Emirates Development Bank (EDB) has unveiled a new first-of-its-kind Solar Energy Finance Program aimed at supporting micro, small, and medium enterprises (MSMEs) across diverse sectors within the UAE.
The program will allocate $27.2 million to bolster the adoption of green energy solutions, focusing on solar energy initiatives. It aims to support the shift toward cleaner energy sources, 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. 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.”
EDB’s newest offering comes with the Bank’s usual highly beneficial terms and conditions, offering up to 8 years-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.
EDB is also allowing approved contractors of solar panels to access finance by leveraging EDB’s receivable finance solution. This helps contractors manage cash flow, invest in new projects, or cover their operating expenses while awaiting customer payments.
By offering renewable energy financing, EDB aims to play a pivotal role in accelerating the transition towards a cleaner and greener future. Aligned with government priorities, EDB continues to deliver on its mission of fostering a healthy, sustainable, and self-reliant economy, with a mandate to approve $8.2 billion in financing support to 13,500 companies within its five priority sectors, renewables, food security, manufacturing, technology and healthcare, by 2026.