Ascendant Group has revealed it may have to reassess the future of its loss-making renewable energy company, PureNERGY, which finished last year nearly $1.4 million in the red.On top of the 2011 loss, PureNERGY, a sister company of Belco, made a loss of $405,276 in 2010 and a loss of $239,535 in 2009.PureNERGY’s sales last year totalled $106,000 compared to $515,250 in 2010.“Although recent announcements regarding financing, tax relief and other incentives for small-scale renewable energy systems are encouraging for PureNergy, management will reassess the operation of this company during 2012, if these do not result in opportunities,” Ascendant said in its 2011 earnings report last week.An Ascendant spokeswoman told The Royal Gazette that PureNERGY had been affected by the economic downturn.In 2011 she said Ascendant recognised that the market was soft and in response downsized to trim costs and re-evaluate the market and PureNergy’s role in it.“As we have a new president and CEO of Ascendant arriving, determination of next steps will obviously involve and be influenced by his views.,” said Linda Smith, senior vice-president, corporate relations. “The challenges are definitely the economy, soft market and still-high cost with long returns-on-investment as it relates to renewable energy installations.”Ms Smith said it’s a relatively small market, with an estimated 30 projects in 2011, and several companies competing.However, Tim Madeiros, founder and CEO of Alternative Energy Systems, says his company has managed to do well despite the downturn.The company has said it saw 38 percent growth in the first quarter of 2011 over the same period over last year and has won some major commercial installations, including Lindo’s and Gorham’s photovoltaic solar energy systems.“Starting a new industry at the beginning of a recession is challenging,” Mr Madeiros said. “However, with a strong engineering background, superior customer service, partnerships with those who offer the most advanced technology and good prices, a solar power company in Bermuda can be successful.“I have spent a great deal of time educating both consumers and companies about the benefits of solar power and I think what has worked for AES is that we were first to market with a number of initiatives such as bank financing and a solar starter kit, which helps people get their foot in the door to take advantage of solar power at an affordable price.”He added: “We’ve been innovative in a new industry with both technology and installation methods. While there is still more work to be done, a solar company can be successful in Bermuda if the right components of the business are there.”PureNERGY is a Certified Solar Photovoltaic System Installer and Certified Solar Water Heater Installer, approved to participate in the Government’s rebate Initiative — worth up to $5,000.“PureNERGY Renewables has, since its inception, focused on the delivery of customised renewable solutions to meet the needs of commercial and residential customers,” a spokeswoman told us. “The team is currently working on projects involving primarily solar photovoltaic and solar hot water technologies for such applications as powering critical loads in homes and offices, as well as to heat outdoor spas and circulate the water in swimming pools. Additionally, PureNERGY proposals have been requested by a number of interested individuals who saw our solar pool pump display during the 2012 Earth Hour Observance.According to PureNERGY, its solar-energy system for a small home would cost $35,000, result in about a $250 monthly reduction in electrical costs and average yearly savings of $3,000, plus the owner would then qualify for a Government rebate of $5,000.PureNERGY’s solar-electric swimming pool pump would cost an average of $9,500, result in about $1,300 annual savings on your electric bill, and take 7.3 years to recover your investment.PureNERGY’s losses are despite the fact solar power is being adopted in Bermuda at an increasing rate, with the number of applications for solar developments doubling year-on-year.In January Government said 51 applications were made for solar developments in 2011, that’s more than four times more than were submitted in 2009.Government has put forward numerous incentives to encourage the adoption of small-scale renewable energy systems, including a solar panel rebate scheme and zero-rate import duty on items for use in harvesting power from renewable sources.Another notable step was Belco’s Interconnection Policy, which allows members of the public to put excess energy back into the electrical grid, and be paid for it.Belco has said that there were currently 43 customers taking part in the scheme, an increase of 23 in the last year.