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Solar Water Heater Framework 35,000 solar water heaters saved about 130 thousand barrels of oil with a value of 6.0 million BBD (about 3 million USD), amounting to about one third of domestic oil production in 2002. The corresponding carbon savings were 15,000 metric tons or 4.3 % of emissions from all Barbadian carbon sources, power and manufacturing (Perlack & Hinds 2008). Many opponents might argue that it is very costly to put incentives to support renewable energies, but as seen in Figure 23, the estimated cumulative energy savings are much higher than the costs of incentives. Nevertheless, it has to be pointed out that the solar water heater industry already started to grow quite fast before the homeowner incentive was introduced. So according to Perlack and Hinds (2008), it is not clear that tax incentives were entirely responsible for the high market penetration more than there are clearly free-riderships for tax deductions taken by homeowners who nevertheless would have installed a solar water heater. Extensive studies would have to be conducted to actually prove this. However, there was an income tax concession implemented in St. Lucia for some years and then repealed and according to D’Auvergne (pers. comm. 10 May 2010), it helped to create interest and would still be useful. He also states that it was not well published and to reintroduce this concession, it should be properly sized and clear and easy for people to understand. Figure 23: Estimated Cumulative Energy Savings and Tax Cost of Incentives2 Source: Perlack & Hinds 2008 2 From 1974 until 2002 62PDF Image | CARIBBEAN RENEWABLE ENERGY DEVELOPMENT PROGRAMME
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