In light of the ever
increasing electricity costs investing in renewable energy is the best option
to get yourself independent and stop wasting money.
Everything costs money. So
don't ever think that energy from the sun is free "full stop".
Although energy from the sun is free, capturing that energy has a cost to it.
Times gone by the technology used to harness energy from the sun or wind was
costly, but mass production and a reasonable demand has dropped the market price
for most of the renewable technology equipment.
One way to prepare for the
future is to save. I must say my family has a simple "savings
account" for special events (and we are expecting a surprise when next we
check this "account"). A matter of fact, when we impatiently cut the savings pan for J$5, J$10 and J$20 coins in early 2014 we joyfully counted out approximately J$28,000. Another way to get funds to install solar power equipment in Jamaica, is through the various institutions offering loans
for implementing renewable technology.
 | |
| My Family's savings pan |
First let me talk about saving. My family's savings account isn't with
a bank but at our home we save coins we get as change from the shops, stores,
supermarkets and public transportation. We even collect coins we find on the
ground (one man's trash is another man's treasure). This type of saving is for
those who find it hard to get disposable income from their salary. I must tell
you though, the "solarizing" of my home was from sacrificing my
parents' salary. My father just saw the opportunity and bought the equipment
then watched and waited for our savings in avoided costs to JPS. And the
savings did come. Not to mention the awesome feeling we felt when a power
outage came and we were the only house in our section of the community with
electricity not using a generator.
Now back to financing your
home's renewable energy project: you can target a savings amount of
approximately JA$250,000 to start powering an average house and removing it
from utility. Do it yourself (DIY) persons will find it the least expensive to
install a PV system or residential wind turbine. For the DIY a start-up system,
to take even a reasonable portion of the house off utility power can cost as
low as JA$150,000. Even if you won't install it yourself, you can source the
individual equipment as time go a long and have a certified electrician install
it for you.
Banks can finance an energy project but the
most common financing for these types of projects in Jamaica is through a loan
from NHT. The NHT
introduced two loan facilities for renewable energy technologies: the Solar
Water Heater Loan in 2006 and the Solar Panel Loan in 2008. These loans provide
funds for NHT contributors to install solar water heaters and solar
photovoltaic (PV) panels. Solar water heater loans of up to JMD$250,000 are
available at an average rate of 3% with a repayment period of up to 5 years. PV
loans of up to JMD$1.5 million are available at 2-8% with a repayment period of
up to 15 years. These interest rates and repayment periods are the most
favourable available in Jamaica, with commercial loan rates generally being
above 10.5%. However, with such favourable interest rates, the Ministry of Science,
Technology, Energy and Mining website’s article, ‘The Energy Initiative and the
NHT’ stated that uptake of these loans has been low. To add, only 10 PV loans
were disbursed between 2006 and 2010.
To
this end, the Development Bank of Jamaica (DBJ) recently instituted a JMD $100
million dollar fund for residential energy loans. This facility allows
homeowners to borrow up to $2 million to finance renewable energy solutions
such as small wind turbines, solar panels, or biogas digesters.
In the U.S generous state and
federal government incentives are used to encourage home owners to "go
roof top solar". Some companies like NRG energy, based in Princeton, New
Jersey have created a unit to sell systems to businesses and home owners. JPS
(in Jamaica), has signed a deal to do a similar thing. And even now there is a
brewing battle between utility companies and “roof top solar” companies as
residential solar panel installation increases in the US.
Yale Environment 360, ‘With
Rooftop Solar on Rise, U.S. Utilities Are Striking Back’, by Marc Gunther
reported that nearly 90,000 businesses and homeowners installed rooftop solar
projects totalling about 1.15 gigawatts in 2012. I only hope Jamaica can see an
increase like that soon. That would mean more good for the ‘small man’ and more
worries for JPS.
References
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