the CET, Minister Hill explained that the objection is accompanied by a request for the exemption to the tariff to be reinstated for the period January 1, 2024 to December 31, 2025. Additionally, he said that his ministry will present its findings to the Caricom Secretariat by latest next week.
Notwithstanding, the younger Hill, who is the managing director of IREE Solar, noted what he called a “condescending lack of communication” from MSETT.
“It is only exacerbated because the JREA was preemptive in requesting planning meetings with the MSETT team and, as such, the MSETT team had clear data and a plan going into this last COTED meeting to have the incentives extended. Furthermore, this decision was arrived at during the November 2023 meeting of COTED, but all stakeholders were informed of the decision by a newspaper article on the 28th December, 2023; a mere three days before the tax was to be applied. There was no proper communication with investors, project developers, importers or purchasers, and no planning period given to the industry. This cannot be the proper manner in which to conduct business in the energy sector in [2024],” he stated.
He continued: “In conclusion, it is evident that whatever regulations and rules that are currently being used to govern objections to incentives at COTED, and the application of CET to energy, efficient and renewable energy items is flawed, ineffective, and needs to be overhauled immediately. No company from any Caricom nation should be allowed to object without formally submitting specific data surrounding their ability to manufacture on scale, their product/s’ technical specifications and other pertinent business details. There must also be punitive measures applied against that single company and/or the government representing said company if their claims are untrue and fall short of their stated intent. Millions of Caricom citizens should not be expected to bear the burden of a tax during the deliberation stage of these incentive negotiations. That is unfair and illogical.”
In June 2022, after much agitation from the JREA, Jamaica’s Minister of Finance and the Public Service Dr Nigel Clarke announced the removal of both GCT and CET on lithium-ion batteries – the latter being due to an approval from COTED. However, when contacted by the Business Observer last week, he clarified that matters under COTED are handled by the Ministry of Industry, Investment and Commerce. Additionally, he outlined that once COTED has reached a decision, it is binding on all Caricom member states and so the tariff on lithium-ion batteries will have to be reinstated.
Another insider from the JREA has indicated that the Ministry of Foreign Affairs and Foreign Trade will also submit a request to COTED for the reversal of the decision to impose the tariff.
The government says it’s seeking a revision of the Council for Trade and Economic Development, COTED’s, decision not to extend the suspension of the Common External Tariff on Jamaica’s importation of lithium-ion batteries from outside the Caribbean.
COTED is the organisation responsible for the promotion of trade and economic development within CARICOM.
At a meeting held by COTED in November last year, the Ministry of Science and Energy requested that the suspension of the tariff on Jamaica’s importation of nine renewable and energy efficient technologies be extended until December 2025.
Among the technologies listed were lithium-ion batteries.
The previous two-year suspension ended December 31 last year.
However, according to the ministry, COTED decided not to grant the extension as a result of the Barbadian government indicating that a company located in the eastern country was able to supply the quantity of lithium-ion batteries being requested for tax exemption.
The ministry says following an assessment of the company, it was determined that the lithium-ion batteries on Jamaica’s priority list were different from those supplied by the Barbadian company.
It noted that the company’s existing production capacity amounted to only 1.5 per cent of the lithium-ion battery imports, particularly for use in renewable energy systems.
According to the ministry, the decision not to suspend the tax on the batteries did not sufficiently consider the rules of origin under the Revised Treaty of Chaguaramas and the production and export capabilities of the Barbadian company.
The ministry says it requested a revision of the council’s decision in mid-January.
While acknowledging the importance of COTED’s decision to Jamaica’s renewable energy sector, the ministry says it’s committed to working closely with its partner Ministries to have the decision reconsidered.
The company from Barbados has been asked to provide the relevant information by no later than January 5, 2024
The Ministry of Science, Energy, Telecommunications and Transport has advised that a 20 per cent tariff will be applicable to the importation of lithium-ion batteries from outside the CARICOM region as of January 1.
A two-year suspension of the common external tariff (CET) is in place until the end of December, and Jamaica requested a further two year extension at a November meeting of the Council for Trade and Economic Development (COTED).
However, the ministry said in a media release on Friday that a Barbados-based company has objected to Jamaica’s application, indicating through the Barbados government that they produce the type of lithium-ion batteries being requested for CET suspension.
The ministry said the necessary due diligence is now being done by the Jamaican authorities to assess the Barbadian company’s certificate of origin and their ability to meet the specifications and provide the quantities required by Jamaica’s renewable energy sector.
The company from Barbados has been asked to provide the relevant information by no later than January 5, 2024, to allow for the preparation of the Government of Jamaica’s response to COTED.
“Due to the objection raised by the Barbadian company, a 20 per cent CET will be applicable to the importation of lithium-ion batteries from outside the region as of 1st January 2024. While the country’s renewable energy stakeholders should remain guided by the Jamaica Customs Agency, it should be noted that only lithium-ion batteries imported for use in solar applications will be exempt from GCT,” the ministry stated.
The CET is applied by all participating countries on select products. It effectively raises the price of imports from outside of the region, giving internally manufactured products a competitive advantage.
Solar panels are slowly becoming the new normal, but plenty of questions come with the most accessible form of renewable energy. Are plug-in solar panels any good? How much maintenance do they need? And, most importantly, how long do solar panels last?
There are plenty of hidden costs of home solar panels, but thankfully, frequent replacements aren’t something you’ll need to worry about. According to Sunrun, an industry-leading manufacturer, solar panels are made to last more than 25 years, with many from as early as the 1980s still working today. This Old House corroborates this statistic, saying that while it’s hard to gauge precisely how long solar panels last, many come with 25 to 30-year warranties, ensuring they’ll stick around for the long haul.
So, although you may need to fork over extra cash upfront, installing solar panels is a worthy investment for any household looking to cut back on energy costs. Given that they’ll last you a few decades, you won’t need to constantly spend money to maintain solar panels, and you can do a few things to make them last even longer.
How to make sure your solar panels last long
Solar panels aren’t cheap, and you’ll want your investment in green energy to last as long as possible. Thankfully, they aren’t very fragile either, so barring any unforeseen natural disaster or randomly accurate lightning strike, your solar panels will last you a few decades. But there are a few things you can do to ensure you get the most out of your investment.
First, you want to keep your solar panels clean and clear of any debris. While dirt, grime, pollen, and leaves won’t destroy your panels, large buildups could impact their efficiency. Usually, rain will be enough to get rid of most of these, but regular cleaning with a broom or hiring a professional team will secure your solar panels a long lifespan.
You should also frequently monitor the usage of your solar panels. Sometimes, after a cleaning, solar panels can develop random electrical problems, so if you notice a spike in your utility bill, it’s best to call a professional to check on them. And if your systems have a shut-off switch, make sure it doesn’t accidentally get turned off by yourself, your children, or anyone else. Although useful, if you, your children, or someone else accidentally shut off your solar panels, you likely won’t notice it immediately, which could result in wasting built-up energy generation.
There has been no shortage of bleak climate news this year: unprecedented global heat fueled deadly extreme weather events, scientists issued dire warnings that next year may be worse still, and the world’s carbon pollution kept rising.
But amid the gloom, there have also been signs of progress. Renewable energy records have been set, the world celebrated one of its greatest environmental wins and countries made a cautious but historic step towards a fossil fuel-free future.
Here are five reasons to be hopeful.
A surge in renewable energy
As the need to rapidly wean off planet-heating fossil fuels becomes increasingly urgent, there have been some clean energy bright spots around the world.
On Halloween, Portugal started a record-breaking streak. For more than six days straight, between October 31 to November 6, the nation of more than 10 million people relied solely on renewable energy sources — setting an exciting example for the rest of the world.
The year 2023 is on track to see the biggest increase in renewable energy capacity to date, according to the International Energy Agency.
China, the world’s biggest climate polluter, has made lightning advances in renewables, with the country set to shatter its wind and solar target five years early. A report published in June found that China’s solar capacity is now greater than the rest of the world’s nations combined, in a surge described by the report’s author, Global Energy Monitor, as “jaw-dropping.”
It can’t be ignored, however, that China also ramped up its coal production this year, turning to the fossil fuel as devastating heat waves increased energy demand for air conditioning and cooling, and as persistent drought in the country’s south impacted hydroelectric supplies, which are reliant on sufficient rainfall.
Hopes were raised that the country’s coal production will peak and come downsoon, when China and the US in November announced they would resume cooperation on climate change, pledging a major ramp-up of renewable energy, specifically to replace fossil fuels.
A climate deal that targets fossil fuels
After more than two weeks of fraught negotiations, the COP28 climate summit in Dubai concluded in December with nearly 200 countries making an unprecedented commitment to move away from fossil fuels.
While the agreement fell short of requiring the world to phase out coal, oil and gas — which more than 100 countries had supported — it did call on countries to “contribute” to a “transition away from fossil fuels in energy systems.” This marked the first time that all fossil fuels, the main drivers of the climate crisis, were targeted in a COP agreement.
COP28 President Sultan Al Jaber, who presided over the negotiations, called the agreement “historic,” adding that the deal represented “a paradigm shift that has the potential to redefine our economies.”
Howimpactful this deal ultimately is will depend on what countries do next to implement it. Many experts warned of loopholes that could leave the door open to a continued expansion of fossil fuels.
But that a deal was struck at all on fossil fuels was widely welcomed seen as a breakthrough.
“We got people to do things they haven’t done before,” US climate envoy John Kerry told CNN’s Christiane Amanpour after the summit, describing it as a “historic success.”
Plummeting deforestation in Brazil
After years of soaring deforestation in the Brazilian Amazon, there was good progress this year in reducing forest destruction.
The Amazon is the world’s biggest rainforest and its protection is seen as vital to curbing climate change. It acts a carbon sink that sucks in planet-heating pollution from the atmosphere. When forests or trees are destroyed, they emit greenhouse gases. Deforestation and land degradation is responsible for at least one-tenth of the world’s carbon pollution.
Deforestation in Brazil fell by 22.3% in the 12 months through July, according to data from the national government, as President Luiz Ignácio Lula da Silva started to make progress on his pledge to rein in the rampant forest destruction that occurred under his predecessor, Jair Bolsonaro.
Marcio Astrini, head of advocacy group Climate Observatory, described it as an “impressive result” that “seals Brazil’s return to the climate agenda.”
Still, Brazil’s deforestation rate remained nearly twice that of its all-time low in 2012. Around 9,000 square kilometers of rainforest were destroyed in the period. There’s a long way to go to meet Lula’s pledge to reach zero deforestation by 2030.
The ozone layer is healing well
The Earth’s ozone layer is on track to recover completely within decades, a UN-backed panel of experts announced in January, as ozone-depleting chemicals are phased out across the world.
The ozone layer protects the planet from harmful ultraviolet rays, but since the 1980s, scientists have warned about a hole in this shield due to ozone-harming substances, including chlorofluorocarbons (CFCs), which wereused widely in refrigerators, aerosols and solvents.
International cooperation has helped stem the damage. A deal known as the Montreal Protocol, which came into force in 1989, began the phase-out of CFCs. The ozone layer’s subsequent recovery has been hailed as one of the world’s greatest environmental achievements.
If global policies stay in place, the ozone layer is expected to recover to 1980 levels by 2040 for most of the world, the assessment found. For polar areas, the timeframe for recovery is longer: 2045 over the Arctic and 2066 over the Antarctic.
A study published in November, however, cast some doubt on this progress. The paper, published by Nature Communications, found that a hole in the ozone layer over the Antarctic “has not only remained large in area, but it has also become deeper throughout most of the Antarctic spring.” But some scientists were skeptical of the study’s findings, saying it relied on too short a time period to draw conclusions about the layer’s long-term health.
Electric vehicle sales surge
The popularity of electric vehicles has surged this year, with American sales at an all-time high. People in China and Europe are snapping up EVs in large numbers as well.
Electric vehicles — which are better for the planet than gas and diesel-powered cars when they run on renewable energy sources — are key to decarbonizing road transport, which is responsible for around one-sixth of planet-heating pollution globally, according to the International Energy Agency.
Electric vehicles accounted for about 8% of all new vehicles sales in the US during the first half of 2023, according to the report. In China, EVs accounted for 19% of all vehicle sales, and worldwide, they made up 15% of new passenger vehicle sales.
EV sales in Europe were up 47% in the first nine months of 2023, according to data from the European Automobile Manufacturers Association (EAMA). However, car dealers have warned that sales are dropping off as consumers wait for cheaper models, expected in two to three years’ time.
In order to make your EV green-energy approved, you’ll need to charge it using a renewable energy source. Solar panels are one way to accomplish that.
Charging your electric car at home will only increase your electric usage unless you add another renewable energy source, such as solar panels, to offset it.
For the eco-conscious EV driver, an electric vehicle is only as clean and green as the source of electricity charging its battery.
That’s because EVs plugged into the grid can either be powered by “dirty” sources such as fossil fuels such as coal, or from “clean” renewable energy that comes from sources such as solar, hydro or wind power. With many utilities, it’s likely to be a mix of renewables and fossil fuels. The best way to ensure your EV is actually powered by renewable energy is to connect your home’s EV charger to a solar energy system or use a public charger also sourced by solar panels.
Forget the statistics, it’s in plain sight and we can’t ignore it. EV charging stations are becoming the norm, automakers are making headlines as they invest in new EV technology, and rooftop solar panels are also becoming commonplace to see.
Even with the upswing in EVs and home solar systems, switching from a combustion car to an electric vehicle, however, can be a complicated decision with considerations conventional car drivers don’t have to worry about, like installing a charger in your garage. Adding solar panels to the equation adds even more layers of complexity to an already significant investment.
Here’s what you need to know about powering your home and EV with solar panels and how many you’ll need if you do.
Why use solar panels to charge an electric vehicle (EV)?
There are some less obvious benefits to home solar charging in addition to watching free, clean electrons pulled from the sky streaming into your car’s battery.
Most home EV chargers treat your car like any other appliance that needs to be plugged in and charged overnight. Actually, it’s more like a quite needy appliance that requires a particular current (DC) and lots of it as quickly as possible, which can mean operating at high voltage.
All of this increases strain on the grid and can add a load to your home’s electrical system, especially if your wiring is older or in need of upgrading. In the worst cases of neglect or poor electrical work, it can even be dangerous.
Using solar panels to charge an EV actually streamlines the charging process because both systems speak the same electrical language, in a way.
As Wyldon Fishman, founder of the New York Solar Energy Society, explained, solar panels and electric vehicles both operate with direct current (DC), meaning there’s no need to install an inverter between your panels and EV, although a charge controller is still imperative to have in the circuit. DC can also run at lower, safer voltages.
Relying on solar panels rather than the grid to charge your electric vehicle also means not having to worry about being stuck at home with a dead battery if the power goes out, especially if you opt to pair your panels with a battery or other solar storage.
A home’s energy set up could consist of solar panels, battery storage, inverter and an EV charger. Depending on the consumption, size, efficiency and how many panels you get, this equipment could accommodate all or some of this home energy production. – Getty
How much energy is needed to charge your EV at home?
First, consider your goals for your solar charging system. Do you want to charge your car using your solar panels, and will you primarily be charging overnight? If so, you’re going to need to install a battery or other storage system.
In most cases, you’re likely to have a solar system that’s hooked into the grid as well as your home, perhaps with a connected battery for emergency backup, or not.
If this is your scenario, it could be helpful to know how much of your existing solar output the rest of your home is consuming. If you never pay a utility bill or your utility bill is primarily for nighttime or cloudy days (when your solar panels aren’t at work), this means your existing solar system is probably producing more than you need and the extra is being fed into the grid or a battery or both. Some of this excess energy could be used to charge your EV, meaning you will need fewer solar panels to drive a fully solar-powered car.
Once you’ve got an idea of whether you’re running a solar surplus, the next step is determining how much additional demand an EV will add to your system.
How many solar panels will I need to charge just my EV?
First, consider how much you typically drive in a day. Put simply, the more you drive, the more wattage you’re likely to need in panels.
Here’s the steps to figuring out how your average daily energy needs to power an EV.
Step 1. Determine how many kilowatt-hours your EV uses per mile. The EPA and US Department of Energy’s fueleconomy.gov site lists the estimated efficiency of all electric cars in kWh per 100 miles; simply divide by 100 for a per-mile estimate.
Step 2. Multiply your EV’s kWh/mi by the number of miles you anticipate you drive on an average day. (You can get your average daily miles by observing your driving habits for a few days or by dividing your annual observed mileage by 365). This gets you the total number of kilowatt-hours you’ll need to produce to power your daily driving.
Step 3. You can then divide the EVs needed kilowatt-hours by the number of peak sun hours you can expect to receive at your location each day.
Step 4. The final figure should give you the size of your ideal EV-charging solar array in kilowatts.
Step 1. According to fueleconomy.gov, it averages 24 kWh/100 mi or 0.24 kWh/mi.
Step 2. We’ll also use the EPA’s average mileage estimate of 15,000 annual miles, which works out to around 41 miles per day.
Step 3. 0.24 kWh/mi x 41 miles = 9.86 kWh daily power EV usage
Step 4. 9.86 kWh / 4 peak sun hours = 2.4 kW (This is how much solar energy in kW you will need to charge your EV).
Step 5. We will use a solar panel wattage of 410W, such as the Q.PEAK Duo Black from Qcells, to calculate the number of panels needed for the Hyundai Ioniq 6. Convert the 410W to kilowatts by dividing by 1,000 (0.41 kW).
Step 6. EV production needed to charge the Hyundai Ioniq 6 (in kWh per day) / energy needed per Q.PEAK Qcells solar panel) = number of solar panels needed. 2.4 kW / 0.41 kW = 5.85 solar panels
In this example, six Qcells solar panels are needed to accommodate the energy needs of the Hyundai Ioniq 6 with average driving habits. Six Qcells solar panels don’t accommodate the rest of the home’s energy consumption.
Meanwhile, at the other extreme, dropping the Ford F-150 Lightning‘s 48 kWh/100 mi into the same formula yields a daily energy use of 19.68 kWh and a 4.9 kW solar requirement, doubling the Qcells solar panels needed to 12 panels.
If that’s too much math, Fishman simply recommends putting around eight to 12 solar modules on a canopy that you can use as a solar carport.
“It’s about 2.5 kilowatts that you need for a canopy. You might go a little more, but that’s all you need,” Fishman said.
We’ve seen others in the industry put the figure at closer to 3 kW, but if you’re unsure, you can run through all the math for your situation.
How many solar panels will I need to power my whole home?
This basically comes down to figuring out your home’s total energy needs and then designing a solar array that can meet those needs.
There’s a lot of things to consider to determine both sides of this equation, and CNET goes into further detail on the subject here. Adding EV chargers to your home simply means adding more energy use to both sides of the equation.
Most reputable solar companies will help you work out your energy needs and propose a solution that they will surely be willing to install for you. But doing the math on your own as well can help you make the most informed choice when it comes to picking an installer and assisting in designing a system that meets your needs best.
Don’t forget that there are other things you might want to do before even beginning to consider solar for your home. Making energy efficiency improvements can go a long way toward shrinking your overall needs and thereby shrinking the size of the solar system you require.
Is it worth it to add more solar panels to accommodate an EV?
Adding more panels to your existing solar system or to one that you’re planning is one way to power all your home’s energy needs, including your EV. But it isn’t necessarily the only way to charge your EV. You can also build a stand-alone off-grid system that’s dedicated to just your car.
Fishman recommends building a carport topped with solar panels at just the right tilt to get a good amount of sun on average, based on your location on the globe.
“A carport is fixed at latitude,” she explained. “So if you’re at 42 degrees above the Equator, then your tilt for your solar modules is 42 degrees.”
Which comes first: A solar panel or EV purchase?
If you’re dedicated to renewable energy and kicking fossil fuels to the curb, it makes sense to have your solar system all setup before you spring for the EV so you never have to worry about charging your car from dirtier energy sources that mix with renewables on the grid.
But the reality for many people will be that an EV and home solar energy are two very costly investments. A car or EV tends to be a personal purchase that we spend a lot of time in, whereas energy is a readily available commodity that we tend to think about less. So it wouldn’t be surprising for people to prioritize a flashy new EV over adding solar panels to a home that already has access to electricity via the grid.
Ultimately, it comes down to your priorities and your situation. Maybe your utility is good about incorporating solar into its energy mix via its own solar farm systems, renewable energy credits or offering a community solar program. If so, you might have fewer qualms with plugging in your car at night, no matter how many panels are on the roof.
