Solar energy row – Jamaica Observer

The Jamaica Renewable Energy Association (JREA) is criticizing the government for what it calls an ineffective and unconsultative approach to engaging with solar energy users.

The current system requires everyone, including homeowners, who generate electricity only for personal use to apply for a license from the Department of Energy, a process JREA finds cumbersome.

“The process is labor-intensive, 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 a license. If compliance made sense and was easy, people would comply,” JREA President Alex Hill said in response to questions from representatives Jamaican columnist.

As of 2022, the JREA has raised concerns about the licensing approach to net billing. According to the Ministry of Science, Energy, Telecommunications and Transport (MSETT) website, licensing is a five-step process, each with multiple parts, which includes a non-refundable application fee of $19,000 in addition to other fees and costs. It begins with the submission of an application, which must undergo MSETT’s “preliminary technical and legal review” before being accepted for processing.

Hill, who is also managing director of Iree Solar, was scathing about the initiative.

“Jamaica’s clean billing process/program continues to operate ineffectively and with complete disregard for stakeholder input. There have been changes in the process that significantly impact how the program is administered and how data is presented to policymakers without any consultation with industry stakeholders,” he said.

He cited, for example, recent unexpected changes in some indicators that he expects will have a ripple effect on the sector.

“This… will impact how our policyholders evaluate the efficiency and capacity limits provided to the net billing program as a percentage of the nation’s total net energy production. We have also experienced many seasons where only one person could process applications at MSETT. Consequently, this increases application processing times and frustrates applicants,” Hill told the publication. Sunday Columnist.

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

“These people are now net billing customers and are compensated for the electricity they send to JPS,” said utility provider communications director Winsome Cullum.

It is not clear why persons who do not intend to sell electricity to JPS need to apply, but MSETT has made it clear in its written responses that they must also go through this process. When asked to explain the steps to be taken by those who do not intend to sell electricity, MSETT said information on net accounts is available on its website.

The ministry also reported Sunday Columnist that JPS “Tier 10” residential customers who install a solar PV system for personal use “will be required to apply for an auxiliary connection license” from MSETT. At the time of publication, there was no response to a request to clarify whether this license is in addition to the pure billing license, but it did say that “the rules on ancillary connections are currently being finalized and will be published once finalized.”

JREA’s Hill said members have had a tough time trying to comply with those rules.

“There is no additional license to apply for. There was an ancillary license category several years ago, but MSETT arbitrarily removed that category without any consultation or notification to the industry,” he said.

He said the additional license aims to require applicants with larger solar systems to install a separate interlocking device to ensure excess energy is not exported to the grid.

“I have only heard of a few licenses ever being issued in this category. The process was controversial and difficult. Today, there are large commercial customers who comply with these rules and, as a result, block the sale of thousands of kWh of energy to the public grid, especially on weekends. This clean energy should be used, not blocked,” he said.

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

“There are too many requirements, each application takes too long to process, it is expensive to apply (as a percentage of the total cost of the installed system), and reimbursement is questionable. This does not meet (the government’s) stated goals of increasing the total amount of renewable energy installed on the island. The program needs to be streamlined and updated as a matter of urgency, following genuine and in-depth consultation with stakeholders,” Hill urged.