Funding for Energy Efficient and Renewable Energy Solutions
The Energy Smart Fund, herein after called The Smart Fund, is a government led initiative, funded by Inter-American Development Bank (IDB) to provide financing and technical support for Energy Efficient (EE) and Renewable Energy (RE) solutions to homeowners and businesses in Barbados.
- EE projects conserve the consumption of electricity or thermal energy by using energy efficient technologies, for instance, LED lighting, energy efficient appliances, variable speed devices among others.
- RE projects generate electricity or thermal energy by utilising renewable energy sources such as the sun, the wind, biogas or other renewable energy sources.
- The aim of the Smart Fund is to increase the use of feasible EE and RE technologies in order to reduce energy costs, enhance our energy security and sustain the environment.
Financing for Businesses
Technical Assistance Grants
Businesses can apply for technical assistance grants to fund pre-investment audits and studies to assess the feasibility of RE and EE solutions. The maximum advance under this facility is established at BDS$40,000 per business with a reimbursable contribution of up to 50% from beneficiaries.
Businesses are eligible for below market rate loans to implement Energy Efficient (EE) and Renewable Energy (RE) projects that are financially and technically viable. The maximum loan size will be BDS$1.5 million per applicant. The variable interest rate is currently 3.75% per annum on the reducing balance of the loan which may be repaid over a maximum period of 10 years.
Security is required, usually in the form of a legal charge over assets acquired with the proceeds of the loan and or any other collateral that might be deemed necessary.
Air Conditioner Rebates
The Air Conditioner (A/C) Rebate Trade-In Facility provides grant funding to businesses for new efficient and ozone depleting substance (ODS)-free Air Conditioners, once an old unit is disposed for each new unit supported. By working through selected retailers, each business will be allowed a cash rebate on a maximum of five A/C units with rebates not exceeding the lower of 50% of the cost of each new unit or BDS$2,000 per unit. This project will be launched as soon as the government institutes a policy to manage the safe disposal of ozone depleting gases in the old A/C units.
Assistance and Financing for Households
Cash Rebates on Hire Purchase
Under this facility consumers will benefit from cash rebates from selected retailers when they purchase approved EE appliances and other EE approved household devices. Rebates will be the lower of 20% of the purchase price or BDS$500 on each eligible transaction undertaken with approved Smart Hire Purchase Retailers.
Energy Efficient Lighting
The Energy Efficient (EE) Lighting Distribution Facility enables the distribution of free energy efficient lighting, by selected retailers, on a first-come-first serve basis to residential customers of the Barbados Light and Power Co. Ltd. This facility is expected to be launched as soon as a policy is in place for the safe disposal of environmentally unfriendly substances in the EE Lighting.
Air Conditioner Rebates
The Air Conditioner (A/C) Rebate Trade-In Facility will provide 50% cash rebates to households on new efficient and ozone depleting substance (ODS)-free Air Conditioners, provided an old unit is disposed of for each new unit supported. Each household is allowed a rebate from selected retailers, on a maximum of two A/C units with rebates not exceeding the lower of 50% of the cost of each new unit or $2,000 per unit. This project will be launched as soon as the government institutes a policy to manage the safe disposal of ozone depleting gases in the old A/C units.
For more details, please see the following documents:
Technical Assistance Facility
Smart Fund Loan Facility
- Guidelines for the Smart Fund Loan Facility
- Terms of Reference for Smart Fund Partners
- Approved Smart Fund Partners
- Letter of Intent
- Loan Template
Pilot Consumer Finance Facility
- Guidelines for the Pilot Consumer Finance Facility
- Pilot Consumer Finance Facility Application Form
- Pilot Consumer Finance Facility Terms of Reference
- EGFL Approved Smart Hire Purchase Retailers
Energy Efficient Lighting Distribution Facility
- Terms of Reference for Selection of Retailers
- Application Form for Retailers
- Technical Specifications for LEDs