Abu Dhabi: Emirates Development Bank (EDB) has unveiled a new Solar Energy Finance Program to support micro, small, and medium enterprises (mSMEs) across diverse sectors within the UAE. The first-of-its-kind program will allocate $27 million to bolster the adoption of green energy solutions, focusing on solar energy initiatives.
The new program seeks to support the shift toward cleaner energy sources by addressing cost barriers that may have hindered the adoption of sustainable practices. With convenient application processes, the program offers medium- and long-term loans and working capital of up to $1.3 million, particularly directed at solar energy projects. This includes support for technology providers, equipment suppliers, energy consumers across various sectors, and other related energy endeavors such as electricity, hydrogen production and use, waste management, and water plants.
It is timely that we have chosen the year we are proudly hosting the crucial COP28 climate talks to launch our solar energy financing package. EDB is now offering a competitive source of financing to help UAE companies transition towards clean and sustainable energy solutions. This will reduce dependence on non-renewable sources and address climate change.
Mr. Ahmed Mohamed Al Naqbi, Chief Executive Officer of Emirates Development Bank, shared.
“By partnering with key government authorities and approved renewable energy consultants and contractors, we also aim to provide comprehensive support throughout the process. Our goal is to encourage businesses of all sizes to transition to more sustainable energy solutions and help develop major new renewable energy projects. In the race to Net Zero, no one can be left behind,” Mr. Al Naqbi added.
EDB’s new scheme comes with the bank’s usual highly beneficial terms and conditions, offering up to 8-year-long tenor loans for structured finance projects and solar panels, with grace periods of up to six months. Under the new scheme, EDB is offering a 100 percent Loan-to-Value (LTV) ratio and will be providing finance for the full appraised value or purchase price of the asset.
Financing is offered for CAPEX finance for solar panels, and Greenfield and Brownfield structured project financing is available for other renewable energy sources, enabling the development of larger-scale clean energy initiatives.