THE Jamaica Renewable Energy Association (JREA) is blasting the Government for what it describes as an inefficient and non-consultative approach in how it engages with users of solar energy.

The current system requires everyone — including homeowners who generate power only for personal use — to apply for a licence from the energy ministry, a process the JREA views as unwieldy.

“The process is cumbersome, slow and expensive. Many people simply do not apply as there is no benefit to them. I would estimate that around 50 per cent of renewable energy systems in Jamaica do not bother applying for the licence. If complying made sense and it was easy, people would comply,” said JREA President Alex Hill in response to questions from the Jamaica Observer.

Since 2022, the JREA has been voicing its concerns about the net billing approach that is linked to licensing. According to information on the Ministry of Science, Energy, Telecommunications, and Transport’s (MSETT) website, licensing is a five-step process — each with several parts — that has a $19,000 non-refundable application fee in addition to other charges and costs. It begins with submission of an application that has to go through a “preliminary technical and legal review” by the MSETT before being accepted for processing.

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

“The net billing process/programme in Jamaica continues to operate inefficiently and with total disregard for stakeholder input. There have been changes in the process, which materially affect how the programme is administered and how the data is presented to policymakers without any consultation with industry stakeholders,” he said.

He cited, for example, recent unexpected changes to certain metrics, alterations which he anticipates will have a ripple effect on the sector.

“This…will affect how our policyholders gauge the effectiveness and capacity limit given to the net billing programme as a percentage of total net energy generation in the country. We have also endured many seasons when only one individual is able to process applications at MSETT. Consequently, this extends the processing time for applications and frustrates the applicants,” Hill told the Sunday Observer.

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

“These persons are now net billing customers, and are receiving compensation for the power that they send to JPS,” said the utility provider’s Director of Communications Winsome Callum.

It is unclear why individuals who do not intend to sell power to JPS need to apply but the MSETT has made it clear, in its written replies, that they must also go through the process. Asked for an explanation of the steps needed to be taken by individuals who do not intend to sell power, the MSETT said information on net billing was available on its website.

The ministry also told the Sunday Observer that “Rate 10” residential JPS customers who install a solar photovoltaic system for personal use “will need to apply for an Auxiliary Connections licence” from the MSETT. Up to press time, there was no reply to a request to clarify if that licence is in addition to the one linked to net billing but it did say “the Auxiliary Connections regulations are currently being finalised and will be gazetted once completed”.

According to the JREA’s Hill, his members have had an equally torrid time trying to comply with those rules.

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

He said that auxiliary licence was aimed at ensuring that applicants with solar systems above a certain size install a separate blocking device to ensure no excess energy is exported to the grid.

“I only heard of a handful of licences that were ever issued in this category. The process was ambiguous and arduous. To date, there are large commercial clients who abide by these regulations and as a result, block thousands of kWhs of energy from being sold to the public electricity grid, notably on weekends. This clean energy should be used and not blocked,” he argued.

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

“There are too many requirements, the adjudication of each application takes too long, it is expensive to apply for [as a percentage of total installed system cost] and the compensation is questionable. It does not match up with the [Government’s] stated goals of increasing the total amount of renewable energy installed on the island. The programme needs to be optimised and revamped as a matter of urgency after sincere, in-depth consultation with stakeholders,” Hill urged.