Bickering over solar energy – Jamaica Observer

THE Jamaica Renewable Energy Association (JREA) is slamming the government for what it describes as an inefficient and non-consultative approach in the way it deals with solar energy users.

The current system requires everyone – including homeowners who generate power only for personal use – to apply for a permit from the Department of Energy, a process that JREA says is impractical.

“The process is cumbersome, slow and expensive. Many people simply don’t apply because there is no benefit for them. I estimate that about 50 percent of renewable energy systems in Jamaica do not bother to apply for the permit. If compliance was meaningful and easy, people would comply,” JREA President Alex Hill said in response to questions from the UN Jamaican observer.

Since 2022, the JREA has raised concerns about the approach to net billing linked to licensing. According to information on the Ministry of Science, Energy, Telecommunications and Transport (MSETT) website, licensing is a five-step process – each with different components – that carries a non-refundable application fee of $19,000, among other fees and charges. It starts with submitting an application that must undergo a “preliminary technical and legal review” by the MSTT before it is accepted for processing.

Hill, who is also director of Iree Solar, was scathing in his assessment of the initiative.

“The net billing process/program in Jamaica continues to operate inefficiently and with total disregard for stakeholder input. “There have been changes to the process, which are materially impacting how the program is managed and how the data is presented to policy makers without any consultation with industry stakeholders,” he said.

For example, he cited recent unexpected changes in certain metrics; changes that he expects will have a domino effect on the sector.

“This will impact how our policyholders estimate the effectiveness and capacity limit of the net billing program as a percentage of total net energy generation in the country. We have also experienced many seasons where only one person could process applications at MSETT. As a result, this increases application processing time and frustrates applicants,” Hill said Sunday observer.

Net billing was introduced in 2022 and has so far deployed nearly 800 systems to 1,200 customers licensed by the Ministry of Energy, according to the Jamaica Public Service Company Limited (JPS).

“These individuals are now net billing customers and receive compensation for the power they send to JPS,” said Winsome Callum, communications director for the utility.

It is unclear why individuals who do not intend to sell power to JPS need to apply, but the MSTT has made clear in its written responses that they must also go through the process. Asked to explain the steps to be taken by persons who do not intend to sell power, the MSTT said information on net billing was available on its website.

The ministry also said that Sunday observer that “Rate 10” residential JPS customers installing a solar photovoltaic system for personal use “must apply for an Auxiliary Connections license” from the MSETT. Up to the time of writing, there was no response to a request to clarify whether that license is in addition to the license linked to net billing, but it did say: “the regulations for auxiliary connections are currently being finalized and will be gazetted recorded as soon as it is completed”.

According to JREA’s Hill, its members have had an equally torrid time trying to comply with those rules.

“There is no additional permit to apply for. A few years ago, an additional license category existed, but this category was arbitrarily removed by MSTT without any consultation or notification to the industry,” he said.

He said the additional license was intended to ensure that applicants with solar systems above a certain size install a separate blocking device to ensure that excess energy is not exported to the grid.

“I only heard of a handful of licenses ever issued in this category. The process was ambiguous and difficult. To date, there are large commercial customers who comply with these regulations and, as a result, prevent thousands of kWh of energy from being sold to the public grid, especially on weekends. This clean energy should be used and not blocked,” he argued.

He said nothing has changed since the association wrote to Energy Minister Daryl Vaz in 2022 to raise concerns about the net billing program.

“There are too many requirements, the assessment of each application takes too long, the application is expensive (as a percentage of the total installed system costs) and the compensation is questionable. It does not correspond to the stated goals (of the government) to increase the total amount of renewable energy installed on the island. The program urgently needs to be optimized and revamped after sincere and in-depth consultation with stakeholders,” Hill emphasized.