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6 Photovoltaic Framework Stand-alone systems for remote areas or small systems for water pumps or small lightening installations are still common applications of photovoltaic technologies. The use of those small systems is allowed as long as it does not interrupt the utility services. Some people even take the step and become self-sustaining because they do not want to depend on the utility and pay the high electricity costs. For example, a private person in St. Lucia got 9 panels of 210 Wp and a wind turbine of 2.2 kW and 8 large batteries, so in total he installed about 4 kW and lives off grid now and even produces more than his consumption (Preville pers. comm. 5 May 2010). In case of bigger installations, which would result in a significant revenue loss for the utility and resulting in tariff adjustments for remaining customers, there is generally a limit of 10% of the utility revenue (Hosein pers. comm. 6 May 2010). 6.1 Drivers for a Successful Market Establishment The most economically feasible form of photovoltaic installations however, is a grid connected system. Same as in Barbados with solar water heaters, the establishment of the photovoltaic business in Grenada was also driven by the private sector on state level. The core company put much effort to introduce the technology and got an agreement with the local utility company. After a learning process and many negotiations, the utility finally introduced a policy for grid connection of renewable energies, which opened the gate to commercialization. The government supported the private sector with a release from general consumption tax. Companies only pay a handling charge of 5-10% but no import duty. This cost benefit can be passed on to the customers. It is very important that the utility learns about renewable energy to convince them about their advantages and also how to handle the disadvantages. This can be done by operating pilot systems but also through supports from NGO’s and other associations. For example, BL&P became a member of the Solar Electric Power Association (SEPA) - previously called the Utility Photovoltaic Group (UPVG) - which has been a great source for information on the industry (Williams pers. comm. 25 March 2010). The international connections to Germany also helped GrenSol in the market establishment. Photovoltaic Framework 66PDF Image | CARIBBEAN RENEWABLE ENERGY DEVELOPMENT PROGRAMME
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