1

� 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

TotalEnergy saving

(per year)

185,000 barrels of oil per year,or

200,000,000 kWh per year

TotalOil Imports

saving(per year)

US $ 12,950,000.00(US $ 70.00/barrel)

BDS $ 25,900,000.00 per year

1

2

Between 1974 and 2002, 35,000 systems were installed withBDS $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)

YearNew

Systems

Cumulative

energy saving

(kWh)

Electrical

Energy

equivalent

Money saving

each Years

(BDS)

4000 kWh

per systemBDS$/kWh Cost x Energy

1974-2002 35000 140 000 000 260 000 000

2003 2000 148 000 000 0,3689 54 597 200

2004 2100 156 400 000 0,4010 62 716 400

2

3

YearNew

Systems

Cumulative

energy saving

(kWh)

Electrical

Energy

equivalent

Money saving

each Years

(BDS)

4000 kWh

per systemBDS$/kWh Cost x Energy

2005 2100 164 800 000 0,4311 71 045 280

2006 2100 173 200 000 0,4557 78 927 240

2007 2100 181 600 000 0,4730 85 896 800

2008 2300 190 800 000 0,5785 110 377 800

2009 2300 200 000 000 0,4804 96 080 000

3

4

Consumer Energy Savings from 1974 to 2009:

BDS $ 819,640,720.00

4

5

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).

6

(Bioenergy Feedstock Development Programs: bioenergy.ornl.gov)

6

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

International Energy Agency Solar Heating and Cooling.http://www.iea-shc.org/publications/downloads/Solar_Heat_Worldwide-2010.pdf

8

8

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

Solar Dynamics System compared to the 15 AET systems tested:

www.fsec.ucf.edu/en/certification-testing/STcollectors/hot_water_ratings/tprdhwa.htm10

10

www.fsec.ucf.edu/en/certification-testing/STcollectors/hot_water_ratings/tprdhws.htm

Solar Dynamics System compared to the 4 SolahartSystems tested:

11

11

www.fsec.ucf.edu/en/certification-testing/STcollectors/hot_water_ratings/index.htm

12

1213www.fsec.ucf.edu/en/certification-testing/STcollectors/hot_water_ratings/index.htm

13

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

� 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

� 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

� 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

�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

� 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

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

A Vision for the BahamasA Vision for the Bahamas

�� Set goal of 50,000 solar water heaters installed by Set goal of 50,000 solar water heaters installed by 2015 2015

�� Implement package of incentives and financing to Implement package of incentives and financing to facilitate rapid adoption; explore mandate on new facilitate rapid adoption; explore mandate on new construction and require conversion beyond 2015construction and require conversion beyond 2015

�� Significant energy use and emissions reductions Significant energy use and emissions reductions possiblepossible

�� Powerful economic benefitsPowerful economic benefits11

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.

26(Presenter: Mr. Al Binger)

21

SDL: Making the Vision a RealitySDL: Making the Vision a Reality�� SDL uniquely positioned to help Bahamas and other SIDS achieve SDL uniquely positioned to help Bahamas and other SIDS achieve

widespread adoption of solar water heaterswidespread adoption of solar water heaters�� Analyze costs/benefits of various packages of tax incentives, fiAnalyze costs/benefits of various packages of tax incentives, financing nancing

structures, and ownership regimesstructures, and ownership regimes——financial model already financial model already operationaloperational

�� Coordinate with Coordinate with GovtGovt, private sector, local NGOs, private sector, local NGOs

�� Seek multiSeek multi--lateral and bilateral and bi--lateral funding / credit supportlateral funding / credit support

�� Help secure andHelp secure and monetizemonetize carbon credits carbon credits

�� Explore low cost sourcing, local manufacturing, ECA support for Explore low cost sourcing, local manufacturing, ECA support for imports, volume purchase discountsimports, volume purchase discounts

�� Consumer educational campaignConsumer educational campaign

�� Apply Bahamas experience to other SIDSApply Bahamas experience to other SIDS�� Replicate successful structures / policies / partnershipsReplicate successful structures / policies / partnerships

�� Consider regional implications of SWH program (e.g., manufacturiConsider regional implications of SWH program (e.g., manufacturing, ng, technician pool, volume purchases, etc.)technician pool, volume purchases, etc.)

22(Presenter: Mr. Al Binger)

22

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

Perlack Report, USAID, 2003Solar Dynamics LtdCIA World Fact-bookLight and PowerUS Department of EnergyCarbon Dioxide Information Analysis Centre at the Oak Ridge National LaboratoryTypical emissions in Northern America (RNCAN, NREL E-U, US EPA)2008 UN estimation for 2010International Energy Agency - Solar Heating and Cooling ProgramFlorida Solar Energy CenterBIDCBarbados Solar Water Heater Industry Export StrategySolarThermalWorld.orgDr. Oliver St. Headley University of the West Indies

24