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4.3.4 Solar Water Heater Solar energy was spurred by technological improvements, the commercial availability and the waiving of import duties and consumption taxes on renewable energy equipment and materials since May 1999. In 2001, the government gave the impetus for solar water heaters as income tax allowance (Loy & Farrell 2005). According to Crispin D’Auvergne, Chief Sustainable Development and Environment Officer (pers. comm. 10 May 2010) of the Ministry of Physical Development, Environment and Housing, Sustainable Development and Environment Section, Department of Sustainable Development, Science and Technology/Ministry of Finance and Planning, this income tax allowance was only in place for 3-4 years. In 1993, Solar Dynamics gained a foothold in the St. Lucian market through Solar Dynamics (St. Lucia), a joint venture with Minvielle and Chastenet Ltd., which originally sold units for Solar Dynamics in St. Lucia. Trading arrangements between these regional sub-groupings has allowed Solar Dynamics Ltd. to gain easier market access. The company believes in consistent product quality wherever it is sold. To successfully implement the business in St. Lucia, personnel from Barbados were transferred in key areas of management, sales, and installation. Today the company is run by nationals who have been successfully taught the Solar Dynamics distinctive brand quality and their way of doing business (UNDP 2008). By 2007, Solar Dynamics had a market share of 70%, but then the company Ecosun entered the market and Solar Dynamics lost about 30% of their market share (Wilkinson pers. comm. 21 May 2010). According to D’Auvergne (pers. comm. 10 May 2010), there are about 7000-8000 solar water heaters installed in St. Lucia. Some companies, like Solar Dynamics are manufacturing, others assembling in St. Lucia, so even if there would be import figures available, an accurate number is difficult to obtain. In January 2005, GSEII announced a financing program for solar water heaters (Loy & Farrell 2005). Unfortunately, this project did not achieved the promised result in terms of providing finance through credit unions as a key means to grow the solar water heater number in St Lucia. Reasons for the unsatisfying performance were the insufficiently accurate modeling and analysis of the solar water heater market, as well as limited resources available for the preparatory phase constrained the depth of the analysis (Matteini pers. comm. 31 May 2010). Case Studies 52PDF Image | CARIBBEAN RENEWABLE ENERGY DEVELOPMENT PROGRAMME
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