PV financial rebate scheme launched for commercial sector |29 November 2014

In support of the government’s 2020 target of generating 20% of the country’s energy from renewable sources rather than relying entirely on petroleum imports, the second photovoltaic (PV) financial scheme for the Seychelles commercial sector has been officially launched.

The scheme, a collaboration between the Seychelles Government (GOS), United Nations Development Programme (UNDP) and the Global Environment Facility (GEF) – GOS-UNDP-GEF – was launched at the Coco d’Or Hotel earlier this week.

It follows the introduction in 2013 of the financial rebate scheme for domestic buildings and tariffs.

The aim of the rebate scheme is to make the purchasing of PV panels become more affordable for the Seychelles commercial sector, to further increase solar-generated electricity, and in turn reduce the consumption of fuel-generated electricity in Seychelles.

It is being provided under the GOS-UNDP-GEF grid-connected rooftop photovoltaic system project (PV project) as an incentive to encourage the use of PV systems within the commercial sector.

The event was attended by the Minister for Finance, Trade and Investment Pierre Laporte and representatives from the UNDP, the Ministry of Environment and Energy, the Seychelles Energy Commission, the Public Utilities Corporation, the  Seychelles Chamber of Commerce and Industry, PV installers and other key stakeholders.

Minister Laporte expressed his concern at the cost of electricity in Seychelles which he said has an impact on the economy and on doing business.

He said if we need to reduce such impacts we need to go commercial with energy from renewable sources.

He urged all concerned to speed up the project.

He also informed them that his ministry will provide policy support as much as it can. To this effect, he said the government is not against subsidies but against widespread ones. So it can subsidise where needed with the aim of bringing support for way forward.

He told all that both his ministry and stakeholders need to find a way together, simple ways to move forward towards the implementation of the photovoltaic project without being hindered by complicated laws.

The UNDP resident representative Simon Springett expressed his appreciation on the launch of the next phase of the rebate scheme and wished for its successful implementation.

As for Dominic Rassool, project manager of GOS-UNDP-GEF PV project, he said when the scheme for the domestic market was launched in 2013, capital expenditure was enormous for some people. From feedback, they reduced payback to below five years. This was shown through a presentation on the PV market.

Seychelles is more than 90% reliant on imported oil for its energy needs, which is of significant economic and budgetary cost, and the single largest contributor of greenhouse gases in the country. Fuel demand continues to increase as a result of continued expansion of the electricity distributing system, the rising standard of living and increased foreign investment projects.  Seychelles has great potential for replacing some of the current oil-generated electricity with solar energy systems.