The Jamaica Renewable Energy Association (JREA) condemns the Government for what it describes as an inefficient and non-consultative approach to interacting with solar users.

The current system requires anyone, including homeowners who generate electricity solely for personal use, to apply for a license from the energy department; this is a process that JREA sees as cumbersome.

“The process is cumbersome, slow and expensive. Many people do not apply because it is of no use to them. I would estimate that about 50 percent of renewable energy systems in Jamaica do not bother to apply for a license. “If compliance made sense and was easy, people would comply,” said JREA President Alex Hill. Jamaica Observer.

JREA has been expressing concerns about the net billing approach linked to licensing since 2022. According to information on the Ministry of Science, Energy, Telecommunications and Transport (MSETT) website, licensing is a five-step process consisting of several parts each, which includes a non-refundable application fee of $19,000, among other fees and costs. It begins with the submission of an application, which must undergo “preliminary technical and legal review” by MSETT before being processed.

Hill, who is also managing director of Iree Solar, was harsh in his assessment of the venture.

“The net billing process/program in Jamaica continues to operate inefficiently, completely ignoring stakeholder input. “There have been changes in the process that have significantly impacted how the program is managed and how data is presented to policymakers without consulting industry stakeholders,” he said.

For example, he cited recent unexpected changes to certain metrics; predicts these changes will have a ripple effect on the industry.

“This…will impact how our policyholders measure the efficiency and capacity cap given to the net billing program as a percentage of total net energy production in the country. We have also endured many seasons at MSETT where only one person could process applications. “As a result, this lengthens the processing time for applications and frustrates applicants.” Market Observer.

Net billing was introduced in 2022 and, according to the Jamaica Public Service Company Limited (JPS), has so far deployed approximately 800 systems from 1,200 customers licensed by the ministry of energy.

“These individuals are now net billing customers and receive compensation for the electricity they send to JPS,” said Winsome Callum, the utility’s Director of Communications.

It is not clear why people who are not considering selling power to JPS should apply, but MSETT made clear in their written response that they should also go through the process. Asked for clarification on the steps that people who do not intend to sell electricity should take, MSETT said that information on net billing is available on its website.

The Ministry also said Market Observer “Rate 10” residential JPS customers installing a solar photovoltaic system for personal use “will need to apply for a Utility Links license” from MSETT. By press time, there had been no response to a request for clarification on whether this license was in addition to the license based on net billing, but it said: “The Auxiliary Links regulations are currently being finalized and will be published in the official gazette once completed.”

According to JREA’s Hill, its members have had an equally troublesome time trying to comply with these rules.

“There is no subsidiary license to apply for. “There was an auxiliary license category a few years ago but this category was arbitrarily removed by MSETT without any consultation or notification to the industry,” he said.

He said the auxiliary license aims to enable applicants with solar systems over a certain size to install a separate blocking device to ensure excess energy is not exported to the grid.

“I have heard of only a handful of licenses being issued in this category. The process was uncertain and difficult. To date, there are large commercial customers who comply with these regulations and, as a result, prevent thousands of kWh of energy from being sold to the public power grid, especially on weekends. “This clean energy needs to be used and not hindered,” he defended.

He said nothing has changed since the association wrote to Energy Minister Daryl Vaz in 2022 to express concerns about the net billing program.

“There are too many requirements, each application takes too long to decide, it is expensive to apply (as a percentage of total installed base cost) and compensation is questionable. This does not align with (the Government’s) stated objectives to increase the total amount of renewable energy installed on the island. After frank and in-depth consultation with stakeholders, the program urgently needs to be optimized and revamped, Hill said.