The Bermuda Environmental Sustainability Taskforce is deeply concerned by the new electricity rate structure announced by Belco and approved by the Regulatory Authority. While the changes have been presented as improving transparency and fairness, they risk delivering exactly the opposite outcome for Bermuda's clean energy future.

The dramatic increase in facilities charges for customers with rooftop solar fundamentally changes the economics of renewable energy investment. For many homeowners and businesses, the additional fixed costs will significantly lengthen the payback period for solar installations and may make future projects financially unattractive.

At a time when Bermuda should be accelerating its transition to renewable energy, these changes risk slowing or even reversing solar adoption across the island.

This is not simply an issue for existing and prospective solar owners. It is an issue for every Bermudian who wants a cleaner environment, greater energy security and protection from volatile international fuel prices.

Every rooftop solar installation reduces Bermuda's dependence on imported fossil fuels. Every kilowatt-hour generated locally is one that does not require imported oil to produce electricity. Every investment in renewable energy moves Bermuda one step closer to energy independence and helps reduce greenhouse gas emissions.

By making rooftop solar less economically viable, the new rate structure risks locking Bermuda into continued dependence on imported fossil fuels for decades to come. Rather than encouraging local clean energy production, it strengthens reliance on an energy model that leaves Bermuda exposed to global fuel price shocks and undermines the island's climate commitments.

The policy also threatens Bermuda's growing renewable energy sector. Solar companies have invested in skilled employees, training, equipment and local expertise.

If demand for rooftop solar declines significantly because the financial case no longer makes sense, those businesses could be forced to reduce operations, resulting in the loss of high-quality local jobs and technical expertise that Bermuda can ill afford to lose.

Perhaps most importantly, investment in rooftop solar keeps money circulating within Bermuda's economy. When families install solar panels, they invest in local contractors, electricians, engineers and service providers. Once installed, the electricity generated is effectively produced on the homeowner's roof rather than purchased through imported fuel.

In contrast, every dollar spent on imported fossil fuels leaves Bermuda's economy. While Belco provides an essential public service, its parent company is foreign-owned, meaning a portion of the financial returns generated by the electricity system ultimately leaves the island. A stronger local renewable energy sector keeps more economic value, employment and investment within Bermuda.

Best also questions whether the new facilities charges are genuinely cost-reflective. Under the revised structure, a homeowner with a small solar array exporting very little electricity may pay the same facilities charge as someone with a much larger installation exporting substantially more energy to the grid.

Meanwhile, approximately 209 commercial demand customers consume around 40 per cent of Bermuda's electricity yet reportedly pay comparatively lower facilities charges despite placing far greater demand on the electricity network.

If the objective is fairness, charges should reflect actual use of the grid — not broad customer categories.

Transparency means more than redesigning electricity bills. It requires a clear explanation of how charges have been calculated and confidence that every customer is contributing fairly based on the costs they impose on the system while recognising the benefits they provide.

Best calls on the Regulatory Authority and Belco to reconsider the facilities charge for distributed renewable energy customers and undertake a transparent public review of its impact on Bermuda's clean energy goals, local employment and long-term energy security.

Bermuda has a choice. We can encourage local renewable energy, create skilled jobs, retain more wealth within our economy and reduce dependence on imported fossil fuels. Or we can adopt policies that discourage investment in solar, weaken a growing local industry and delay the transition to a cleaner, more resilient energy system.

Best believes Bermuda deserves an electricity policy that supports — not penalises—the individuals and businesses investing in the island's sustainable future.

• Kim Smith is the executive director of the Bermuda Environmental Sustainability Taskforce