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The Financial Benefits of Solar Hot Water Systems to Barbados

The Financial Benefits of Solar Hot Water Systems to Barbados. The average energy consumption for water heating per family is 4,000 kWh per year (Equivalent to 3.7 barrels of oil per year) Barbados has approximately 50,000 Solar Water Heaters. Total Oil Imports saving (per year). Total

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The Financial Benefits of Solar Hot Water Systems to Barbados

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  1. The Financial Benefits of Solar Hot Water Systems to Barbados • The average energy consumption for water heating per family is 4,000 kWh per year (Equivalent to 3.7 barrels of oil per year) • Barbados has approximately 50,000 Solar Water Heaters Total Oil Imports saving (per year) Total Energy saving (per year) 185,000 barrels of oil per year, or 200,000,000 kWh per year US $ 12,950,000.00 (US $ 70.00/barrel) BDS $ 25,900,000.00 per year 1

  2. The Financial Benefits of Solar Hot Water Systems to Barbados - Cumulative Savings Between 1974 and 2002, 35,000 systems were installed with BDS $260,000,000.00 savings to consumers. Perlack Report, Oak Ridge National Laboratory for the USAID. (www.solardynamicsltd.com/wp-content/uploads/2010/07/SWH-report1-2.pdf) 2

  3. The Financial Benefits of Solar Hot Water Systems to Barbados - Cumulative Savings (continued) 3

  4. National savings calculation Consumer Energy Savings from 1974 to 2009: BDS $ 819,640,720.00 4

  5. The EnvironmentalImpact Oak Ridge National Laboratory calculated that Barbados saved 15,000 metric tons of carbon emission from 35,000 Solar Hot Water Systems in 2002. This corresponds to an average saving of: 428 kgCO2 per system per year This estimate is in accordance with the US Department of energy (25.4 metric tons of carbon per terajoule). (Bioenergy Feedstock Development Programs: bioenergy.ornl.gov) 6

  6. The Environmental Impact In 2009, with 50,000 Solar Hot Water Systems installed, Barbados saved: 21,400 metric tons of CO2 This saving makes up more than 5.5% of all carbon emissions in Barbados. (estimated 380,000 metric tons of CO2 emissions in 2009) (Carbon Dioxide Information Analysis Centre at the Oak Ridge National Laboratory). 7

  7. Barbados’ position in comparison to the World in the Penetration Rate per 1000 Population International Energy Agency Solar Heating and Cooling. http://www.iea-shc.org/publications/downloads/Solar_Heat_Worldwide-2010.pdf 8

  8. Barbados’ best in Comparison with the World Tested Solar Hot Water System Performance Solar Dynamics System compares favorably to others systems tested by the FSEC (more than 200 systems): www.fsec.ucf.edu/en/certification-testing/STcollectors/hot_water_ratings/index.htm 9

  9. Barbados’ best in Compared to AlternateEnergy Technologies, LLC Solar Dynamics System compared to the 15 AET systems tested: www.fsec.ucf.edu/en/certification-testing/STcollectors/hot_water_ratings/tprdhwa.htm 10

  10. Barbados’ best Compared to Solahart Solar Dynamics System compared to the 4 Solahart Systems tested: www.fsec.ucf.edu/en/certification-testing/STcollectors/hot_water_ratings/tprdhws.htm 11

  11. Performance of the four FSEC tested Barbados Solar Hot Water Systems www.fsec.ucf.edu/en/certification-testing/STcollectors/hot_water_ratings/index.htm 12

  12. Performance of the four FSEC tested Barbados Solar Hot Water Systems www.fsec.ucf.edu/en/certification-testing/STcollectors/hot_water_ratings/index.htm 13

  13. The Barbados Success Factors As seen by US Agency for International Development / Oak Ridge Laboratory • The more important factors responsible for Barbados’ success in solar hot water systems are: • Recognition of the potential importance of Solar Water Heaters at the very highest levels of Government • Development of the industry at a time of rapidly rising electricity costs and awareness of energy costs. 14

  14. The Barbados Success Factors As seen by USAID / Oak Ridge Laboratory • Implementation of key fiscal incentives to lower Solar Water Heater costs. • A small but timely Government purchase program for housing development projects. • The combination of high electricity costs and financial incentives made for very low payback periods and little financial risk for the consumer. • Local companies that stand behind the product by offering performance warranties, specified temperatures, and reliable after sales service. 15

  15. What has been said of the industry • The Barbados Solar Water Heating program is unparalleled in the Caribbean. (USAID) • The Solar Water Heating program in Barbados is perhaps the best known and successful of all Renewable Energy Technology programs in the Caribbean. (USAID) • The critical expertise to develop the solar water heating concept into a marketable and functional product was provided by James Husbands. (USAID) 16

  16. What has been said of the industry • A Special Innovation Award was given in 2006 as part of the National Industrial Awards, which sought to recognize “the single innovation that has had the greatest impact on the landscape of Barbados within the last 50 years”. • That innovation was considered to be solar technology. BIDC. 17

  17. Some Barbados firsts • Solar Dynamics Ltd. is the first known company in the world to give consumers a temperature guarantee. • Solar Dynamics introduced independent product testing by the Florida Solar Energy Center. • http://www.fsec.ucf.edu • The design of a horizontal solar storage tank with production in North America by AO Smith and John Wood Ltd. • The design of aluminum extrusions for collectors. 18

  18. Market potential for Solar Hot Water Systems in the Caribbean • Based on projections US Agency for International Development Special Financing Mechanisms For The Solar Water Heater Sector, 2002. • The market is for 17,900,000 people in 4,565,000 households across the Caribbean. • Assumed Total Maximum Penetration between 10% to 50% depending on the country. (Trinidad 25%) • Based on systems already installed, the potential market calculated is 798,000 systems. Average assumed price: US $ 1,800.00 = US $ 1,436,400,000.00 19

  19. Successful Replication of Industry Barbados has established itself as a leader in the Solar Hot Water Industry. The opportunity for expansion of the industry is enormous. EC $1= $1,000 Performance of Solar Dynamics E.C. Ltd. 20

  20. Market Interest: Bahamas 1/2 A Vision for the Bahamas 1Based on oil price of $50 to $130, $0.60/gallon non-crude cost for diesel, carbon price of $10-$30 per mt, $0.35/kwh retail electricity rate, $4,000 average cost of SWH, 15% volume discount, and 60% of cost spent on domestic manufacturing/labor. (Presenter: Mr. Al Binger) Set goal of 50,000 solar water heaters installed by 2015 Implement package of incentives and financing to facilitate rapid adoption; explore mandate on new construction and require conversion beyond 2015 Significant energy use and emissions reductions possible Powerful economic benefits1 26

  21. Market Interest: Bahamas 2/2 SDL: Making the Vision a Reality (Presenter: Mr. Al Binger) • SDL uniquely positioned to help Bahamas and other SIDS achieve widespread adoption of solar water heaters • Analyze costs/benefits of various packages of tax incentives, financing structures, and ownership regimes—financial model already operational • Coordinate with Govt, private sector, local NGOs • Seek multi-lateral and bi-lateral funding / credit support • Help secure and monetize carbon credits • Explore low cost sourcing, local manufacturing, ECA support for imports, volume purchase discounts • Consumer educational campaign • Apply Bahamas experience to other SIDS • Replicate successful structures / policies / partnerships • Consider regional implications of SWH program (e.g., manufacturing, technician pool, volume purchases, etc.) 22

  22. Awards Solar Dynamics and its principal has won many national, regional and international awards: Barbados Gold Crown of Merit – Independence Awards 1994 Wendell McClean Award – MESA Ministry of Energy and the Environment - 2007 Entrepreneurship Award – BIDC World Renewable Energy Congress – 2008 Anthony N Sabga Caribbean Awards for Excellence - 2008 23

  23. Thank You ! 25

  24. References Perlack Report, USAID, 2003 Solar Dynamics Ltd CIA World Fact-book Light and Power US Department of Energy Carbon Dioxide Information Analysis Centre at the Oak Ridge National Laboratory Typical emissions in Northern America (RNCAN, NREL E-U, US EPA) 2008 UN estimation for 2010 International Energy Agency - Solar Heating and Cooling Program Florida Solar Energy Center BIDC Barbados Solar Water Heater Industry Export Strategy SolarThermalWorld.org Dr. Oliver St. Headley University of the West Indies 24

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