Wigton powers up
Solar leasing shines in diversification move
WIGTON Windfarm, is focusing on diversification, with new solar initiatives playing a key role in its strategy. Deputy CEO Michelle Chin Lenn announced that the company is expanding beyond wind farm operations into solar projects, including engineering, procurement, and construction (EPC) services.
At the company’s annual general meeting at the AC Hotel in St Andrew last Friday, Chin Lenn detailed two projects currently under construction — the National Irrigation Commission’s Essex Valley solar and battery project and the Sangster International Airport solar and battery project. Both projects are expected to be completed by the end of the financial year.
“We’re implementing these through our joint venture with IAC for the solar projects. At the end of the period, we will get a share of the profits from these projects, and you will see them reflected in the financial statements,” Chin Lenn told shareholders.
Wigton Energy is also moving into solar leasing, providing clients with a financing model that allows them to pay for energy installations over a 10-year lease period. This option eliminates the need for upfront payments, making solar energy more accessible to businesses.
“We currently have two clients,” Chin Lenn said. “One project for Jamaica Inn was completed last November, and we’ve started collecting monthly payments. We also signed an agreement for a rooftop solar project at Carreras’ new headquarters, which will be finished by the end of this month, and we’ll begin collecting lease payments.”
Wigton is reviewing contracts to offer similar lease arrangements to commercial clients with energy needs of 50 kilowatts and above. This aligns with the company’s focus on renewable energy solutions at both the utility and commercial levels. Wigton’s transition from wind to broader renewable energy solutions is reflected in its recent approved name change from Wigton Windfarm to Wigton Energy, though the change is yet to take . The rebranding indicates the company’s effort to diversify its portfolio, with solar energy and electric vehicle (EV) opportunities being areas of interest. The company’s strategy is built around five key pillars aimed at ensuring profitability. This includes adopting new technologies and improving processes.
“We want to be efficient in all we do,” added CEO Gary Barrow. “We want to run the most efficient renewable energy plant in Jamaica and the Caribbean, and that means using the latest technologies available.”
Wigton has received a new generation licence to repower its operations at Wigton Phase 1, adding 20.7 megawatts of capacity.
For the year ended March 31, 2024, Wigton Windfarm reported total revenues of $2.37 billion, a 6.7 per cent decrease from the previous year’s $2.45 billion. This was due to lower wind production caused by weaker wind conditions. Despite this, Wigton posted a net profit of $839 million, an increase of $530.4 million over the prior year. Barrow attributed the profit growth to operational management and a reduction in the income tax rate for renewable energy companies.
“The overall net profit was due to good operational management by the Wigton team and the application of an income tax rate of 25 per cent as of the 2023 tax year following the announcement by the finance minister that the income tax rate applicable to entities with more than 75 per cent of their business in renewable energy would be adjusted to 25 per cent down from 33.3 per cent,” Barrow said.
Wigton Energy continues to explore new opportunities in the renewable energy market. The company’s diversification efforts, including its move into solar and exploration of the EV market, are expected to maintain its presence in Jamaica’s renewable energy sector. With a focus on efficiency, technology, and expanding its energy offerings, Barrow shared that Wigton Energy is positioned to support Jamaica’s goal of generating 50 percent of its energy from renewable sources by 2030.