Emirates Development Bank unveils dedicated solar financing program

The Emirates Development Bank (EDB) has unveiled a new solar financing program, the first of its kind, aimed at supporting small, medium and micro enterprises in various sectors within the United Arab Emirates. The program will allocate AED 100 million to promote the adoption of green energy solutions, with a focus on solar energy initiatives.
The new program aims to support the transition towards clean energy sources and address cost barriers that may have hindered the adoption of sustainable practices. Through convenient application processes, the program offers medium and long-term loans and working capital of up to AED 5 million, specifically targeted at solar energy projects.
This includes supporting technology providers, equipment suppliers and energy consumers in various sectors and other related energy endeavors such as electricity, hydrogen production and use, waste management and water plants.
Ahmed Mohammed Al Naqbi, chief executive officer of the Emirates Development Bank, said: “the time has come to choose the year when we will proudly host the crucial cop28 climate talks to launch the solar financing package. The EDB is now providing a competitive source of funding to help Emirati companies transition towards clean and sustainable energy solutions. 
He added that this will reduce dependence on non-renewable sources and address climate change. By partnering with key government authorities and accredited renewable energy consultants and contractors, we also aim to provide comprehensive support throughout the process and our aim is to encourage companies of all sizes to transition to more sustainable energy solutions and to assist in the development of new major renewable energy projects. And in the race to net zero, no one can be left behind.
The latest EDB offer comes with the bank’s usual high-interest terms and conditions, offering loans of up to 8 years for structured finance projects and solar panels, with grace periods of up to six months. Under the new scheme, the EDB will provide a 100% loan-to-value (LTV) ratio and will provide financing for the full assessed value or purchase price of the asset.
Financing is provided to finance capital expenditures for solar panels, structured financing is also available for Greenfield and brownfield projects for other renewable energy sources, enabling the development of large-scale clean energy initiatives.
The EDB also allows approved solar panel contractors to obtain financing by taking advantage of the EDB’s receivable financing solution. This helps contractors manage cash flow, invest in new projects, or cover their operating expenses while waiting for customer payments.
By providing funding for renewable energy, the EDB aims to play a pivotal role in accelerating the transition towards a cleaner and greener future. In line with government priorities, the EDB continues to carry out its mission of promoting a healthy, sustainable and self – reliant economy, with a mandate to approve AED 30 billion in funding for 13,500 companies within its five priority sectors-renewable energy, food security and manufacturing. Technology and healthcare-by 2026.