International Finance Corporation initiative helps Pacific Business’ cut energy costs

A new partnership between IFC and Smart Commercial Solar will enable Pacific businesses struggling with high energy costs to get help to evaluate more competitive options.

Fiji Times reports the first phase of the project kicks off with a free energy report offered by SCS to businesses interested in calculating how much they can save if they switched to solar.  This report is targeted at commercial and industrial customers who pay commercial rates for electricity. The report, which is accessed after filling in a small online survey, shows the savings a solar system will generate for an organisation.

Huon Hoogesteger, CEO of Smart Commercial Solar said the Pacific solar campaign has a dual focus - supplying electricity users in the Pacific Islands with information on how to reduce costs and gathering data on the challenges business’ face and what assistance they might need in making the transition to solar.

“Solar panel prices have fallen 80% since 2009 making solar electricity very competitive especially in the Pacific Islands which experience some of the most expensive electricity prices in the world.”

Rooftop solar and grid tied solar have grown rapidly worldwide with over 1.6 million installations in Australia and over 1 million in the United States.  IFC’s Regional Manager, Pacific, Tom Jacobs observed that despite the high cost of electricity, the Pacific has lagged behind in the use of renewable energy especially solar power.

“The aim of the research is to determine the barriers to solar development and increase commercial solar use throughout Pacific”.

Recent feasibility studies completed in Vanuatu as part of this project, showed rates of return over 20% and payback periods under 4 years for grid tied commercial solar.

Global trends suggest businesses get the best results from solar as they are on higher tariffs and use most of their power during the day. The systems are grid tied, meaning a connection to the local utility provider is maintained and no battery storage is needed.  One uses solar while the sun shines and return automatically to the grid when it doesn’t.

“The world is moving away from the age of fossil fuels to the age of renewable energy” said Jacobs, “this is a unique paradigm shift that will allow the Pacific Island Countries to meet their ambitious renewable energy targets over the next 5-10 years”.

The research, that is funded through the Pacific Partnership, supported by the governments of Australia (DFAT) and New Zealand (MFAT), will also help determine what has been holding back the growth of solar electricity in the Pacific Islands with specific focus on developing sustainable solutions