Timor-Leste solar thermal storage cost reimbursement

High electricity costs and readily available solar radiation mean that the average payback period for a rooftop photovoltaic (PV) solar energy system in Timor-Leste is only 1.5 to 3 years instead of the global average of 6-10 years. Transitioning to solar can also help the country meet environmental commitments.

More than 75% of oil imports in Timor-Leste are used for electricity production across the country and around 90% of the sector's operating costs are fuel costs associated with power generation. The Government of Timor-Leste intends to replace part of this high-cost generation by more cost-efficient solar power.

A key objective is to ensure that the imple-mentation of the government's rural energy programs provides equitable distribution of benefits. In Timor-Leste the Secretary of State for Energy Policy is responsible for the design and implementation of the government's rural energy program.

Timor-Leste has a high-quality solar resource. The global horizontal irradiance in Dili is higher than on the east coast of Australia, where the solar market is mature and installation costs are higher. The cost of electricity in Timor-Leste for commercial and industrial consumers is high compared to ASEAN countries.

In the context of Timor-Leste, part of the policy is promoting the use of renewable energy resources that are indigenous to rural locations and are environmentally benign. Another key part is promoting programs that replace fuel-wood with modern liquid fuels that are cleaner to handle and produce fewer harm-ful emissions.

MDF research found that lenders in Timor-Leste are unwilling to lend to small and medium sized enterprises due to levels of default, perceived risks, and the dificulty of securing collateral. Evaluate the upfront costs of installing solar panels versus long-term savings. Consider financing options to determine overall economic viability.