Interest-free lending programs for citizens, condominiums and housing cooperatives for the purchase of power generating equipment have been launched in Ukraine

On July 20, the government launched initiatives to provide interest-free loans to citizens, as well as the Affordable Loans 5-7-9 program for condominiums and housing cooperatives to finance the purchase of equipment that uses alternative energy sources and energy conservation systems.

This was reported by the Ministry of Economy, UNN reports.

Details

Since July 20, a program has been in place for private households to receive soft loans at 0% interest for the purchase and installation of solar panels, energy storage systems and wind turbines in private households. The government will compensate the interest rate on such loans for 10 years, with the loan amount reaching UAH 480 thousand for the purchase and installation of a hybrid power supply system.

As for condominiums and housing cooperatives, they are given the opportunity to participate in the state support program “Affordable Loans 5-7-9%”, where they can now finance the purchase and installation of generating units from alternative energy sources, electricity storage systems and auxiliary equipment. Loans are provided for up to UAH 5 million for up to 5 years at 7% per annum. This program works in conjunction with the Grindim program, under which condominiums and housing cooperatives can receive up to 70% of the project cost after its implementation.

To participate in the Affordable Loans 5-7-9 program, condominium or housing cooperative management must submit an application to one of the 46 partner banks of the Entrepreneurship Development Fund and provide a set of documents required by the bank.

The government is doing everything possible to restore the power generating facilities that were destroyed after massive rocket attacks by Russia. At the same time, we suggest that owners of private and multi-apartment buildings take advantage of preferential programs and increase their energy independence. The development of alternative energy generation sources should become a part of the new Ukrainian energy system, and such programs will definitely contribute to this. Now households, condominiums and housing cooperatives will have affordable tools to build their own energy capacities

“Increasing the capacity of distributed electricity generation is important to meet the urgent needs of consumers. This is the way to our energy sustainability in general. Therefore, the state creates conditions for the rapid development of distributed generation with a minimum number of bureaucratic procedures and opportunities to attract financing for such projects,” added Energy Minister Herman Halushchenko.

Loan products for individuals are already available at the following banks: JSC CB PRIVATBANK, JSC OSCHADBANK, JSC UKRGASBANK, JSC SENS BANK, JSC CB GLOBUS.

Loan products for condominiums and housing cooperatives are available from the following banks: JSC CB GLOBUS, JSC SKY BANK, JSC OSCHADBANK, PJSC BANK VOSTOK, JSC CB PRIVATBANK, JSC SENS BANK, JSC UKRGASBANK.

The number of banks offering these loan products will increase every week. The Entrepreneurship Development Fund is already actively working to raise international funds to ensure stable financing of programs that are key to the energy independence of households, condominiums, housing cooperatives, and the country as a whole.

Yulia Svyrydenko emphasized the recent expansion of the government's Affordable Loans 5-7-9% program for businesses aimed at increasing energy opportunities. For example, last week Sense Bank provided the first loan to a Ukrainian manufacturer to build a 1 MW solar power plant in Chernivtsi region, which will be able to supply approximately 360 apartments. The annual capacity of the plant will be 1150 MWh. The total amount of the loan is UAH 14.2 million with a five-year maturity.

Ukrgasbank also issued the first investment loans to two producers from Vinnytsia and Cherkasy regions for the purchase of cogeneration units with a total capacity of 2.5 MW, totaling over UAH 26 million.

Since July 20, businesses have been able to receive loans worth more than UAH 150 million. In July, 19 leading Ukrainian banks signed a memorandum on preferential lending for energy infrastructure restoration projects. Applications for such loans are processed on a priority basis, and can range from EUR 500 thousand to EUR 25 million for a period of 5 to 7 years. The base interest rate for the first year for loans in national currency is 13.5% per annum, with a variable rate in subsequent years up to UIRD12M + 3%.

Energy recovery loans are secured by the purchased equipment, which simplifies the lending procedure and makes it more affordable. The NBU has also made a number of decisions to increase the liquidity of energy equipment and optimize the risk assessment of investment projects to increase the availability of financing.

Recall

As reported earlier, the Government has already developed and partially implemented a number of measures aimed at improving the country's energy sustainability, which should stimulate both citizens and businesses.