The Government has launched affordable loans for condominiums and housing cooperatives for the purchase and installation of energy equipment

The Cabinet of Ministers of Ukraine has expanded the scope of the state program "Affordable Loans 5-7-9%". From now on, condominium associations and housing cooperatives will be able to purchase and install generating units that produce electricity from alternative sources, as well as electricity storage facilities and auxiliary equipment. The Government adopted the relevant resolution at a meeting on July 5, 2024.

"Due to the large-scale shelling of the energy infrastructure by the Russian Federation in recent months, Ukraine has lost about 9 GW of capacity. Therefore, the Government's top priority is to prepare for the new heating season and provide Ukrainians and businesses with maximum access to financing to restore energy capacity and implement energy efficiency. By expanding the Affordable Loans 5-7-9 program, condominiums and housing cooperatives will be able to receive a loan of up to UAH 5 million for up to 5 years at 7% per annum. These funds will be used, for example, to buy and install solar panels, inverters, energy storage systems and other auxiliary equipment," said Yulia Svyrydenko, First Vice Prime Minister of Ukraine, Minister of Economy of Ukraine, during a meeting of the Presidium of the Congress of Local and Regional Authorities chaired by President of Ukraine Volodymyr Zelenskyy.

The program will work in conjunction with the GRAND HOME program. Under this program, condominiums and housing cooperatives will be able to receive up to 70% of the project cost after its completion.

In order to take advantage of the state program of preferential lending "Affordable Loans 5-7-9", the management of condominiums or housing cooperatives must apply to one of the 46 banks that cooperate with the state under the program "Affordable Loans 5-7-9" and provide a package of necessary documents established by the bank.

The program of concessional lending for condominiums and housing cooperatives will start on July 20.

The government also made another important decision to prepare for the 2024-2025 heating season. State-owned and municipal enterprises were allowed to purchase power generation equipment without holding tenders, but with an additional safeguard - the requirement to report in the Pozorro electronic system.

During an expanded meeting of the Presidium of the Congress of Local and Regional Authorities under the President of Ukraine, Yulia Svyrydenko presented a package of tools for citizens and businesses to overcome the electricity shortage. In addition to the decisions adopted today, it also includes several areas: support for households, support for businesses, support for businesses in the de-occupied and frontline territories, the offer of loans of over UAH 150 million for businesses and electricity imports.

For households, the Government has introduced 0% interest rate loans.

The Cabinet of Ministers has approved the terms of financial state support for individuals who install generating units producing electricity from alternative sources in their households.

Essentially, anyone who wants to buy solar or wind power plants along with energy storage systems can get an interest-free loan. The state fully compensates the interest rate. The loan term is 10 years. The loan amount can be up to UAH 480 thousand for the purchase and installation of a hybrid power supply system.

The second possibility is to expand the Affordable Loans 5-7-9% program for businesses to purchase and install gas-fired power generation units. In particular, gas turbine, gas piston, and biogas generating units can be purchased and installed. The maximum amount of the respective soft loan is up to UAH 150 million, and the loan term is up to 10 years.

The Government has introduced improved conditions for the de-occupied and frontline territories. The loan term and limit have been increased. And the interest rate has been reduced. The compensation is up to 1% for the first two years, 5% from the next year for investment purposes. The program limit and term have been increased to UAH 150 million and 10 years.

Third, there are opportunities for those companies that want to invest more than UAH 150 million in their own generation. This offer is available from 19 of Ukraine's largest banks, which provide preferential lending for energy infrastructure restoration projects. The amount of loans, depending on the segment, can be up to EUR 25 million. The loan term will be up to 5-7 years, the basic interest rate for loans in national currency within the basic product: for the first year - 13.5% per annum or UIRD3M + 0.5%, starting from the second year - floating, but not more than UIRD12M + 3%.

"What is very important and has always been a challenge for business is the availability of collateral. For energy renewal, the collateral will be the equipment that the business buys. This will greatly simplify the process of obtaining a loan and make it more accessible to more entrepreneurs," said Yulia Svyrydenko.

Work is also underway to increase the possibility of importing electricity from Europe. Since December last year, the Government has increased the maximum permitted electricity imports from the EU from 1200 to 1700 MW.

"Even with Russian attacks on energy facilities, it is important that the economy continues to work. After all, it means jobs and taxes that go to strengthen the defense capability of our country. Electricity imports are an important contribution to energy security, and therefore to economic security. Now the Government is working to further increase the volume and limits of imports for business," summarized Yulia Svyrydenko.