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Career & Education
BY LUKE DOUGLAS Career & Education writer editorial@jamaicaobserver.com  
February 27, 2010

Company sees business opportunities in renewable energy

WITH the increased awareness of global warming and volatility in the world petroleum market, a few companies in Jamaica have seized the opportunity to provide renewable-energy products and services to the local market.

One such company is Kingston-based Gormann Corporation, which over the past two years has positioned itself to take advantage of the growing market for photovoltaic systems, which allow consumers to generate electricity from the sun.

Managing director Jennings ‘Max’ Gordon said that in addition to installing systems for large companies, Gormann has been supplying small solar systems to households.

“We have become more established in the business. Previously we were doing only outdoor lighting, but now we are servicing more residential and commercial customers” he told Career & Education.

The 29-year-old company traditionally supplies power protection devices, such as surge protectors, and designs computer rooms. With its recent emphasis on renewable energy, Gormann has hired new staff mostly on a part-time basis. They include installation and technical support, a consulting engineer, and marketing executive Malissa Fletcher, who is helping to increase awareness of the company in the marketplace.

“Most people think that solar systems cost one point something million dollars, but we are saying you can start with as little as 55,000,” Fletcher said. “In the event of a hurricane, this allows you to continue working by running a laptop and three energy-saving lights or perhaps a 14-inch television.”

This starter system, which consists of a 50-Watt solar panel, a 12-Volt deep cycle battery and a 400-Watt inverter, is quite popular and allows customers to easily upgrade to a $265,000 system which can run a small refrigerator.

While the systems do not result in significant savings in money, they are more environmentally friendly and substitute well for petrol-powered generators.

Gormann has signed agreements with well-known suppliers of solar energy systems, such as AEE Solar from California, USA, which also make their expertise available to the company.

Business has been steady for Gormann, Gordon indicated, but he takes issue with successive governments which he says can do more to encourage the use of renewable energy in the country.

Actions needed to foster renewable energy include:

* accelerated depreciation on solar energy systems, that is earlier write off on equipment, thus saving taxes to users of the systems;

* net metering whereby excess power generated by solar systems is sent through the public power supply and the supplier of the solar energy credited by the Jamaica Public Service Company at its commercial rate; and

* tax credits for companies installing solar energy systems.

These actions would encourage more entrepreneurs to acquire solar energy.

“Businesses in particular would become more viable because they would be running their business literally off the sun,” Gordon said.

Apart from the financial benefits, solar energy is better for the environment.

“The problem of global warming is a serious matter and we have to be mindful of the Kyoto Protocol, which calls for the reduction in greenhouse gases,” reminded Fletcher.

Gordon admitted that the lobby to get Government to take action is weak and that the local solar energy association was not very active.

But despite the challenges, Gordon encourages entrepreneurs to invest in solar because it is the energy of the future.

“Both solar and wind are set to be the growth areas for the US economy and we should piggy back on it. There are a whole lot of spin-offs from this industry, requiring the use of installers, the production of fabrication materials and other high-tech areas. In the long run, the entire country will benefit,” he said.

Gormann staff cap:

Gormann managing director Max Gordon and marketing executive Malissa Fletcher examine a solar energy system at the company’s offices in Kingston.

Solar system pictures cap:

Solar panels on the roof of Gormann’s building.

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