Energy Resilience in Jamaica
Solar Financing Seminar for Financial Institutions
Solar Financing Seminar for Financial Institutions – September 22nd and 23rd, 2022
JERA and DBJ, with support from USAID, hosted the Solar Financing Seminar for Financial Institutions to provide resources for Jamaican financial institutions interested in financing and supporting local solar projects. The in-person event took place in Kingston, Jamaica and included key voices and stakeholders in the region’s solar financing landscape. You can watch the live recordings of both days of the seminar in the videos below.
Dispelling Myths and Misconceptions about Solar PV and Battery Storage
The following list is a summary of takeaways from the Myths and Misconceptions about Solar & Storage session at the Solar Financing Seminar. This presentation included an overview of financial risks associated with solar project development, technology (panels, inverters, batteries, and other equipment), solar system performance, revenue, and regulatory/legal considerations. Presenters explained each risk and offered examples of market best practices aimed at mitigating those risks. A list of those market protections can be found below.
Risk I: Project Development Risk
Description of Risk:
- Construction quality can be poor, and timeline delayed.
Market Response:
- Most installers provide warranties on labor, public liability insurance, and compliance with Government Electrical Regulator (GER) inspections.
Risk II: Technology Risk
Description of Risk:
- Solar PV, inverters, and battery storage systems are inefficient, faulty, and mismatched to local conditions.
Market Response:
- Solar panels (with proper system design) can withstand extreme weather events.
- Most installers carry manufacturer’s warranties for solar panels.
- Standards (Underwriter Laboratories (UL) for US products and Conformité Européenne (CE) for European products help ensure quality of panels and inverters.
- Insurance companies in Jamaica can provide supplemental solar insurance.
Risk III: Performance Risk
Description of Risk:
- Annual output can be below projected output.
- No one is available to service the system.
Market Response:
- Many installers use JPS load data to estimate system sizes.
- Installers provide operations and maintenance support to solar systems.
Risk IV: Revenue Risk
Description of Risk:
- Systems may be too costly for customers.
- Systems may not be economical across all sizes.
Market Response:
- Systems are economic across customer classes; net billing is an added benefit.
Risk V: Regulatory Legal Risk
Description of Risk:
- Lack of customer knowledge of net billing rules and interconnection processes may impact project economics and timeline.
Market Response:
- Interconnection and net billing procedures are carried out by most installers.
Click here for additional resources shared at the Seminar for further study, including a guide on best practices for solar risk management.