An overview of new programs for the installation of autonomous energy sources and storage devices for individuals, condominiums and businesses

Due to government loan programs, private homeowners and residents of apartment buildings will be able to set up autonomous energy sources, and businesses will be able to implement energy projects of varying complexity to ensure stable operation. The government has also simplified the regulation of construction, connection to gas, heat, and electricity grids for small generation facilities.

On July 20, a government hotline 15-49 called "STRUM" was launched, which can be used to resolve issues related to the energy sector, including the installation of alternative energy sources to ensure energy independence.

HOAs also have the opportunity to use financial instruments such as the Energy Efficiency Fund's Grin Dim program and the Revolving Fund for Cities of the Association of Energy Efficient Cities of Ukraine. The former covers 70% of the costs of projects to install or purchase solar power plants or heat pumps, and the latter allows get a 0% loan for 12 months for energy efficiency measures.

1. FOR INDIVIDUALS

• State program at 0% per annum

A 0% interest rate loan program is now available to individuals for the purchase of generating facilities that produce electricity from alternative sources. The program was initiated by the Ministry of Energy and is aimed at encouraging household owners to develop their own energy sources.

Anyone who wants to buy solar panels with energy storage systems or wind turbines can get a loan under which the state fully compensates the interest rate during the loan period. The loan amount is up to UAH 480 thousand. The loan term is 10 years. 

To obtain a loan, you can apply to Privatbank, Oschadbank, Ukrgasbank, Sens Bank, and Globus Bank. The number of partner banks in the program will increase, and the Entrepreneurship Development Fund is currently working on this.

2. CONDOMINIUMS AND HOUSING COOPERATIVES

• State program "Affordable Loans 5-7-9"

Condominiums and housing cooperatives can receive a loan of up to UAH 5 million for up to 5 years at 7% per annum under the Affordable Loans 5-7-9 program. These funds can be used to purchase and install solar panels, inverters, energy storage systems, and other auxiliary equipment.
To take advantage of the program, you need to apply to one of the 46 banks that cooperate with the state under the Affordable Loans 5-7-9 program. These include Oschadbank, Vostok Bank, Privatbank, Sens Bank, Ukrgasbank, Globus, and Sky Bank.

• "Grin Dim" Energy Efficiency Fund (only condominiums)

Condominiums can simultaneously take advantage of the loan and the Green House program from the Energy Efficiency Fund. The program provides that condominiums can take out a loan and buy and install solar power plants and/or heat pumps. After installation, you can submit a package of documents to the Energy Efficiency Fund and receive 70% of the compensation from the project cost. This will help repay most of the loan. To participate in the Green House program, you need to contact the Energy Efficiency Fund. 

• EECU RFC (only condominiums of EECU communities)

The program of the Association “Energy Efficient Cities of Ukraine” provides 0% loans to condominiums of the Association's member communities for up to 12 months to support the implementation of energy saving and modernization measures, implementation of energy efficiency projects and programs and climate change adaptation. More information about the Fund's work can be found here.

3. ENTREPRENEURS AND BUSINESSES

Under the Affordable Loans 5-7-9 program, entrepreneurs and businesses can purchase and install gas turbine, gas piston, or biogas generating units. The maximum loan amount is up to UAH 150 million, and the loan term is up to 10 years.

For companies that plan to develop their own generation worth more than UAH 150 million, offers are available from 19 of Ukraine's largest banks, which provide preferential lending for the implementation of energy infrastructure restoration projects. The loan amount can be up to EUR 25 million. The term is up to 5-7 years, the base interest rate for loans in national currency: for the first year - 13.5% per annum or UIRD3M +0.5%, starting from the second year - floating, but not more than UIRD12M +3%.

When and where to apply for a loan from the state

The program has already been approved by the Cabinet of Ministers. Technical work is currently underway. The Entrepreneurship Development Fund is still renegotiating agreements with the banks it works with. The agreements are to be added to the program. The Ministry of Economy expects the issue with the banks to be resolved by July 20.

All state-owned banks participate in the program. So you can contact them, as mentioned above. You can also look for places to buy the necessary equipment to conclude a loan agreement in two weeks.

In addition, bills have been submitted to the Verkhovna Rada to abolish duties and VAT on the import of energy equipment. The Cabinet of Ministers expects that all mechanisms will be fully operational no later than July 25.

The banks' proposals can be found here:

• PrivatBank provides UAH 120 million to finance gas generating units.
• Oschad will attract up to EUR 20 million in investments from the Green for Growth Fund, Southeast Europe to support the Ukrainian energy sector.
• Bank Lviv provides loans for projects to purchase or modernize energy-efficient equipment and transport, renewable energy sources; purchase or modernization of fixed assets; purchase of agricultural and industrial machinery, commercial vehicles, etc.
• OTP Bank finances the acquisition of new energy-saving equipment; modification of existing equipment for energy saving purposes; modernization and expansion of production.
• Raiffeisen Bank finances projects to improve energy efficiency or create renewable energy sources.
• UKRGASBANK provides loans for the purchase and installation of: solar power plants (SPP); heat pumps (HP); wind power plants (WPP); combined wind-solar generating systems (CWSS).
• In addition to supporting government initiatives, Sense Bank is currently developing its own loan program, "Dzherelo Energii", which currently allows micro, small, medium and corporate businesses, as well as local communities, to obtain loan financing for the development of an alternative electricity network.