Ukrainian banks have already started to issue loans under the Government’s Affordable Loans at 5-7-9% programme for the purchase and installation of equipment for generating electricity from alternative sources, as well as equipment for storing electricity for condominiums and housing cooperatives.

The state-owned Sense Bank signed the first loan agreement for the purchase and installation of a 30 kW solar power plant for a Vinnytsia-based condominium. This equipment will meet the building’s own energy needs. The loan was issued for a term of up to 5 years.

“The Government is working to restore the power system after the enemy shelling and ensure stable energy supply for consumers. We, as the economic bloc of the Government, have implemented a programme of concessional lending to condominiums and housing cooperatives under the Affordable Loans at 5-7-9 programme and already have the first example of financing such projects and applications pending. This is just one of the solutions within the energy system support package. There are both government programmes and individual offers from banks. In two months, banking institutions have received more than 7,300 applications from businesses and individuals for loans to restore energy infrastructure and approved applications worth almost UAH 4 billion,” said Yuliia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.

According to Sense Bank, the development of financing for alternative energy sources is one of its priorities.

“Recently, the Cabinet of Ministers of Ukraine expanded the Affordable Loans at 5-7-9% programme and, in particular, allowed lending to housing cooperatives and condominiums for the implementation of energy-efficient solutions. And today we have signed the first agreement with a Vinnytsia-based condominium to provide loans for the construction of a 30 kW solar power plant. This is the first homeowners association out of more than 39,000 registered in Ukraine to enjoy full energy independence. We will continue to actively develop the area of concessional lending for energy initiatives of all segments of the population, both at the expense of government programmes and on our own,” said Oleksii Stupak, Chairman of the Management Board of Sense Bank.

It is worth reminding that under the terms of the Affordable Loans at 5-7-9% programme for condominiums and housing cooperatives, the loan amount can be up to UAH 5 million for up to 5 years at 7% per annum. The programme will work in combination with the GreenDIM programme. Under this programme, condominiums and housing cooperatives will be able to receive up to 70% of the project cost after its completion.

In order to benefit from the Government’s Affordable Loans at 5-7-9 soft loan programme, condominium or housing cooperative management must submit an application to one of the banks cooperating with the Entrepreneurship Development Fund and provide a package of documents required by the bank.

In addition, the following tools are available to businesses and individuals:

• Extended Affordable Loans at 5-7-9% programme for businesses to purchase and install gas-fired power generation units. The soft loan amount is up to UAH 150 million and the loan term is up to 10 years. The Affordable Loans at 5-7-9% programme also provides entrepreneurs with the opportunity to use credit funds to purchase solar and wind power plants, as well as equipment for the storage of electricity.
• Concessional lending for energy infrastructure rehabilitation projects provided by 19 of Ukraine’s largest banks. The loan amount can be up to EUR 25 million. The loan term is up to 5-7 years.
• Concessional lending at 0% for households to install solar panels with energy storage systems and wind turbines. The loan amount is up to UAH 480,000. The loan term is 10 years.