AES partners with bank to offer solar energy deal

Alternative Energy Systems (AES) has partnered with the Bank of Butterfield to offer Bermuda’s first financing deal for PV solar energy systems.

Customers can install a SunPower system at their home or business either through a loan added on to their mortgage or as a separate agreement through the bank’s lending department.

The partnership was announced yesterday.

The firm says householders can save $45 a month by installing (PV) solar panels.

Rebates

The average cost of a five kilowatt (5 KW) solar energy system is $40,000.

But Government is offering islanders rebates of $1 per watt on installation of PV solar energy systems. This equates to a $5,000 rebate for 5 KW or $2,000 for 2KW, therefore reducing the cost of a loan.

At a cost of $35,000, payments on a standard 5 KW system would be between $230-50 a month, over 20 years.

This can be added to your mortgage payments or taken out as a separate loan by new bank customers.

Tim Madeiros, AES CEO, said if someone had an average monthly BELCO electricity bill of $300, by installing a standard 5KW system this would save them $45 a month straight away.

“By installing this system you completely negate your BELCO bill,” he said.

“The loan payment would be $255 but you’re not buying electricity from BELCO anymore — you own your own power.

“The customer can get an immediate saving of $45 a month. The amount will vary however, according to the mortgage term (length of loan) and size of system.

“The bigger you go the more you save, but generally the average size system (5 KW) will save that.

“Solar energy offers a level cost on your energy for at least 25 years.”

The standard 5 KW system has 22 panels which can be installed on the roof of your home or ground-mounted. Installations need Planning permission.

In the three years since he started AES, Mr Madeiros has installed 150 KW worth of PV solar energy panels, but customers have mainly been business professionals or companies, such as Lindo’s grocery store (see our previous story on www.bermudasun.bm).

“These people have found the financial returns very attractive but they have had the capital to invest.

Affordability

“What we are trying to do with the Bank of Butterfield is make the financial benefits available to the average Bermudian, who doesn’t have the money upfront.

“This will now allow a greater number of Bermudians to participate in renewable energy at no additional cost.

“Home and business owners can pay off a loan to eventually own their energy and significantly reduce or completely eliminate their electricity bill.”

Sean Lee, Bank of Butterfield executive vice president/head of retail banking, said: “We wanted to come up with something affordable for the average Bermudian couple and AES has a 25-year warranty backed by SunPower in the US — the panel producers.

“We have structured the loan so that, generally, customers will pay no more than they currently do for their electricity each month.

“We believe this is a win-win for Bermudians and we’re pleased to be partnering exclusively with AES on this initiative.”

He said BELCO’s move to net metering had created the opportunity to launch the partnership, as the electricity company can now measure the amount of energy each customer is putting back into the grid.

He added rising oil/fuel prices in the future will make renewable energy systems even more cost-effective through greater savings.

“Tim’s numbers are based on energy prices not going up, so when they do, your savings will increase,” said Mr Lee.

Mr Madeiros has calculated that if oil prices rise again to $130 per barrel with resulting energy costs returning to 45 cents per KWH (kilowatt hour), this would result in savings of $85/90 per month.

He also gave an example of the potential savings available.

“I’ve got two bills from a client from March of last year and this year on a 10 KW system,” said Mr Madeiros.

“Last year they paid $452 in electricity but this year they actually received a credit of $302 from Belco.

“One of Bermuda’s natural resources is its sunny climate. The island is going through tough economic times but homeowners can draw on one of Bermuda’s natural resources and save money immediately.”

Diligence

He added customers could be reassured the Bank of Butterfield had “done its due diligence” in its financial and technological research into AES.

“Customers can have peace of mind that someone has done their homework,” said Mr Madeiros.

An installation first requires a site assessment. A proposal is then submitted to the client, who fills out a Bank of Butterfield solar panel financing application. Once approved, an installation takes an average two weeks.

Walter Roban, Minister of Environment, Planning and Infrastructure Strategy, said: “We embrace financial incentives that provide reasonable returns on investment for energy efficiency and renewable energy projects and applaud AES and Butterfield for coming together on this deal.”

Contact Tim Madeiros of AES on 505-0804 or [email protected].