A surge in Chinese car brands is transforming Jamaica’s automotive market. While Japanese, European, and American manufacturers have long dominated the market, and still dominate, the emergence of brands such as BYD, GWM (Haval), BAIC, Jetour, MG, and Chang’an is reshaping consumer preferences. Chinese brands are disrupting the market with competitive pricing, cutting edge technology, and features that rival or surpass those of established brands. The growth of Chinese vehicles in Jamaica reflects a global trend, with China increasingly dominating the automotive industry. This report delves into the factors driving this shift and examines how Chinese automakers are making inroads into a market once sceptical of their quality and reliability.

 

Bella Castle International Ltd, a Dominican Republic-based automobile distributor that sells Honda and Changan cars in its home country, opened its newest showroom in Kingston on December 4, 2024 to sell Changan, a Chinese car marque. Changan is the sixth Chinese car brand to enter the Jamaican market, traditionally dominated by Japanese and European marques, and more recently, Korean marques. However, in recent years, Chinese cars, once met with scepticism over quality, are increasingly appearing on Jamaican roads.

“I think that the acceptance of Chinese cars comes from the open-mindedness of new customers, younger clients that are less traditional about only Japanese or Korean car brands,” Praxedes Castillo Bellapart, general manager of Bella Castle Group, said in a December interview with the Jamaica Observer. He has witnessed younger generations choose Chinese brands after realising they offer technology and innovation.

“Everyone aspires to have a premium vehicle, and [they] get to have it at a very good price with a Chinese brand,” Bellapart said. “So, that’s what we’re doing here. We’re giving luxury at an economic price to all the Jamaican people.”

Andrew Jackson, CEO of Jetcon Corporation, the distributor of BAIC cars since 2023, faced scepticism initially. However, he has seen people adjust their behaviour towards the cars.

“If you compare the cars now with, say, the Chery QQ from 10 years ago, the fit and finish of these cars are far superior,” Jackson said. “In many cases, the styling of these cars is ahead of the Japanese and Korean cars — the modern type of styling. So the Chinese have really jumped ahead of the game — specially when it comes to styling. They are up there when it comes to quality,” Jackson pointed out.

BAIC is produced by Chinese State-owned automobile manufacturer Beijing Automotive Group Co, Ltd. Its acronym relates to its predecessor, Beijing Automotive Industry Corporation.

Chinese car brands have made significant inroads in Jamaica over the past three years. While Chinese truck brands such as Shacman, Sinotuk and Foton, had a presence, it wasn’t until 2021 that Chinese car brands started gaining traction. That’s when Stewart’s Automotive Group introduced Great Wall Motors’ Haval marque.

Titanya Clarke, brand sales manager for GWM Haval at Stewart’s Auto Group, said the marque was introduced in 2021 and sales began in 2022, ahead of its official May 2023 launch.

Clarke said the brand has been well-received by the market. Corporations have also bought its pickup truck line as part of their fleet vehicles.

“One of the things that we used as a strategy is to actually have people experience the vehicles. When you experience a Haval, and how it drives, and what we are offering, you understand why we go by the saying, ‘This is affordable luxury,’ “ she said.

Still, it was pointed out that while Jamaican consumers are warming to Chinese car brands, it is not an easy sell all the time.

Courtney Smith, sales manager for BYD Kingston, is still learning about customers who traditionally bought Japanese and Korean brands like Hondas or Kias. These customers react differently when introduced to a Chinese car brand, Smith said.

Smith, who previously sold Hondas for ATL Automotive Group, noted the difference.

“As a person who used to sell Honda, when a person walks in, nine out of 10 times they know what they want,” he said. “The brand is a household name [so] they’re more picking their colour and looking at specs.”

In contrast, newer brands require more effort to sell.

Yet, Jamaica’s automotive history suggests Chinese car brands are here to stay, with the recent shift being the latest chapter in this evolution. Although the first automobile was independently introduced to Jamaica in 1903, it was the 1960s that marked a pivotal period for the industry, with the country relying on trading partnerships with England and the United States to import popular vehicles.

Family cars like the Morris Oxford and Austin Cambridge, which doubled as taxis, dominated the market. Characterised by rectangular designs, these vehicles contrasted with sleek 1960s sports cars like the Jaguar E-Type. While SUVs were non-existent, station wagons and Land Rovers provided motorists with extra space and four-wheel drive capabilities.

The 1980s saw the introduction of Russian-made Ladas, which coincided with import restrictions. The easing of these restrictions in the 1990s paved the way for a lasting influx of Japanese vehicles, which continues to shape the country’s automotive market today.

However, that dominance is now being challenged by the Chinese car brands across the globe.

In 2008 that country’s automotive industry took the top spot in production, with its factories churning out millions of vehicles annually. As of 2024 it also ranks as the world’s largest automobile market, topping global sales and ownership charts. However, Chinese car makers are facing increasing headwinds from tariffs, particularly from the US and EU, which could potentially disrupt their export-driven growth. The US, for instance, in May 2024 quadrupled tariffs on Chinese electric vehicles from 25 per cent to 100 per cent, while the EU imposed tariffs on Chinese electric vehicles of up to 45.3 per cent in late October 2024.

Chinese automakers have, in response, pivoted in those markets, deciding to export its hybrid cars to Europe for example, to get around the tariffs on full electric models, and have also gone aggressively after new markets in Africa, Asia and Latin America.

“Because the Chinese are having problems to go into North America and Europe, they are pushing even harder to go into other countries. At the end of the day they are still competing with the BMWs and the Toyotas and so on — but maybe not in the primary market but in the Latin America, and the Caribbean, and India, and Africa and so on [instead],” Jackson said, adding that he expects the Chinese brands to eventually find their way into North America and Europe.

From January through October, Chinese companies sold 9.75 million fully electric and hybrid vehicles — an increase of 34 per cent from a year earlier, according to the China Association of Automobile Manufacturers. About one million of those vehicles were exported outside China.

BYD is well positioned as the leader, with a market share of around 35 per cent. In China, its biggest market, BYD sold 2.9 million fully electric and hybrid vehicles in the first 10 months of 2024 — an increase of 35 per cent from a year earlier, according to China Passenger Car Association. Globally, BYD has broken into the top 10 of total vehicles sold, and looks poised to pass Ford Motor and Honda soon.

The company has aggressively expanded overseas. It has built assembly lines in Brazil, Hungary, Thailand and Uzbekistan. It is also looking to put a factory in Mexico, a market where it expects sales to double next year.

Here in Jamaica it is classified as a premium brand and is thus not targeted at the mass market as are value brands such as Honda and Kia, though the prices are comparable, with the technology, most times, in these Chinese brands being superior — a far cry from the days when Chinese-made products were snubbed for being poor quality knock-offs of more popular western brands.

“From what I have seen the legacy brands — Toyotas, Hondas, Fords — they have taken a backseat in giving the public what they want and you have to wait long for changes,” Smith said.

He pointed out that Chinese automakers disrupt Jamaica’s car market by rapidly advancing technology, offering more features at lower prices, and outpacing legacy brands like Toyota and Honda in innovation cycles. Chinese brands like BYD and Haval provide advanced features — such as adaptive cruise control, 360-degree cameras, and cooling seats — as standard, making them more competitive. Unlike traditional automakers that update models every five years, Chinese manufacturers release frequent updates, enhancing technology and efficiency. For instance, BYD’s hybrid cars now achieve ranges of 1,100 km, with newer models already promising 2,000 km. This aggressive strategy challenges competitors like Tesla on pricing and innovation, reshaping consumer expectations across the world and in Jamaica.

Are you ready to accelerate your return on investment in solar energy? The Government of Jamaica has introduced an exciting tax incentive for homeowners, and at SolarBuzz, we’re here to guide you through every step. More than just a regular installer, we pride ourselves on being your trusted expert partner in all things solar.

What’s New?

As of January 1, 2023, individuals who install a solar photovoltaic (PV) system in their primary residence can qualify for a 30% income tax credit, up to a maximum system cost of J$4 million. In other words, you can claim up to J$1.2 million as a tax credit on the purchase and installation costs.

Key Criteria for Eligibility

  • The solar PV system must be installed on or after January 1, 2023 at your primary residence.
  • Sales invoice and property title must be in your name.
  • A Government Electrical Regulator (GER) Inspector Compliance Certificate is required.
  • Income Tax Returns must be filed electronically:
    • Self-employed: Submit Form S04
    • Employed (PAYE): Submit Form IT05

The Tax Computation section has been updated to include the Residential Solar PV System credit. When completing your relevant tax form, look for the new Schedule 9 hyperlink for the new residential solar tax credit computation in the following section:

  • Section E (for employed individuals)
  • Section F (for self-employed individuals)

How to Register for eServices

  1. Visit www.jamaicatax.gov.jm
  2. Click the Client Portal in the top-right corner
  3. Follow the steps to register for eServices

Important Notes

  • You can only apply this credit to 50% of your annual income tax due.
  • The home where the system is installed cannot be used for any income-generating activities.
  • Upgrades are only eligible on systems installed after January 1, 2023
  • Employed individuals get a cash refund; self-employed individuals receive a tax credit to offset their liability.
  • Pensioners/retirees are eligible for tax credit on systems installed during retirement only if their pensionable income exceeds the tax threshold for the year being claimed and all other pensionable allowances (total of 2.2M approximately annually).

Watch the Full Webinar

If you’d like a deep dive into the new tax credit, check out the Tax Administration Jamaica webinar here:
YouTube Webinar: Solar Tax Credit
(Tax Computation skip to: 2:01:01 to 2:07:53 in video below)

Next Steps

  • Current SolarBuzz Clients: Contact us for free guidance, and we will ensure your installation can be passed quickly by the GER.
  • Non-SolarBuzz Clients: We can still help, but there will be an admin fee for our tax guidance, and no guarantee the GER will pass a system we did not install.

We look forward to helping you save on energy costs and unlock new financial benefits in the process!

This post is for informational purposes only and does not constitute tax advice. Please consult with a tax professional for personalised guidance.

 

Sunnova powers more than 50,000 in Puerto Rico through Ernesto

Another inclement weather event, another testament to the utility of virtual power plants!

Sunnova Energy International announced today that it powered more than 54,500 customers in Puerto Rico during and after Tropical Storm Ernesto from August 13 to August 19. During the storm, local utility grids were unable to deliver power to approximately half of the residents on the island; in that seven day span, Sunnova solar + storage customers generated 8.05 GWh of energy.

“Keeping the lights on for over 54,500 Puerto Rican customers who lost grid power this month shows the tremendous value of our solar + storage systems,” said William J. (John) Berger, president and chief executive officer at Sunnova. “Nearly half of the Island was without power after the most recent storm, and at such critical and vulnerable times like this, we had the capability to deliver when the local utilities could not. By powering all of these customers in Puerto Rico, we are demonstrating the true power of solar + storage to protect our customers and their communities, and to live life uninterrupted. Our systems protect homeowners and provide peace of mind with clean, resilient power that comes backed by the best service in the industry.”

Sunnova reports about 98.5% of its SunSafe systems in Puerto Rico were undamaged by Ernesto. Sunnova says it sent technician crews out to repair those that did take a hit, performing repairs just hours after the storm struck.

“Once more, the durability and dependability of Sunnova’s solar + storage systems were battle-tested by another major storm and proved to be an excellent source of reliable electricity,” said Paul Mathews, executive vice president and chief operating officer at Sunnova. “It is unfortunate that so many of our customers have dealt with severe weather this summer, but it’s clear that going through storms with Sunnova service provides customers increased resiliency and reliable off-grid power. We are here for the long haul and as demonstrated with our rapid response, our customers can count on us when it matters most. I couldn’t be more proud of our Service teams and their response in Puerto Rico.”

Sunnova is getting used to making positive headlines in the wake of natural disasters. The company’s solar and storage solutions powered more than 5,500 customers across a four-state region during and after Hurricane Debby from August 5 to August 12. Last month, Sunnova reported similar success after it powered the homes of nearly 3,000 customers in the Houston area during and after Hurricane Beryl, which knocked out power to nearly three million utility customers. When Hurricane Fiona struck Puerto Rico in September 2022, Sunnova said its SunSafe solar + storage systems generated nearly 2 GWh of energy in the first two weeks after the storm. Systems provided a combined 3.4 million hours of backup power for solar + storage customers, with an average of 128 hours of power generated per household.

Sunnova is also collaborating with Tenet Energy to accelerate the adoption of solar energy and electric vehicles, offering exclusive promotions encouraging Sunnova customers to purchase an EV with Tenet’s financing options and Tenet customers to adopt Sunnova’s solar energy systems. By using solar panels to charge electric vehicles, homeowners can achieve significant cost savings that amount to potentially hundreds of dollars annually on their electric bills.

Renewable Energy World

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

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.

Fraser-Pryce withdraws from Switzerland meet

“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

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

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.

 In support of the broad renewable energy target the Andrew Holness-led Administration has slashed import duty on electric vehicles from 30 per cent to 10 per cent, and purchasers of those vehicles will not have to pay licence fees over a five-year period.

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

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

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

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