Renewable Energy

The objective of the Fund is to increase the use of viable RE and EE technologies in Barbados in order to decrease energy costs and increase the country’s energy security by reducing its dependence on fossil fuels, while helping to ensure a cleaner environment globally. More infor mation about the Barbados National Energy Policy and the role of the ESF in the attainment of its goals can be found here.

The financing window not only provides loan funding at an attractive rate for viable and sustainable RE and EE projects but also provides grant funding to determine the technical and financial viability of proposals and to replace inefficient air conditioners (Acs) with energy efficient, ozone depleting substance (ODS) free ACs.

• Loan Facility – This facility provides loans up to a maximum of $2 million, at an interest rate of 3.75 percent per annum, calculated on a reducing balance basis. Loan terms can extend to ten (10) years.
• Technical Assistance – This facility provides grant funding to applicants to conduct energy efficiency audits and renewable energy studies as well as to finance pilot studies. The maximum grant size under this facility is $50,000.
• Loan Refinancing Facility – The loan refinancing facility provides businesses with the opportunity to refinance loans held with local financial institutions for completed Solar Photovoltaic (PV) projects that are awaiting grid interconnection. Loans can be up to $3 million and will be at an interest rate of 3.75 percent per annum, calculated on a reducing balance basis.  The loan repayment period will be up to 10 years, extendable to a maximum of 15 years on a case-by-case basis.
• A/C Rebate Trade – In Facility – This facility provides up to a 50 percent instant rebate for households and businesses to replace older air – conditioners with more energy – efficient, ODS free ones.

The Smart Fund Technical C ommittee re views applications to the Loan Facility and Technical Assistance Facility to assess their technical and economic viability.

• Security is required, usually in the form of a legal charge over the assets which have been acquired with the proceeds of the loan and any other collateral that may be deemed necessary.