NHT embarking on solar drive to slash $287-million light bill

The National Housing Trust (NHT) aims to reduce its energy costs by $287 million by installing solar panels at 10 locations.

The initiative is part of the government’s push for sustainable development. The figure comes from adding the annual energy saving from each planned location.

The agency wants to hire a consultant from an engineering firm to conduct the assessment and installation. Consultants have until January 25 to submit bids to the NHT.

“The NHT requires a photovoltaic (PV) system installation team with consultants in mechanical, electrical, and plumbing to provide design, supply, installation, and maintenance services for PV systems at various NHT locations,” stated the tender document released this week.

The Financial Gleaner awaits a response from the NHT on its strategy to reduce its reliance on power from the utility provider, Jamaica Public Service Ltd. The NHT expects to spend $315 million on utilities this fiscal year ending March 2025, a $50-million increase from the previous year. While the exact breakdown of electricity costs was not disclosed, it likely accounts for the bulk of this expenditure, surpassing water and internet costs.

The 10 locations for solar installations include its head office and some regional offices across the island. Seven of the 10 locations are large offices, each expected to save the NHT upwards of $30 million annually. The remaining locations are set to each save under $10 million annually.

“The photovoltaic (PV) systems are intended to improve energy efficiency, reduce energy costs, and minimise the carbon footprint of NHT facilities, in compliance with the Government of Jamaica’s sustainable development goals,” stated the tender.

The NHT tender did not outline the estimated cost to fund the build-out of these solar plants. The tender did not outline the anticipated timeline for the installation of the solar panels. Most companies avoid fully going off the utility grid due to the high upfront cost of installing solar panels or another energy source. Consequently, firms opt to reduce their reliance on the grid in stages. NHT, however, can afford the investment. It is expected to earn $18.7 billion in surplus this fiscal year, down from $21.8 billion a year earlier.

The successful engineering firm will be required to conduct on-site visits, conduct technical solar designs, Prepare pre-tender estimates, supply and install the renewable energy solutions, obtain government inspection approval and/or other relevant approvals, provide post-contract services, among other things.

The renewable drive falls within the National Energy Policy (NEP) that outlines a strategy for increasing the use of renewable energy in both the public and private sectors. The Government also has a revised target that half the nation’s energy should come from renewables by 2030. The island is basically halfway towards that goal.

Since July, NHT contributors could access a renewable energy loan product of to retrofit their homes with smart energy solutions up to $1.5 million. NHT sees the value in adding solar to offset the reliance on the grid, such that it will embark on the journey itself.

“The services of an engineering firm is required to provide pre-contract and post-contract Mechanical, Electrical, Plumbing, and Fire Protection (MEP&F) engineering consultancy services for the supply and installation of the renewable energy solutions at the NHT offices islandwide,” stated the tender document released this week.

The locations for the solar installation include:

. NHT Head Office, Kingston: Energy cost savings of $50 million annually, with reduced CO² emissions of 95,000 metric tonnes.

. St Catherine Branch Office, Spanish Town: Energy savings of $44.1 million annually, with reduced CO2 emissions of 92,500 metric tonnes.

. NHT St Ann, Ocho Rios: Energy savings of $38.5 million annually, with reduced CO2 emissions of 56,340 metric tonnes.

. NHT Clarendon, May Pen: Energy savings of $38.5 million annually, with reduced CO2 emissions of 91,100 metric tonnes.

. NHT St James, Montego Bay: Energy savings of $35.25 million annually, with reduced CO2 emissions of 83,200 metric tonnes.

. NHT Unit Trust Building, Knutsford Boulevard, Kingston: Energy savings of $30.9 million annually, with reduced CO2 emissions of 93,860 metric tonnes.

. NHT Car Park, Kingston: Energy savings of $30 million annually, with reduced CO2 emissions of 90,000 metric tonnes.

. St Thomas Service Centre, Morant Bay: Energy savings of $7.4 million annually, with reduced CO2 emissions of 89,300 metric tonnes.

. St Elizabeth Service Centre, Santa Cruz: Energy savings of $6.7 million annually, with reduced CO2 emissions of 81,100 metric tonnes.

. Manchester Branch Office, Mandeville: Energy savings of $5.4 million annually, with reduced CO2 emissions of 81,100 metric tonnes.

business@gleanerjm.com