Emirates Development Bank (EDB) has introduced an innovative Solar Energy Finance Programme designed to assist micro, small, and medium enterprises (mSMEs) across diverse sectors in the UAE. This groundbreaking program allocates AED100 million to promote the adoption of green energy solutions, with a primary focus on solar energy initiatives.
The Solar Energy Finance Programme aims to facilitate the transition to cleaner energy sources by addressing cost barriers that may have hindered the adoption of sustainable practices. The program offers straightforward application processes and provides medium- and long-term loans as well as working capital, with support specifically directed toward solar energy projects. It encompasses 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.
Emirates Development Bank’s CEO, Ahmed Mohamed Al Naqbi, emphasized the program’s importance, noting that it provides competitive financing options to assist UAE businesses in shifting toward clean and sustainable energy solutions. This transition aims to decrease reliance on non-renewable energy sources and contribute to addressing climate change. Al Naqbi highlighted the bank’s collaboration with government authorities, approved renewable energy experts, and contractors to offer comprehensive support throughout the transition process. The ultimate objective is to encourage businesses of all scales to adopt more sustainable energy solutions and participate in the development of significant renewable energy projects.
EDB’s Solar Energy Finance Programme offers favorable terms and conditions, including loans with tenors of up to 8 years for structured finance projects and solar panels, along with grace periods of up to six months. The program includes a 100% Loan-to-Value (LTV) ratio, providing finance for the full appraised value or purchase price of the asset.
The financing covers CAPEX finance for solar panels and offers Greenfield and Brownfield structured project financing for other renewable energy sources, enabling the development of larger-scale clean energy initiatives. Additionally, approved solar panel contractors can access finance through EDB’s receivable finance solution to manage cash flow and invest in new projects while awaiting customer payments.
EDB’s renewable energy financing initiative aligns with government priorities and reinforces its mission of promoting a sustainable and self-reliant economy. EDB aims to provide AED30 billion in financing support to 13,500 companies within its priority sectors, including renewables, by 2026, thus contributing to the acceleration of the transition to a cleaner and greener future.