I believe that one of the major factors stifling the growth of the renewable energy industry, besides the inability of successive government to develop a bipartisan energy plan, is access to comprehensive financing options. This is unfortunate because some of the financial institutions operating locally offer excellent lending products in their home countries where electricity is much cheaper. Let's face it, Bahamians like to borrow and there is no doubt that our borrowing habits have contributed to the wealth of financial institutions operating in our country today. Indeed borrowing season is upon us and persons are lining up for vacations and school fees and for a lot of stuff we will not be able to locate in about six months' time, but lending products that can assist homeowners and businesses to reduce their energy spend or further develop the renewable industry in this country, if they are available, must be a very well-kept secret.
As an example RBC offers to its clients in Canada, "Green Products & Services" to help their clients make a difference, according to their website. They offer an Energy Saver(TM) Loan that entitles you to a one percent discount if you are purchasing an environmentally friendly item and home energy audit rebates under certain conditions. There is a RBC Energy-Saver Mortgage and Solar Panel Financing is also available.
According to CIBC's website, their Canadian clients are entitled to, "Renewable Energy and Cleantech Financing" through an investment team focused on this sector. This team provides both capital and advice to suitable lenders. They go on to boast about how much money has been lent since the launch of this programme in 2009.
Scotiabank not only offers a myriad of green solutions to its Canadian clients, but to add insult to injury, an article in the Jamaican Observer points to our Caribbean neighbor, Scotia Jamaica, setting up new loan facilities to assist SMEs (Small and Medium Enterprises) and homeowners interested in investing in renewable energy. Products that qualify include solar panels, solar water heaters, grid panels and related equipment to support the installation of the relevant green product.
There is seemingly a lack of imagination and an unwillingness to develop these products here locally, products that would indeed make a difference to small hotel operators who find it more beneficial to close for some months of the year due to energy costs that make operation unfeasible. In the same way these options would make a difference to homeowners whose mortgage and electricity bill are about the same. We need to demand more than business as usual from our banking institutions. We need to collectively apply pressure to ensure that we are able to benefit from similar products that they offer in other jurisdictions where they operate, we all deserve better.
- Sonia Brown is the principal of Graphite Engineering Ltd. and is a registered professional engineer. Email her at sbrown@graphitebahamas.com.
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