Get more people on the solar train
JAMAICA HAS set a target to cut carbon emissions by 25 per cent by 2030. It is also committed to securing about half of its energy requirements from renewable sources by 2030, all of this with the full recognition that countries must manage their way out of the impending climate catastrophe which has been predicted.
If we needed any reminder of the intensity of erratic weather systems brought on by climate change, we got a good one last weekend when a system which passed by Jamaica created damage to the island’s infrastructure, estimated at J$800m
Building resilience to climate change is an imperative facing all nations, and particularly small island states like Jamaica. There is every indication that these weather events are going to become more frequent and more intense in the future.
Jamaica has traditionally relied heavily on fossil fuels to power industry and domestic demand for energy. There is now, however, a commitment to increase renewable energy demand by moving from fossil fuel to cleaner sources such as solar and wind. With the predictions that temperatures will see a dramatic increase, solar energy is looking more and more like an attractive option.
On paper, Jamaica, with the help of several donors, looks like it is developing a robust climate action plan, with projects like mangrove restoration, tree planting, erecting solar panels at hospitals and installing solar street lights, in progress. So, while work has begun we ask the question,”Is it enough?”
SUBSTANTIAL INITIAL OUTLAY
Though costs have been declining, the initial outlay for installing a solar system is substantial. However, businesses and homeowners who have undertaken these projects look at their electricity bills and praise the benefits of generating energy from the sun to run water heaters, power lights, refrigerators and air conditioning units, at a fraction of the cost.
The system works with sunlight, so persons who install panels may need specially designed lithium-ion batteries to store power. We have heard the consistent pleas of the leadership of the alternative energy sector and we have joined the chorus. So we, too, are disappointed that Government, through its energy review committee, continues to ignore their voices.
Charging General Consumption Tax (GCT) on these batteries sounds like a bad-faith action by the Government. People with high net worth may be able to write off these costs and accelerate their return on investment, but, for thousands of households, this is pushing the idea of investing in solar far out of their reach. These are the folks who have limited access to finance for adaptation and resilience, and they need to be part of the solution.
In fact, we believe Government ought to be offering incentives to encourage more people to install solar panels. The encouragement could be in the form of rebates, or tax benefits. These incentives should continue to be available until a sizeable portion of the population has solar panels. In some areas, persons who install these panels are offered solar renewable energy certificates for the amount of electricity produced by the panels, and utility companies buy these certificates to be compliant with renewable energy requirements.
This may be the time for financial institutions to step in and create new mechanisms to support persons wishing to install alternative energy systems. Industry players have criticised banks for high interest rates and a cumbersome approval process.
As economies slowly emerge from the COVID-19 pandemic, there is immense pressure on everyone’s budget. The experts suggest that it is time to build back better by incorporating climate-resilience measures into the recovery efforts.
Government needs to demonstrate by its action that it is really serious about finding sustainable solutions to fulfil its climate-change commitments. Easing GCT on these technologically advanced lithium-ion batteries is a good starting point.