Ukraine introduces interest-free loans for energy equipment

The Ukrainian government is actively responding to the country's energy challenges with the help of new support programs aimed at increasing the sustainability of electricity supply and the development of decentralized energy. An important step in this direction will be the introduction of interest-free loans for businesses and individuals, designed to finance solar panels and other renewable energy sources.

The Cabinet of Ministers presented decentralized energy support programs for citizens and businesses.

The Prime Minister of Ukraine, Denys Shmyhal, said this during a meeting of the Presidium of the Congress of Local and Regional Authorities under the President of Ukraine.

In particular, he outlined five main directions of the Government's work in the energy sector.

"Quick restoration of energy facilities. Here, the Ministry of Energy has approved all plans and repair programs in both thermal, hydro and nuclear power generation. The second direction is the protection of facilities and the increase of air defense. The third direction is the development of a decentralized energy system. These are new opportunities for people, businesses and communities. The fourth direction is to increase the import of electricity from Europe to 2.2 GW. The fifth direction is attracting funds and equipment from partners," Shmyhal said.

The Prime Minister spoke in detail about the programs for the population and business, which are already in place and which will become operational in the near future.

  • Interest-free loans for citizens for solar panels and wind turbines up to 10 kW capacity. A loan of up to UAH 480,000 for 10 years without collateral, at 0% per annum;
  • under the "GreenDIM" program, the state compensates co-owners of housing with UAH 1 million for solar panels and UAH 2 million for heat pumps. This covers up to 70% of the project cost. The government also worked out a decision on lending condominiums in the amount of up to UAH 5 million;
  • "5-7-9" loans for small and medium-sized businesses for the installation of gas power generation plants. Up to UAH 150 million for a term of up to 10 years at 5-9% with credit "vacations" of 6-12 months. Even more favorable conditions will apply in the front-line territories;
  • Lending to large businesses for 5-7 years with an interest rate of 14-16% for the development of alternative generation;
  • exemption of energy equipment from import duty and VAT. Corresponding changes to the legislation have been registered in the Parliament. The norms will be valid for citizens and for businesses until the beginning of 2026;
  • from 10 to 2 days, the terms of obtaining technical conditions for connection to power grids have been reduced, the number of documents has been reduced from 7 to 2, the term of providing the service for connection to the gas distribution system has been reduced to 1 month, there is no need to go through land acquisition procedures and environmental impact assessment;
  • a "hotline" and a website with information about new opportunities will be launched.

Denys Shmyhal noted that this whole set of measures will come into effect no later than July 25.

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