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Table 3: Solar Water Incentives in Barbados 1993 Cut of Homeowner Tax Elimination of income tax deduction Case Studies Incentives Description 1974 Fiscal Incentive Act of 1974 Elimination of import tariffs on raw materials to manufacture solar water heaters Imposition of consumption tax on electric water heaters 1980-1992 Homeowner Tax Benefit Income tax deduction (allowed homeowner to claim the cost of the solar water heater on his income taxes up to 3500 BBD) 1996 Re-Installment of Homeowner Tax (amended) Home improvement tax deduction (allowing homeowners an annual deduction up to 3500 BBD for mortgage interest, repairs, renovation, energy or water saving devices, solar water heaters, and water storage tanks) In addition to Incentives Government purchased a significant number of solar water heaters for housing development projects Source: Perlack & Hinds 2008, Headley 2001 In 2001, Barbados accounts for more than 60% of the solar water heaters in the Caribbean region and is responsible for about 80% of manufacturing (Ministry of Physical Development Environment 2001). By the end of 2007 the number of solar water heaters produced outside of Barbados was assumed to be 10,000 per year (Energy Policy Committee 2006). Once the market is mature, it is also able to export its technology. Barbados industry made indeed successful steps beyond the island’s border. Other main markets besides Barbados are St. Vincent, St. Lucia, Grenada, Antigua and Dominica (Husbands pers. comm. 24 March 2010, Jordan pers. comm. 26 March 2010). Aligning with the different islands solar water heaters are basically sold by distributors with higher purchase rates of 12-15% (UNDP 2008). Over the years, Barbados has also tried to encourage other Caribbean islands to follow its lead in embracing solar water heating. Institutions such as the Caribbean Hotel Association and the Caribbean Tourism Organization are trying to encourage hotels in the region to use solar water heating and benefit from using this clean technology (Ministry of Physical Development Environment 2001). 36PDF Image | CARIBBEAN RENEWABLE ENERGY DEVELOPMENT PROGRAMME
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