Ukrainians and businesses will be able to get preferential loans for renewable energy shutterstock

Ukrainians and businesses will be able to get preferential loans for renewable energy

Anna Velyka

In this way, entrepreneurs and citizens will have the resources and opportunities to provide themselves with electricity in conditions of an energy crisis

The Government has approved the Procedure for Providing Financial State Support to Individuals Installing Alternative Energy Generating Units in Their Own Households. A 0% interest rate loan program will be available for citizens. Also, preferential loans under the “5-7-9%” program are provided for small and medium-sized businesses.

This was announced by the Prime Minister of Ukraine Denys Shmyhal.

The approved Procedure defines the conditions, criteria and mechanism for providing financial state support to individuals who install generating units from alternative energy sources together with energy storage units in their own households.

The amount of compensation for installations with a capacity of up to 10 kW per household will be UAH 244 thousand. The maximum loan amount is UAH 480 thousand for a period of 5 years. For this purpose, the budget provides about UAH 600 million.

Such state support is designed to reduce the cost of loans for the purchase and installation of photovoltaic modules and/or wind power plants with an installed capacity of 1 kW to 10 kW, together with hybrid inverters capable of working both in autonomous and synchronous mode with the external network, and installations energy storage with a capacity of 1 kW*h for every 1 kW of the installed capacity of the generating plant.

The head of the government also announced that the Cabinet of Ministers is launching a program of preferential lending for small and medium-sized businesses. These are loans at 5-9% for all power equipment. He also noted that the National Bank will recommend to banks that the interest on loans for energy needs does not exceed the discount rate of 13.5%.

He also informed that, together with the Verkhovna Rada, the government is preparing a draft law on the removal of customs duties and VAT on the import of all energy equipment and on the priority of customs clearance for such goods.

Earlier, EcoPolitic reported that solar power plants save Ukrainians from power outages during the day. We also talked about what additional power new wind turbines will give to the energy system.

Related
In Ukraine, the share of RES reached 9.8%
In Ukraine, the share of RES reached 9.8%

But the reason is not the rapid growth of the industry 

Solar and wind energy have become more profitable than fossil fuels, – IRENA
Solar and wind energy have become more profitable than fossil fuels, – IRENA

The long-term policy of supporting renewable energy accelerated its development, ensured the improvement of technologies and reduced costs

Climate target to triple global renewable energy by 2030 quite achievable –IEA
Climate target to triple global renewable energy by 2030 quite achievable –IEA

But this requires political will and simplification of permitting procedures