COMMERCE science and technology minister Phillip Paulwell says he hopes to introduce net metering in Jamaica by the end of next month, as one of a raft of energy conservation measures now being discussed by Cabinet.

PAULWELL... has instructed OUR to finalise policy framework

Net metering basically allows consumers who install alternative energy systems - like solar - to offset the cost of the electricity they buy from a utility firm, by selling back the power they generate at home or their business place into an official electricity grid.
"I've instructed the OUR (Office of Utilities Regulation) to finalise a policy framework for net metering," an upbeat Paulwell told the Sunday Observer.

According to Paulwell, the protocols are being worked out and implementation should take effect by the end of November.
How net metering works is that customers are linked into a supply grid, but their meters are set to to run backward.

A charge is incurred for the net amount of power used, that is where consumption exceeds the electricity generated by the user's system.
The policy, in various forms, has already been implemented in more than 30 states in the United States, and, according to advocates, it gives consumers more financial benefits from installing renewable energy systems.

In addition to net metering, Paulwell said the government was giving serious thought to abolishing import duties and taxes on the components required for solar and wind-powered energy systems.

"Right now, what we're trying to do is remove GCT and import duties," Paulwell said, adding that among the proposals was "a full slew of incentives to encourage the use of hybrid and diesel motor vehicles", as well as photovoltaic systems.

He declined to give details, saying that he was constrained because the discussions related to taxes.
Paulwell's revelations, however, will inspire hope among alternative energy advocates who have long called on the government to make solar and wind energy systems more affordable by lifting duties, taxes and processing fees.

Ocho Rios businessman Curtis Bent shows his 3,600-watt Xantrex inverter that, with the help of eight deep cycle batteries and eight solar panels, reduces his domestic electricity bill. (Photo: Karl McLarty)

On September 18, the Sunday Observer reported Alternative Power Sources managing director, Damian Lyn as saying that lifting the 16 1/2 per cent GCT (General Consumption Tax) as well as import duties on deep cell batteries and inverters would help more Jamaicans to afford alternative energy systems and slash the country's oil import bill, expected to hit US$1.2 billion this year.

Last year, Jamaica spent US$937 million to import oil, which accounts for more than 90 per cent of energy consumption here.

"If they (government) are serious about cutting cost and saving on what they spend; If the government calculate their energy bill, what they pay in US dollars against what concessions they're giving up, it's worth it," said Lyn, whose company is in the business of installing alternative energy systems in homes and businesses.

In late August, Lyn showed the Sunday Observer what he calls a starter system in the Ocho Rios home of Curtis Bent.
The system consists of a 3,600-watt Xantrex inverter, eight deep cycle batteries, and six solar panels. The starter system, said Lyn, costs between J$100,000 and J$120,000, including GCT.

Bent, who worked at Tropical Battery Company Ltd for 35 years and is now operating his own battery store on Main Street, Ocho Rios, said he started small with two batteries, a 750-watt inverter and two solar panels.

"Then I increased the wattage to 2,000 and added another two batteries. It cost me $23,000."

The upgrade to the 3,600-watt inverter cost Bent just over $100,000 and he added four more batteries. "This one can take the entire house," he said. "The only thing I don't have on this now are the fridge and the washing machine. Eventually I'm going to put those on."

In August, Bent had shaved only about $1,000 off his monthly electricity. That was so, he said, because he had not been using the system continuously, as he had been switching back and forth to the JPS grid.

Last Thursday, he said he had seen a drop of $2,000 in his monthly electricity bill and was optimistic that it would decrease further at the next reading because two weeks ago he added two more solar panels, increasing the count to eight.

Given the system Bent already has in place, he would likely benefit from the introduction of net metering, a concept first put on the table several years ago and which is supposed to get funding assistance from Paulwell's much touted energy fund.

The Jamaica Public Service (JPS) has so far not stated publicly its position on net metering. But energy analysts say the electricity monopoly will likely benefit from improved load factor on its grid when customers are producing their own electricity during peak periods.
Others point, though, to the possibility of revenue losses if there is substantial market penetration of solar and other renewable energy-powered buildings.

That, they argue, is likely to push utility firms to recover their costs from remaining customers.

Among the proposals now before the Cabinet, Paulwell added, were incentives for the importation of hybrid motor vehicles, as well as the possibility of importing large volumes of energy-saving bulbs for sale by a state agency such as Petcom.

"What we don't want to do," he cautioned, "is damage the commercial interests in that area."