THE SOLAR WATER HEATING INDUSTRY in Barbados is stagnant.
And sales director of Sunpower Limited, Henry Jordan, has called on the Government to move with haste in passing legislation that could see an improvement for that section of the alternative energy sector.
In addition, Jordan said there were “a few impediments”, including a shortage of finance for solar water heating projects, which was preventing a number of householders from outfitting their residence.
He said what was needed for the take-up of solar water heating systems to increase was the removal of VAT on those systems and to make low interest financing available. Jordan said if this was done the industry would have to employ “at least another 100” people who would be able to manufacture an extra 4 000 units a year.
Jordan made the comments while responding to questions at a Press conference put on by the Barbados Renewable Energy Association (BREA) at the Barbados Coalition of Service Industries last Friday.
He said a “downturn” in the local construction sector was also responsible for the stagnation.
“The solar water heating industry has stagnated a lot in the last four years,” said Jordan.
“We estimate that the [penetration] of the industry of about 104 000 homes is about 40 per cent. So if you take an industry that has been around for 39 years and you have a 40 per cent penetration that is not good enough. You may produce between 4 000 and 4 500 systems a year but the industry should be looking at a 75 per cent housing stock penetration,” said Jordan.
Stagnation
Concerning the installation of the systems in the business sector, Jordan said the take-up was mainly among restaurants, laundromats and hotels. He said however, due to “performance stress” and low financial returns “solar water heating [systems] on those properties are not necessarily refurbished when they are supposed to be”. He also suggested that if the local industry expanded the country could earn foreign exchange by exporting within CARICOM.
Jordan said for Sunpower sales had been consistent over the last two years but there had been a decrease in the company’s profits.
“We find that we have to discount more to keep business turning over and to satisfy customers. So that has an impact on your bottom line. We are not advocating that the industry is doing badly, we are saying from our perspective it is at a standstill,” said Jordan. (MM)
