Customs duty rates have been slashed for environmentally-friendly products, in a move welcomed by green campaigners.

The changes, which take effect on April 1, see zero duty for solar water heaters, solar thermal collectors, wind powered electrical generating sets and 'smart' electricity meters with net metering capacity.

Photovoltaic AC generators are also included in the zero-percent rate these use solar cells for energy by converting sunlight directly into electricity.

In addition, the duty rate for compact fluorescent bulbs will be reduced from 22.25 percent to 10 percent.

And in news likely to please sailing enthusiasts during tough economic times, the duty rate for pleasure yachts and other pleasure craft has been halved from 55 percent to 22.25 percent.

That's a reversal of a move made last April by Finance Minister Paula Cox, who upped the rate to the current 55 percent from the former 33.5 percent in a bid to raise revenue. At the time, Ms Cox said pleasure craft were proliferating as a sign of "the growing levels of income and wealth in our community".

News of the duty waiver for environmentally-friendly items was welcomed by Charles Brown, director of the Sustainable Development Unit, who said: "This is an encouraging move that should result in a significant increase in the number of residents using alternate sources of energy to support their everyday living. It's great to have Government advancing the sustainable development agenda."

Andrew Vaucrosson, president of environmental charity Greenrock said: "We hope that the savings created by this action stimulate interest in implementing these green energy technologies throughout Bermuda. Greenrock encourages local suppliers of these technologies to pass on these savings to the end user so that a broader sector of our population can benefit from these sustainable solutions.

"The ultimate social-economic benefit is having more people experience this technology who under normal circumstances would be excluded."

Mr. Vaucrosson said the charity would continue to work with Government in encouraging other forms of duty relief for sustainable products in the areas of transportation, construction, consumer goods, energy and water consumption.

Linda Smith, senior vice president of Corporate Relations at Belco said: "This is great news. Bermuda's energy future requires a composite of solutions. Greater energy efficiency and renewable energy are vital to the development of an integrated energy plan which we believe Bermuda must embrace going forward."

Meanwhile Minister of Energy, Telecommunications and E-Commerce Terry Lister said: "The implementation of the new tariff reducing customs duty to zero for renewable energy goods is just one of the many ways that our Ministry is working in collaboration across Government to implement various incentive schemes to raise the public's awareness and to encourage the adoption and use of energy efficient products."

The new customs tariff is available on the Customs Department website, www.customs.gov.bm.