Susan Gordon, Business Reporter

An array of photovoltaic panels.

A young solar energy company, having invested $6 million in photovoltaics, now says it is going after 10 per cent of monopoly electricity provider Jamaica Public Service Company's clients by tapping into the sun for a cheaper and cleaner power supply.

Incorporated in 2003, Universal Utility Company (UUC Solar) started out as an electrical utility company providing products in demand by JPS. In 2005, solar utility was added to its business mix, said directors Lascelles Hanlan and David Lawrence.

Photovoltaics

Photovoltaics generate electricity by converting sunlight into direct current (DC) and then into alternating current (AC) - the type generally used for domestic purposes - using solar panels.

"Based on our market research, 83 per cent of Jamaicans said if they could do without electricity (from JPS), they would. The commercial entities need steady supply and this is what solar offers," said Lawrence.

"We look at JPS' customers whom are over 536,000, and have established that about 10 per cent of that - over 50,000 - may find it feasible to purchase this system."

UUC Solar is not the first alternative energy company to hit the market. In fact, solar energy is gaining acceptance, but only households with high disposable incomes can afford the initial investment that a solar-powered home requires. Powering an entire house through photovoltaics can cost millions.

Savings

In fact, a Montego Bay chef, Hans Schenk featured in the Outlook on January 8, said he invested about $5 million in his system, but estimates he has saved about $400,000 per year in the three and a half years of conversion.

By contrast, subscription to JPS' system costs about $1,500 initially, and a small household would face monthly bills of about $4,000 per month (approximately $48,000 per year).

"Solar becomes an equity as having it increases the value of your homes," said Lawrence, an engineer with 31 years of experience.

But it will cost clients at least $1.3 million to have the system installed.

The million-dollar investment would provide a PV panel containing photo voltaic cells which produce DC electricity when exposed to sunlight, a charge controller which controls the electricity produced by the panel and regulates the battery charging, an inverter and a battery. The inverter converts the DC voltage into AC, and the battery stores the electricity.

"Our system gives you a battery, which provides electricity when the sun is out. The sun's heat is stored in the batteries and batteries act as reservoirs and absorbs heat," said Lawrence.

UUC's client list includes COK Credit Union, a few schools and banks, said the company director, adding that if they managed to secure even 150 customers for the PV system, he would consider the business venture a success.

UCC is a dealer of Sunwize Technologies, a large solar technology company in the United States with a parent company in Japan. Sunwize supplies the necessary parts for the system, including the batteries which resemble those used in automobiles, only larger.

The lifespan of the PV system is said to last about 14 years with only a 6 to 12 months check up on the battery after installation.

Installation lasts 8 to 24 hours.

For a regular three-bedroom house with a family of four the cost to install the PV system is $1.3 million or closer to $1.8 million for an upscale dwelling using air conditioning. UCC Solar can power the house in modules, the basic module costing $1.3 million for 400 kilowatt hours per month.

"We price our system based on one and half day of no sunlight but we can design for four to five days. More reserves mean more batteries," he said.

Lawrence said Jamaica's Bureau of Standards has no standard for solar energy providers, but suppliers in the United States have listed certain standards.

The Financial Gleaner confirmed this with the Bureau. An officer in the electrical department said the agency no longer has a solar laboratory.

UUC Solar employs eight persons in Kingston, and plans to expand to Ocho Rios and Montego Bay.

susan.gordon@gleanerjm.com