Utilities Finance Rooftop Solar Through Customer Bills
Businesses in Barbados, Belize and Jamaica can look to utility bill repayment as a new way to fund solar and efficiency equipment.
Updated on Nov. 4, 2026 in Utilities
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Would you install rooftop solar if your utility let you repay it on your electric bill?
The Caribbean Development Bank and the Green Climate Fund signed a Funded Activity Agreement for the Investment in Utility Scale Programme, unlocking US$68.7 million for households and businesses in Barbados, Belize and Jamaica. Utilities will provide upfront financing for rooftop solar, solar water heaters, efficient air conditioning and LED lighting, with customers repaying through monthly electricity bills.
Why it matters
The model shifts upfront capital costs for efficiency and renewable equipment onto utilities, which recover them through bills, changing how energy-related investment is financed for businesses and households in these markets. The move responds to heavy reliance on imported fossil fuels, which exposes consumers to volatile prices and keeps the power sector a major emissions source.
The agreement unlocks US$68.7 million, of which US$26.74 million is GCF financing split between US$20.8 million in concessional loans and US$5.94 million in grants. CDB adds US$16.2 million in loans plus in-kind support, and the three national utilities will invest roughly US$25 million in smart meters.
The players
Caribbean Development Bank (CDB)
A regional multilateral development bank that lends to and finances projects across its Borrowing Member Countries in the Caribbean, and serves as the Accredited Entity for this programme.
Green Climate Fund (GCF)
A global climate finance mechanism under the UN framework that channels concessional loans and grants to low-emission and climate-resilient projects in developing countries.
Barbados Light & Power Company Limited
The principal electricity utility in Barbados, operating the island's power generation and distribution system and serving as a national Executing Entity.
Belize Electricity Limited
The national electricity distribution utility in Belize, serving as an Executing Entity for the programme.
Jamaica Public Service Company Limited
Jamaica's principal electricity utility, serving as a national Executing Entity and installing the programme's customer-premises technologies through its billing relationship.
The details
Under the IUS model, utilities finance eligible technologies installed at customers' premises, including rooftop solar photovoltaic systems, solar water heaters, energy-efficient air conditioning and LED lighting, installed by qualified service providers. Customers repay the upfront cost through their monthly electricity bills, which moves the capital burden from the customer to a recovery schedule tied to the utility account. The Caribbean Development Bank delivers the programme as the Accredited Entity, while Barbados Light & Power Company Limited, Belize Electricity Limited and Jamaica Public Service Company Limited serve as national Executing Entities.
Timeline
Agreement published by CDB and GCF on 3 November 2026.
First phase lays the foundation for scaling the IUS model across CDB's other Borrowing Member Countries.
Market Landscape
The programme applies the on-bill financing approach, in which utilities carry upfront costs of customer-premises equipment and recover them through bills, to three Caribbean power markets dependent on imported fossil fuels. It also sits inside the Green Climate Fund's concessional lending model, offering a template for the other CDB Borrowing Member Countries.
Operators in energy-intensive sectors across Barbados, Belize and Jamaica should monitor whether utility on-bill financing becomes available for solar water heaters, efficient cooling and LED retrofits, since that would shift upfront capital needs. Businesses that buy or install these systems may find the procurement and billing terms changing, so finance teams should review how repayment through electricity bills would affect their operating costs.
The takeaway
The main operating insight is that financing for efficiency and rooftop solar is moving onto the utility bill, which turns a capital purchase into a recurring operating line. Operators should track when the programme's installer qualification and eligibility rules are published, and model how a bill-based repayment would compare with their current equipment financing.
Further reading
For broader context on how power providers are changing their business models, see the Utilities section.
Live Poll
Would you install rooftop solar if your utility let you repay it on your electric bill?
