The objective is to increase the use of viable RE and EE technologies in Barbados in order to decrease energy costs and increase the country’s energy security by reducing its dependence on fossil fuels, while helping to ensure a cleaner environment globally.
The financing window not only provides loan funding at an attractive rate for viable and sustainable projects but also provides grant funding to determine the technical and financial viability of proposals and to replace inefficient AC’s with energy efficient, ozone depleting substance (ODS) free AC’s.
The three (3) facilities:
Loan Facility – This is a $20 million facility which can provide loans up to a maximum of BDS$1.5 million, at an interest rate of 3.75 percent per annum, calculated on a reducing balance basis. Loan terms can extend to ten (10) years.
Technical Assistance – This is a $1.6 million facility which provided grant funding to applicants to conduct energy efficiency audits and renewable energy studies as well as to finance pilot studies. The maximum grant size under this facility is $50,000.
A/C Rebate Trade-In Facility – This is a $3 million grant facility which provides a 50 percent instant rebate for households and businesses to replace older air-conditioners with more energy-efficient, ODS free ones.
Smart Fund Technical Committee reviews applications to the Loan Facility and Technical Assistance Facility to assess their technical and economic viability.
Security is required, usually in the form of a legal charge over the assets which have been acquired with the proceeds of the loan and any other collateral that may be deemed necessary.