A solar energy executive has rebutted Belco president Wayne Caines’ suggestion that lower-income electricity consumers could end up subsidising wealthier people who can afford to install solar panels.

Robbie Godfrey, chief executive officer of BE Solar, said solar generated only a tiny fraction of Bermuda’s overall power supply and claimed there were much greater, structural reasons for the growing energy cost pressure on the less well-off.

“The data does not support solar as the primary cause,” Mr Godfrey said. “Solar generates approximately 3 per cent of Bermuda’s total electricity.

“The structural cost pressure on lower-income customers comes overwhelmingly from declining overall grid sales, driven by a shrinking population, major hotels that have been offline for years, and an island that has become smarter and more energy efficient.

“When fewer customers use less energy with the same fixed infrastructure costs, bills rise. The honest answer to affordability is tariff reform: time-of-use pricing, community solar programmes that extend savings to those who cannot afford their own panels, and a transparent and independent analysis of what is actually driving demand decline.

“Restricting solar does not lower bills for the less fortunate. It simply leaves everyone on expensive imported fuel.”

Mr Godfrey was responding to comments made by Mr Caines on Tuesday evening, as Belco added its voice to the public debate over national energy sector policy.

The Government last month rolled back previous targets for the island to produce 85 per cent of its energy from renewable sources by 2035 and projected that the island would still be producing 93 per cent from fossil fuels in 2030.

Mr Caines said: “Affordability matters, but it cannot be achieved by shifting costs onto those least able to bear them.

“Every sector must carry its fair share, including solar PV generators. We cannot end up in a situation where those who can least afford electricity are subsidising those who can.

“All generators, including private solar PV companies, must be regulated to control costs and ensure the protection of the grid and Belco customers. A level playing field is not optional, it is essential.”

He added that no matter how much renewable energy infrastructure is built, Belco would need to continue to provide reliable base load electricity.

Belco was not against renewables, Mr Caines said, but “all generators must operate on equal footing, under the same regulatory framework”.

Mr Godfrey said BE Solar had no objection to “appropriate regulation of all grid participants”.

“A well-designed regulatory framework that genuinely contributes grid costs fairly is reasonable,” Mr Godfrey added. “What we would caution against is using the language of fairness to restrict competition and innovation, rather than to enable it.

“Time-of-use pricing, demand charges, and equitable grid access fees can achieve exactly what Mr Caines describes, everyone carrying their fair share, with a goal of delivering the cheapest, cleanest and most reliable energy to Bermuda.”

Mr Godfrey conceded that Bermuda would always need reliable back-up generation, but added that the definition of base load had changed rapidly and that Bermuda’s choices were broader that the ongoing energy debate in Bermuda would imply.

“Battery storage costs have fallen to the point where, according to Bloomberg NEF's most recent analysis, storage is now cheaper to build than a new LNG plant,” Mr Godfrey said.

“Belco's own 2024 preferred plan demonstrated that 82 per cent carbon reduction is achievable while maintaining grid reliability, without LNG.

“The real question is not whether base load is needed today, but whether committing to LNG infrastructure for the next 30 to 50 years is the right answer, or whether flexible storage, demand management, and grid modernisation can get Bermuda to the same, or better place, with far less risk and far more room to adapt.

“Two independent reviews using Bermuda's own data concluded it could. That conclusion deserves more than a reversal without new evidence.”