(CNS): Grand Cayman’s power provider has said it will not increase the rates it currently pays for solar energy generated by customers in its CORE programme. Responding to a statement by the Cayman Renewable Energy Association, CUC said it is not against rooftop consumer solar but it “does not support paying inflated prices for energy” from those rooftop producers and passing the costs onto its wider customers.

It argued that the present CORE rate of 15 cents per kWh for 5-10 kWh systems and 17.5 cents per kWh for 5 kWh and under provides a reasonable return.

In its statement, CREA said that CUC was creating the demand for CORE by controlling the access to the CORE capacity with limited, sporadic releases and then claiming that demand justified paying consumers lower rates than the true value of their solar energy.

But CUC claims it would “always make the case for solar rates that are beneficial to all parties: the installers, the purchaser of a rooftop solar system, electricity bill payers, and the general public”.

Responding to some of the points raised by CREA, CUC said that it was not the company’s intention to “participate in a public war of words” with the association but they wanted to “set the record straight where there has been a misrepresentation of the intentions and actions of” CUC.

The power company contends that the size of the rooftop solar market is constrained by grid stability and cost parameters and that OfReg has not challenged CUC’s approach.

“As the owner and operator of the grid under Licence, CUC has an obligation to ensure safe, reliable and affordable energy for all consumers. The company also argues that the estimated cost of electricity from a utility scale solar plant is in the 10 to 11 cents range per kWh, which is why it continues to advocate for more utility-scale renewable energy on the grid as it will bring positive benefits if planned and implemented properly.

“CUC is therefore keen to participate in the utility scale competitive bid process to be conducted by OfReg and hope that it will soon be released,” the release stated. CUC said it is a supporter and facilitator of renewable energy on the grid and is not a competitor to CREA or the solar installation businesses in the association.

According to CREA, CUC knows its current rates are not commensurate with the value consumers should be getting for their solar because the Value of Solar study, commissioned by OfReg and recently completed, quantifies what is and is not a subsidy.

“Predictably, CUC does not support the rate findings of this independent study, which is yet to be released to the public,” CREA said. “If CUC truly has the country’s best interest at heart over a desire to further their interests, they should explore every option to encourage competitive private sector-led installation and financing of renewable energy systems on residential and commercial properties.”

That includes supporting attractive rates of purchase to encourage solar installations in line with this study and the introduction of off-peak energy charges, CREA stated. It also called on CUC to remove the barriers to full capacity of consumer solar PV and other renewables.

CNS has contacted OfReg to request a copy of the completed Value of Solar study and we are awaiting a response.

See CUC’s statement below: