The five-year government rebate scheme for solar voltaic installations is to end this month, it was announced yesterday — but at least one solar energy infrastructure provider is not concerned by the move.

Jamie Smith, president of Solar Bermuda, one of the Island’s larger contractors in the field, said: “The rebate initiative absolutely did its job in providing the industry with a way to encourage consumers to invest in solar energy.

“The solar industry is now strong enough to stand on its own.”

A press release from the Department of Energy said the solar photovoltaic rebate initiative began in 2009, and ends “following five years of steady growth and a notable increase in solar panel and residential solar hot-water installations.”

The rebate scheme began as an incentive offering residents up to $5,000 for the installation of solar photovoltaic panels in their homes, and was followed by solar hot-water rebates of up to $1,500.

“Although the rebate programme has been successful in encouraging the adoption of residential solar installations, the initiative has now surpassed the $191,000 in budgeted funds available for this fiscal year,” stated the press release.

Minister of Education and Economic Development Grant Gibbons said: “When the initiative began in 2009, it was intended that the total allocation for the programme would be $500,000. To date, the Department of Energy has issued over $650,000 in solar rebates, and at the end of this fiscal year, it is anticipated that more than $800,000 will have been spent on rebates.”

Dr Gibbons added: “Technical advances and a thriving international marketplace for solar technologies have caused manufacturing prices to drop by more than 25 percent on average for solar PV panels since the initiative began.”

The president of the seven-year-old company Solar Bermuda said he was aware that the rebate would come to an end from the time it began — “five years ago” — explaining he had kept watch on the calendar and on the level of funding for the programme. He had stopped factoring in the rebate when bidding on jobs “for a little while now”, and if clients were able to claim a rebate, it meant a bonus for them.

Mr Smith also confirmed that the cost of solar panels has come down.

“I had understood the initiative wasn’t sustainable (indefinitely) and had a defined timeline of five years, and a defined amount — and it had exceeded that amount.

“We’re very comfortable with the rebate having been concluded. This can be taken as a sign of strength for the industry.”

Dr Gibbons added that there are more than 150 homes interconnected with the grid, selling their excess energy to Belco at a one-to-one rate, meaning that whatever rate the customer is paying per kilowatt hour is what they are credited for excess production.

The press release added that Government plans to work with Belco to increase the number of interconnected residential customers allowed onto the grid beyond the current limit of 200, and also work with the Department of Planning to streamline the installation approval process.

“They are also exploring options to reduce the ‘soft costs’ of renewable energy, which include expenses that are not strictly defined as labour or cost of goods, but rather things such as permits, licensing fees and processing times,” Dr Gibbons said.

“Finally, there is a complete overhaul of energy legislation under way, which will also encompass regulatory reform.”

While the rebate programme is ending, the Department of Energy said it will honour all applications that have already been received and assigned rebate numbers. The rebate budget for this fiscal year has already been fully subscribed and therefore, as of today, no new numbers will be assigned.

Dr Gibbons said: “Now the Government must focus its efforts and resources on creating sustainable and targeted strategies to increase the adoption of renewable energy technologies.”

Alternative energy providers Alternative Energy Systems and Besco declined to comment for this story.

Contact the Department of Energy at 292-4595, or energy@gov.bm.