Against the background of rising oil prices, the Jamaican government is establishing a fund to promote energy saving and the development of alternative sources as part of a National Energy Policy.
The PetroCaribe concessionary oil agreement, signed recently with Venezuela, is being considered as the source of a possible US$10 million (J$620 million) capital injection for the energy fund. The National Housing Trust is also being asked to provide loans for domestic installation of solar water heaters and other energy saving devices.
“Almost every country that has a successful energy efficiency programme provides tax incentive subsidies and low cost financing,” said head of the Petroleum Corporation of Jamaica’s Energy Efficiency Unit Dr. Cezley Sampson.
Inflation in Jamaica, said Dr, Sampson, is caused largely by oil price rises, which the World Bank has identified as the major obstacle in Jamaica meeting its medium term economic targets.
Further removal of GCT and import duties on energy saving devices is being considered by government added Dr. Sampson. Last year solar water heaters and photovoltaic (solar power) devices were exempted from GCT and import duty.
“Recent removal of the tax has brought the installed cost of a residential solar water heater (size 80 to 100 gallon) down from J$120,000 to about J$75,000, with possible savings of about J$2,700 per month or a payback of just over two years,” said Dr. Sampson.
Meanwhile, the Jamaica Manufacturers’ Association is set to lobby Minister of Finance Dr. Omar Davies to introduce tax credits for energy audits and GCT and import duty exemption for energy saving devices.
JMA Vice-President Raymond Miles, who raised the matter, told The Gleaner, he did so because small and medium-sized businesses were unable to afford energy audits and energy saving measures.
“I have done an informal survey of our members and they cannot afford audits despite the high interest. It is a serious national issue; we can use audits to reduce our energy bills, price rises and help our foreign exchange reserves,” said Mr. Miles.
Joseph Williams, director of Energy Services Solutions, which conducts audits, admitted they could be expensive ranging from $15,000 to $500,000 depending on their comprehensives. But he maintained, audits were essential.
“They are critical because you need to take informed decisions when purchasing what is expensive (energy-saving) equipment. You need to assess all of your uses and know how effective your actions will be,” he added.
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