Government has pulled the plug on a rebate scheme that offered residents up to $5,000 for installing solar panels in their homes.

The scheme was introduced in 2009 to encourage homeowners to use alternative energy sources. Solar hot-water rebates of $1,500 were also offered.

And although the scheme has been hailed a success, with more than 150 homes now interconnected to the grid, Government has now run out of cash to fund the scheme.

Economic Development Minister Grant Gibbons explained that $191,000 had been allocated for rebate payments for this year, and that money has now been spent.

“When the initiative began in 2009, it was intended that the total allocation for the programme would be $500,000,” Dr Gibbons said.

“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 pointed out that the cost of installing solar panels had been slashed since the scheme was introduced five years ago because of “technical advances and a thriving international marketplace”.

He added that Government was now exploring options to reduce other costs associated with of renewable energy, such as permits, licensing fees and processing times, while “a complete overhaul of energy legislation under way, which will also encompass regulatory reform”.

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

“Examples of these efforts include working with Belco to increase the number of interconnected residential customers allowed onto the grid beyond the current limit of 200, and working with the Department of Planning to streamline the installation approval process.

“Government remains committed to renewable energy and other means of supporting sustainable development. We are focusing our efforts on legislative reform, which, in addition to modernising Bermuda’s energy regulatory regime, will also provide a robust and sustainable platform for renewable energy developments of all sizes.”

According to a Ministry spokesman, the Department of Energy will honour all applications that have already been received and assigned rebate numbers. But because the rebate budget for this fiscal year has already been fully subscribed, no new numbers will be assigned.

For more information, rebate holders can contact the Department of Energy at 292-4595, or energy@gov.bm.