Financing Domestic Rainwater Harvesting in the Caribbean

Domestic rainwater harvesting (DRWH), an old technology, is playing a key role in meeting some objectives of the UN “2030 Agenda for Sustainable Development” and building resilience to climate change, particularly in the Caribbean. DRWH projects can be implemented through self-financing, government subsidies, and micro-financing or by external agencies. Most recent promotion initiatives of DRWH have emphasized funding by external agencies, often ignoring the potential financial contributions of beneficiaries. Regional experiences have shown that, generally, the high initial capital costs for DRWH systems is a major constraint. However, in some cases, success in DRWH is possible through self-financing. This study reviews the experiences of some DRWH projects or by external agencies to determine a suitable financing mechanism. This paper shows that households can self-finance DRWH systems if payments are based on 5% of household income and interest rates are less than 5%, It concludes that the product/business cycle pattern of development adequately describes the development of DRWH in some parts of the Caribbean. It is recommended that such a model should be considered in designing DRWH projects through strategic partnerships of the beneficiaries with between local and international NGOs, community based organisations and domestic financial institutions like credit unions.