Solar: A Win-Win for Bankers and Developers

April 17, 2025 jrobinson

Powering a Greener Future

In a time where sustainability is no longer just an option but a necessity, the real estate and financial sectors are uniquely positioned to lead the charge toward a cleaner, more economically sound future.

The global shift toward renewable energy is undeniable and solar energy stands at the forefront of this transformation. The benefits are clear —lower energy costs, reduced carbon footprints, and energy independence for homeowners and businesses alike.

Unlocking the full potential of solar integration requires developers and financial institutions to work hand-in-hand, and offer attractive, flexible and secure financing solutions that treat solar as the high-yield investment that it is.

The Synergy of Bankers and Developers

Solar energy systems are tangible, low-risk assets offering homeowners significant savings, developers a competitive edge and banks the security of their investment.

According to a 2024 U.S. study, homes equipped with solar systems sold for an average of 6.8% more than comparable homes without solar and spent less time on the market.

This premium reflects the growing demand for energy-efficient homes and makes a compelling case for developers to include solar in their projects.

Replacing monthly utility bills with solar loan payments of a similar or lower amount allows homeowners to reduce living costs without compromising their lifestyle or financial stability.

With one less major bill to worry about, the likelihood of loan defaults drops significantly.

Current data shows that the default rate for green energy loans is less than 1% making homes with installed solar systems a safe bet for banks.

Developers must design and build homes that are solar-ready or solar-integrated and banks need to create green loan products that match this forward-thinking approach.

Debunking Risk Aversion

Solar panels are income-generating assets. A properly installed solar system can save homeowners thousands of dollars over its lifetime and increase property value.

Homeowners can also generate additional savings by selling back any surplus energy to the grid through a Net Billing license.

Modern solar systems that are data-engineered and include online monitoring, extended warranties, and long equipment lifespan are ideal collateral for financing.

Systems that are GER-certified, professionally installed, and maintained through structured programs reduce lending risk and ensure optimal system performance.

These features allow solar systems to function as secure collateral, much like a home or vehicle, which reduces risk for banks and enables competitive loan rates.

In the rare event of a loan default, the modern design and warranties of solar systems enable easy resale to schools, nonprofits, or existing bank customers.

Solar systems typically have a payback period of 4 to 6 years. For many PAYE employed who are leveraging the new solar tax credit, the payback period shortens.

Banks can further reduce risk by offering incentives to borrowers who apply their tax refunds to their loan balance.

Financing a Greener Future

Banks need to offer financing models that are just as innovative as the solar systems themselves:

Incorporate solar into mortgages – Include solar systems in initial mortgage financing. Spreading the cost over a longer term makes systems more affordable and reduces default risk.
Use solar systems as collateral – Given their high quality equipment, lifespan, warranties, and online monitoring capabilities, modern solar systems can serve as loan collateral. This approach protects the homeowner’s equity and reduces risk for lenders.
Offer competitive interest rates – Secured loans, using the solar system as collateral, should have interest rates below the 15% – 19% that is currently on the local lending market. Lower rates encourage adoption and reduce defaults.
Bundle EV and solar loans – Reduced interest rates for loans that combine a solar system with the purchase of an electrical vehicle (EV) is a dual investment that amplifies savings for homeowners. Solar energy can power both homes and vehicles further reducing monthly expenses and default risks.
Leverage Net Billing for non primary residences – Require Net Billing licenses for non-primary residences to enhance their savings and reduce the likelihood of loan defaults.
Mandate system maintenance – Require active maintenance as a clause in insurance coverage to ensure solar systems operate at optimal levels and protect the loan investment.

The National Housing Trust (NHT) is leading the way with revamped energy loan offerings like the Smart Energy Loan (up to J$2.5M) and Home Improvement Loan (up to J$5M) per contributor as of July 2024.

Banks should follow suit by offering secured solar financing backed by quality systems, long warranties and a maintenance program rather than relying on home liens

Developers, in turn, need access to financing with favorable terms so as to integrate solar into their designs without sacrificing profitability.

The Development Bank of Jamaica (DBJ) through its Credit Enhancement Facility (CEF), provides banks with funds for green energy loans for commercial clients where solar systems serve as collateral. Developers can therefore benefit from DBJ-backed competitive green financing.

Designing for the present

Developers can mainstream solar energy by incorporating it into their designs from the outset. Key design considerations include below:

Roof Space Optimization – Ensure adequate, unshaded roof space for solar panels.
Proximity to Infrastructure – Position main breaker panels close to designated solar equipment spaces for efficient installation.
Battery Storage Readiness – Allocate dedicated indoor spaces for battery equipment to support energy storage.
Pre-Wired Solar Circuits – Install breakers specifically for solar systems
Solar Expertise and Aftercare Services – Collaborate with certified solar providers for installation and maintenance to ensure long-term system performance and insurability.

Integrating these features increases a property’s appeal and sale value, incentivizing more developers to embrace solar-ready designs.

A Win for All

Solar energy is a transformative investment with proven returns for homeowners, developers, and banks.

Banks can reimagine their lending practices, recognize the real value of solar systems and attract new customers with competitive green energy loans.

Developers can integrate solar systems into their offerings to enhance property value, accelerate sales, and meet growing consumer demand.

With low default rates, expanding consumer interest, and financial support from institutions like the DBJ, there has never been a better time for banks and developers to align and power a greener future together.

Deidre Wedderburn is the Client Relations Manager at SolarBuzz, dedicated to building long-term partnerships and delivering a top-tier client experience (deidre@solarbuzzjamaica.com).

Alternative Energy Climate Climate Change Energy Saving Environment Government News Renewable Energy

CSEF 2017: Call To Action For CARICOM Energy Players

February 3, 2017 Webmaster

WITH ECONOMIES under threat due to climate change and prevailing high production costs, the recent Caribbean Sustainable Energy Forum (CSEF) served as a call to urgent action to realise energy efficiency and energy sustainability within CARICOM.

Kim Osborne of the Executive Secretariat for Integral Development at the Organisation of American States, said it is past time that talk be translated into action.

“There is always the challenge of maintaining a healthy balance between dialogue and implementation. Several studies and reports have noted that our region faces an ‘implementation deficit’, but I would venture to say that the region also suffers from a ‘dialogue surplus’,” she noted.

She was addressing participants at the Caribbean Sustainable Energy Forum (CSEF), held in The Bahamas last week.

“There is a serious mismatch between meetings and results in our region. My point here is twofold: that dialogue is not an end to itself, and that dialogue that does not lead to action and to results is meaningless,” Osborne added.

At the same time, she said that energy must not be looked at in isolation, but rather in the context of sustainable development.

“In the normal course of things, energy is not provided in a vacuum. It impacts and is impacted by several factors, such as poverty, water availability, disaster risk, climate change, health, education and human resource development, human rights, and coastal and marine management,” Osborne said.

“I am proposing that to the fullest extent possible, an integrated approach should be adopted towards the goal of sustainable energy management,” she added.

For his part, Dr Devon Gardner, programme manager for energy with the CARICOM Secretariat, emphasised three things – partnership, integration and action.

“The partnerships are not just for the CSEF, but with the World Bank and the United States Government, we are able to implement the Caribbean Sustainable Energy Road Map ad Strategy (C-SERMS) platform … . Because of partnerships, we have been able to work with the member states,” he said.

UNITY MAKES SENSE

On integration, he noted: “The CARICOM secretariat is really there to serve the member states. We do what the member states require to get the job done. The CARICOM is a group of countries within the Caribbean that we want to do some things together because it makes sense for us to work together to achieve mutual and shared objectives. And the role of the secretariat is to help the member states to realise this objective.”

Added Gardner: “We believe that all that CARICOM desires – from economic development to climate resilience to social resilience to security – is underpinned by having a strong energy sector … . We see energy as a critical part of the regional integration tool.”

In the end, Gardner said there was no question of realising C-SERMS energy targets that include 47 per cent renewable power capacity by 2027 without urgent action.

A number of regional leaders – among them Dr Regilio Dodson, Minister of Natural Resources in Suriname – have noted their support for an integrated and unified approach to the energy efficiency and sustainability in the region.

“We should work together … . We have to actively promote success stories … and learn from each other and go together and try to determine what is for our region the best way forward,” he said.

“If we work together to get this going and get the cooperation between CARICOM countries going, then we will have our energy security in our own hands, ” he added.

Among the topics explored over the three days of discussions at CSEF 2017 were ‘The CARICOM Energy Policy Road Map and Strategy: Shifting the C-SERMS from Concept to Action’; ‘The Regulator Within the Integrated Resource Planning Process’; and ‘The CARICOM Energy Transition: Lessons from the Last Five Years’.

The forum also saw the meeting of regional working groups on key thematic areas, including information and knowledge management, finance, capacity building and research, as well as policy and regulations.

Gleaner

Climate Change Confrence Government News

Patterson calls for political awareness of climate change issues

December 4, 2015 Webmaster

PATTERSON… we have great cause to be concerned about the effects of climate change

NASSAU, Bahamas (CMC) — Former Jamaican Prime Minister P J Patterson says there is need for strong political awareness of the relevant issues related climate change and disaster risk considerations.

Patterson, who spoke at the opening of the 9th Caribbean Conference on Comprehensive Disaster Management earlier this week, encouraged politicians to foster close collaboration with regional agencies with mandates regarding climate change.

“Political awareness and support are key in order to ensure full support at the highest level of Governments for appropriate allocation of national funds to address these issues.

According to Patterson, the region is fully aware of the challenges linked to climate change, as faced by small island developing states .

“Our regional Heads of Government and our people are well-acquainted, many of us through adverse experiences, with the challenges our countries face as small island developing states in a highly hazard prone region of the world. At times, it seems that the rich natural endowments with which we have been blessed are borne by curses that serve to impede our advancement.”

The former prime minister stressed the importance of a “consolidated approach and collective action to protect our environment to avert disasters where we can, or at least, to mitigate their effects, and at the same time, to spur sustainable development”.

He added that the region’s approach to the achievement of sustainable development globally, regionally and nationally must be through integrated efforts to achieve resilience.

“The building of a resilient nation has to begin and proceed on the base of community resilience. We can learn a great deal from the Cuban model, which has been tested and proven.”

Concerning national policies, Patterson said climate change measures must be integrated.

“This must resonate with us in the Caribbean. We have great cause to be concerned about the effects of climate change; rising sea levels which threaten our coastal developments, and devastate our agricultural production; more severe tropical storms which can eradicate years of hard work in a few short hours; and proliferation of tropical diseases.”

He added that the disasters constitute a “clear and present danger to our lives and well being. It could wipe out the tourism product entirely and destroy all our prospects for economic growth”.

In making reference to the Paris conference, Patterson said the outcome is very important to the region “as we are disproportionately vulnerable to the effects of climate change. The countries represented here are in the main small island states. While we fall within the same category of landlocked and developed countries which are also most disadvantaged, I believe the Caribbean and the small Pacific Islands should be singled out for very special and urgent attention by the Developed World and the International Institutions as is now the accepted case for Africa.”

Patterson, at the same time, said officials need to broaden their outreach for the next conference to include, possibly as associates in the first instance, all nations which are part of the geographic space — Guadeloupe, Martinique, Curacao, St Maarten, Cuba, the Dominican Republic and Puerto Rico.

“Natural disasters, when they come, do not seem to respect national borders. They spread their fury, regardless of flags. In avoiding, moderating and responding to disasters, we need a more inclusive approach to secure the best deployment of personnel, technology and equipment,” he said.

The Observer

Alternative Energy Government LNG News

Increase use of alternative energy sources

October 4, 2012 jrobinson

MONTEGO BAY, St James – TOURISM and Entertainment Minister Wykeham McNeill has challenged stakeholders in the sector to augment alternative energy supply sources and expand the use of supporting energy in a collaborative effort to keep the industry buoyant.

“As a sector, I am encouraging all our tourism partners to do what you can incrementally and over time to expand your energy options and increase your use of sustainable energy,” McNeill charged.

Sandals Resorts International (SRI) Director of Administrator and Business Processes, Wayne Cummings (left) and Tourism Minister Wykeham McNeill are locked in discussion following World Tourism Day Luncheon held at Sandals Montego Hotel, last week. (Photo: Kenroy Pringle)

“I want to encourage our tourism sector partners to seriously explore the use of alternative and sustainable energy sources, in our collective efforts towards the future sustainability of the tourism industry“.

Meanwhile, former President of the Jamaica Hotel and Tourist Association (JHTA) Wayne Cummings noted that for a downward trend in energy costs to be realised, an energy policy would have to be written, “agreed to, and we all stick to it”.

“So we need to figure it out and make it known to everybody,” Cummings argued.

Cummings, who is also the Sandals Resorts International (SRI) director of administrator and business processes, was speaking during a World Tourism Day Luncheon held at the Sandals Montego Hotel, where McNeill, Junior Minister in the Ministry of Tourism and Entertainment Damion Crawford and other tourism officials, were in attendance.

Prior to the luncheon, the party toured a villa at the resort in which suites are fully powered by solar technology, allowing for the harnessing and storing of energy to power sections of the resort’s operation, through a pilot project undertaken jointly with Panasonic.

Paul Grey, head of ATL Energy and Engineering, said with the US$100,000 investment, savings of up to US$120,000 could be realised within a decade.

In the meantime, conceding that the cost of establishing alternative energy sources will be costly at the beginning, the tourism and entertainment minister also underscored the need to retrofit, among other solutions.

“We have entities of varying sizes and I realise the initial costs involved may seem daunting, but it may be that you need to retrofit your bulbs, install solar panels, implement waste water management systems plus a myriad of other solutions,” McNeill noted.

He further noted that energy strategies should form a major plank of each entity’s Environmental Management Policy.

“So today (Thursday) is a good time to once again seriously consider plans to implement energy solutions in a manageable form that will allow you to monitor the performance and provide real readings on the effect on your bottom line,” McNeill remarked.

“Let each and every one of us play our part in ‘Powering Sustainable Development‘ to the benefit of our sector, our society and nation at large”.

JPS News

Concerns Raised Over JPS LNG Plant

May 21, 2012 jrobinson

At least one expert has serious concerns about the Jamaica Public Service Company Ltd’s (JPS) plans to build the country’s first liquefied natural gas (LNG)-fired plant at a cost of J$52 billion in St Catherine. The 360-megawatt plant is touted to reduce the country’s electricity bill by 30 per cent.

Denzil Williams, head of the Department of Management Studies at the University of the West Indies, Mona campus, said he was not convinced this was the right move because if it backfires, it could cost Jamaica dearly.

Serious issues to consider

“If we get LNG going and if we build this plant, then we can see some savings in our electricity bill but, when you go into the details of it, you recognise that it is not just about building the plant, but there are some more serious issues we have to consider,” he noted.

Speaking during a public forum on ‘The Budget, The Debt, The Future’ hosted by Jamaicans United for Sustainable Development at the Department of Management Studies at the University of the West Indies last Thursday, Williams said there were some critical questions that needed to be considered.

“What if LNG does not come to Jamaica? What if there is a disruption in the supply of LNG? What is the backup fuel if LNG fails?” he asked.

He said at this stage, there was no clear indication if these things were considered by the relevant authorities and if an effective backup plan was in place.

“If we do not secure that source of LNG and get it over on this part of the shores and they have to use that combine cycle gas turbine plant to power electricity later on, we will be in a more dangerous position than before. Because we will be using a much more expensive backup fuel, as the combine cycle gas turbines can only use automotive diesel oil,” said Williams.

He said the Office of Utilities Regulation should publicly address these concerns.

http://jamaica-gleaner.com/gleaner/20120521/lead/lead4.html

News

MSME Alliance lobbies PM for support on credit, energy

September 13, 2010 jrobinson

Saying the issue was as fundamental as their survival, a group of micro and small businesses has collected close to 1,000 signatures on a petition handed to Prime Minister (PM) Bruce Golding pleading for support of the sector.

The MSME Alliance’s list of concerns runs the gamut of the expensive cost of doing business, and how to mitigate impact on companies’ bottom line.

Its list was mostly skewed towards access to credit and taming energy overheads, including a proposal to implement an energy subsidy financed from dividend payments to the Government on its one-fifth equity stake in the Jamaica Public Service Company (JPS).

The proposal goes even further to suggest that Jamaica “assume ownership of transmission lines”, which are currently the property of the JPS. The utility is owned 40 per cent by Marubeni of Japan, 40 per cent by Taqa of the United Arab Emirates, 19.9 per cent by the Government of Jamaica through the accountant general and the Development Bank of Jamaica, while 0.1 per cent is held by individuals.

But the group is also seeking more duty concessions, the establishment of an agency that can sell “collateral cover” to micro, small and medium-sized enterprises (MSMEs), and a more palatable credit policy that makes it easier for them to access investment capital.

The alliance – whose membership covers 35 business associations that represent some 300,000 businesses – staged a mock funeral for businesses in the MSME sector in August, which it dubbed ‘Bawl Out’, to bring public attention to the concerns.

list of concerns

From that event, and subsequent feedback from businesses, it has put together a 10-point list of concerns, which the group has asked Golding to give some consideration to before returning to the public-private sector Partnership for Transformation Talks.

They met with the PM on September 2, according to a release from the group.

“These signatures represent only a small fraction of the support we have received since our Bawl Out in Portmore Pines,” said Anthony Charley, first vice-president of the MSME Alliance.

“Our members are fighting for survival and we will continue to bawl out until we feel the support from the Government.”

The 10-point list, including sub-points – dubbed by the alliance as a large-scale national risk-management programme for MSMEs