Emirates Development Bank (EDB) has come up with the Solar Energy Finance Programme to support MSMEs in diverse sectors in the UAE. The program assigns AED100 million to encourage green energy solutions with a premium on solar energy initiatives.
The Solar Energy Finance Programme will enable the transition to cleaner energy sources by addressing cost barriers that may have hindered the adoption of sustainable practices. The program offers medium as well as long-term loans along with working capital. Solar projects will also get direct support. The scheme includes 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.
The program provides favourable terms and conditions. This also entails loans with tenors of up to eight years for structured finance projects and solar panels. The grace periods will be for up to six months. A 100% Loan-to-Value (LTV) ratio is also available.
CAPEX finance for solar panels are also included in the scheme. Greenfield and Brownfield structured project financing for other renewable energy sources is a part of the program too.