Total installed solar photovoltaic (PV) capacity in Bahamas was approximately 18 MW.⁸

By 2030, the Bahamas aims to achieve a solar energy production capacity of approximately 475MW as part of its goal to have renewables contribute 30% of its electricity needs.⁹¹⁰

• Fossil fuel – $0.105 $/kWh ¹¹
• Solar power – $0.09 $/kWh ¹²

• Oil: 99% ²
• Solar power: less than 1% ¹⁰

¹³¹⁴¹⁵

Overall, residents in Bahamas experience less than 24 hours of reliable electricity daily, especially during adverse weather conditions or system failures, due to frequent outages.

Residents may experience outages 4 or more times a day, especially during busy tourist seasons or adverse weather conditions, such as storms and hurricanes. In some regions, like Harbour Island, outages have diminished due to local generating stations, but they still occur when demand exceeds supply.

As of the end of 2022, there were 244 residential and 61 commercial solar panel installations in the Bahamas, mostly located on New Providence.¹⁶

¹⁶¹⁷¹⁸

Currently, there are two operational solar farms in the Bahamas: the Fairfield Solar Plant, which generates 9.5 MW, and a 4 MW solar plant commissioned by Gekabi Chub Cay Utilities.

Additionally, the Bahamian government is pursuing further solar initiatives, including a 390-kW solar-storage microgrid for Ragged Island and plans for solar projects on four Family Islands.

¹⁵¹⁹

A notable off-grid solar installation was completed on Ragged Island, which serves its 100 inhabitants. This project includes solar panels and battery storage, highlighting a successful model for off-grid energy solutions in small communities.

The influx of approximately 1 million tourists annually exacerbates energy demands, particularly during peak seasons. This seasonal variation necessitates additional energy resources, further driving interest in off-grid solar systems.

In general, the demand for off-grid solar systems is expected to grow significantly as more residents and businesses seek independence from the unreliable grid. The introduction of battery energy storage systems (BESS) further supports this trend by enhancing the reliability of solar power during periods of low sunlight or high demand.

¹⁸²⁰²¹

The current and projected demand for on-grid solar panels in the Bahamas is increasing due to several key initiatives and favorable policies.

The Lucayas Solar Power project, which includes the Fairfield Solar Plant with a 9.5 MW capacity, is a major step in expanding the country’s renewable energy capacity.

The Bahamian government has initiated the Family Islands Solarization Program, focusing on developing solar projects across four islands: Andros, Bimini, Eleuthera, and Inagua. This program aims to enhance energy access and reliability, indicating a strategic move towards increasing off-grid installations.

Additionally, the Bahamas’ net metering policy has incentivized residential and commercial customers to invest in solar technology by allowing them to sell excess energy back to the grid. The rise of prosumers is further driving demand for solar panels.

Large-scale projects like the Family Islands Solarization Program and the Thomas A. Robinson National Stadium Solar Canopy demonstrate the government’s commitment to achieving 30% renewable energy in the national mix by 2030.

• The average monthly salary in Bahamas is approximately $3,000. ²²
• Solar Engineer: the average monthly salary is approximately $3,767. ²³
• Solar Energy Installation Manager: the average monthly salary is approximately $5,360. ²⁴
• Solar Photovoltaic Installer: the average monthly salary is approximately $2,567. ²⁵

The current population of Bahamas is 401,997. ²⁶

Estimate for Factory Rent ²⁷

The average monthly rents for industrial warehouses in Bahamas vary depending on location and size, ranging approximately $40–$70 per square meter.

Industrial Electricity Rates ⁴

The average electricity price for businesses in Bahamas is approximately $0.337 per kWh for businesses as of March 2024.

Water Costs ²⁸

The price of water in the Bahamas is approximately $1.70 to $2.20 per cubic meter, depending on consumption levels.

Salaries and Wages ²³²⁴²⁵

Monthly salaries of workers in solar industry in Bahamas ranges from $2,567 to $5,360, depending on the position.

Rent for Office Space ²⁹

The average monthly rent for office space in Bahamas ranges approximately $38-$47 per square meter.

Insurance ³⁰

The average spending per capita for non-life insurance in the Caribbean is estimated to amount $357.50. in 2024.

^18313233

Energy Mix

The Bahamas primarily relies on imported fossil fuels for its energy needs. The country has set ambitious goals to diversify its energy sources, aiming for 30% of electricity generation to come from renewable resources by 2030. Current initiatives include integrating solar power and battery storage systems across various islands.

Key Institutions

The main institutions involved in the energy sector include:

• Bahamas Power and Light (BPL): The state-owned utility responsible for electricity generation and distribution.
• Grand Bahama Power Company (GBPC): A private utility serving Grand Bahama Island.
• Utilities Regulation and Competition Authority (URCA): The regulatory body overseeing the energy sector.

Infrastructure and Interconnections

The Bahamas consists of 16 isolated island grids, which presents challenges for energy distribution and reliability. The infrastructure is aging, with many components over 50 years old, leading to frequent outages and inefficiencies. Significant investments are needed to upgrade the transmission and distribution networks to support new energy technologies.

Export / Import

The Bahamas is heavily dependent on imported fuels for its energy generation, primarily diesel and heavy fuel oil.

Policy Goals

• Achieving 30% renewable energy by 2030.
• Enhancing energy efficiency and conservation measures.
• Promoting local participation in renewable energy projects.
• Developing a regulatory framework that supports independent power producers (IPPs) to sell electricity to the national grid.

¹⁸³⁴³⁵

Regulatory Framework – The Utilities Regulation and Competition Authority (URCA) plays a crucial role in overseeing the energy sector in the Bahamas. It is involved in mapping out and implementing renewable energy policies and programs alongside the Bahamas Power and Light Company (BPL) and government leaders. The regulatory framework includes provisions for net metering under the Residential Energy Self-Generation program, although there are ongoing discussions to clarify certain aspects and remove barriers to rooftop solar adoption.

Safety and Installation Standards – Solar installations must comply with safety regulations outlined in the National Electrical Code (NEC). This code mandates that only qualified personnel can install solar equipment, ensuring adherence to safety standards and manufacturer specifications. Installers are required to follow best practices to withstand extreme weather conditions typical of the Bahamas.

Training and Capacity Building – As part of its regulatory framework, the government is also focusing on training programs for local workers in solar technology installation and maintenance. This initiative aims to foster local participation in the renewable energy sector while ensuring that Bahamians are equipped with the necessary skills to support solar deployment.

¹⁸³⁶³⁷

IDB Invest Financing

The Inter-American Development Bank (IDB) has provided significant financial support for solar projects in the Bahamas. In March 2023, IDB Invest closed a senior loan of up to $11.2 million to Lucayas Solar Power Ltd. for the development of solar plants in Grand Bahama.

Family Islands Solarization Program

This program was launched by Bahamas Power and Light (BPL) with support from organizations like the Rocky Mountain Institute, aiming to develop solar energy projects on four key islands: Andros, Bimini, Eleuthera, and Inagua.

Reconstruction with Resilience in the Energy Sector

Following Hurricane Dorian, the Bahamian government signed a $9 million agreement with IDB to rebuild critical energy infrastructure while integrating solar technologies. This initiative aims to enhance resilience against climate impacts and improve local skills related to renewable energy services.

Gender Diversity Initiatives

In conjunction with financial support for solar projects, IDB Invest is promoting gender diversity in the solar sector by aiming for at least 10% female participation in non-traditional roles such as mechanical and electrical work within solar installations. This initiative includes training programs and recruitment strategies to empower women in the renewable energy workforce.

Tax Exemptions

The Bahamian government offers various tax exemptions for renewable energy projects, including solar installations. These exemptions may include:

• Import Duty Exemptions: Equipment and materials imported for solar energy projects can be exempt from import duties. This significantly reduces the initial costs for developers and homeowners looking to install solar systems.
• Business License Fee Exemptions: Companies involved in the production and installation of renewable energy technologies may qualify for exemptions from business license fees, further incentivizing investment in the sector.

^33383940

Lucayas Solar Power Project

• Total Investment: $15 million
• Location: Grand Bahama
• Project Components:
  • Fairfield Site: A 6 MW solar farm that will provide clean energy to the local grid.
  • Devon Site: A projected 5 MW solar farm, currently in planning stages, aimed at further boosting energy generation capacity on the island.
• Details: The combined capacity of 11 MW will generate enough electricity to power approximately 2,500 homes annually, reducing reliance on imported diesel and lowering greenhouse gas emissions. Commissioning of the project is anticipated in 2024.

Thomas A. Robinson National Stadium Solar PV Carport

• Installed Capacity: 925 kW
• Location: Nassau, New Providence
• Details: The solar photovoltaic (PV) carport installation at the National Stadium provides clean energy for the stadium’s operations, including lighting and cooling systems. The solar array is integrated with the existing infrastructure, using the carport structure to support both parking and energy generation. The project is operational since 2019 and saves approximately 400,000 liters of diesel annually, avoiding about 1,000 tons of CO2 emissions per year.

Family Islands Solar Projects

• Total Capacity: 27 MW
• Location: Various Family Islands including Exuma, Eleuthera, Abaco, and others.
• Details: The initiative is expected to supply power to thousands of households and businesses across the Family Islands, with an anticipated reduction in diesel consumption by around 5 million gallons annually. By reducing fuel imports and shifting to renewable energy, the Family Islands Solar Projects aim to lower electricity costs by up to 40% on the participating islands. The project will reduce carbon emissions by approximately 13,500 tons per year, supporting The Bahamas’ broader goals for sustainability and climate action.

Sky Solar & Power

• Headquarters: Nassau, Bahamas
• Website: https://www.skysolarpowerbahamas.com/
• Details: Supplies solar products and services in the Bahamas, focusing on residential and commercial solar solutions. They also provide ongoing maintenance services to ensure optimal performance and longevity of solar systems.

Solar Island Energy

• Headquarters: Exuma, Bahamas
• Website: https://solarislandenergy.com
• Details: Provides comprehensive renewable energy solutions including solar PV systems, wind turbines, EV charging solutions and energy efficiency upgrades for businesses in the Bahamas.

Bahamas Energy & Solar

• Headquarters: Nassau, Bahamas
• Website: https://bahamasenergyandsolar.com/
• Details: Bahamas Energy & Solar specializes in providing renewable energy solutions, focusing on solar power installations for residential, commercial, and industrial clients across The Bahamas.

Bahama Solar

• Headquarters: New Providence, Bahamas
• Website: https://bahamasolar.com/
• Details: Bahama Solar offers a range of solar energy products and services, including solar panel installations, energy storage systems, and maintenance, to help Bahamian businesses and homeowners transition to sustainable energy.

Eco Energy Bahamas

• Headquarters: Nassau, Bahamas
• Website: https://www.ecoenergybahamas.com/
• Details: E co Energy Bahamas provides renewable energy solutions with an emphasis on solar power, aiming to offer cost-effective and sustainable alternatives to traditional energy sources.

Enlighten Energy

• Headquarters: Nassau, Bahamas
• Website: https://www.enlightennrg.com/
• Details: Enlighten Energy focuses on delivering solar energy solutions that improve energy efficiency and promote sustainability in The Bahamas, offering customized designs for residential and commercial solar systems.

Smart Energy Bahamas

• Headquarters: Nassau, Bahamas
• Website: https://smartenergybahamas.com/
• Details: Smart Energy Bahamas specializes in providing solar energy systems, energy audits, and energy-saving solutions to residential and commercial customers.