The State Agency on Energy Efficiency and Energy Saving of Ukraine (SAEE), together with UGB Ukrgasbank, has launched a program that allows enterprises to receive partial compensation of interest rates on loans for energy efficiency and decarbonization projects. The program is implemented within the framework of the State Fund for Decarbonization and Energy Efficiency Transformation of Ukraine.
“Recently, we signed the first voluntary agreements with borrowers, and in the near future Ukrgasbank will issue the first loans under the new program. SAEE will compensate 12% of the interest rate on loans from partner banks. This significantly reduces the real cost of borrowing and makes investments in energy efficiency more accessible and profitable than ever before,” emphasized Anna Zamazeyeva, Head of the SAEE.
To date, Ukrgasbank has issued its first loan under the program. It is directed toward the construction of a 12 MW solar power plant that will produce over 9,900 MWh of clean electricity annually and reduce CO₂ emissions by 4,000 tons per year.
Two more projects with a total capacity of 25 MW are currently under implementation. Once operational, they will generate more than 22,000 MWh per year and cut around 9,000 tons of CO₂ emissions.
The loan subsidy program is designed to support those who seek to implement energy-efficient solutions and reduce energy costs — including individual entrepreneurs, legal entities with Ukrainian-resident ultimate beneficiaries, as well as state and municipal enterprises.
What can the financing be used for?
Improving energy efficiency in production or services;
Modernization of heat generation and water supply systems;
Renewable energy sources (RES) and alternative fuels;
Energy service (ESCO) projects.
The maximum loan amount depends on the borrower’s category:
Individual entrepreneurs — up to UAH 5 million;
Businesses — up to UAH 60 million;
Enterprises in the heat or water supply sectors — up to UAH 90 million;
Energy service providers (including individual entrepreneurs) — up to UAH 20 million.
The loan term is up to 10 years, with an interest rate of up to 21% per annum.
Important!
Under this program, thanks to state compensation of part of the interest rate, the effective cost of borrowing may be reduced:
up to 12% per annum for general projects,
up to 14% if Ukrainian-made equipment is used.
To qualify for compensation, the project must meet minimum efficiency criteria:
Energy efficiency: reduction of energy consumption and CO₂ emissions by at least 15%;
Renewable energy and alternative fuels: replacement of at least 50% of traditional energy resources or fuels and a 20% reduction in carbon emissions;
Energy service projects: achieving an energy efficiency class above the minimum; if Ukrainian-made equipment is used, its share must be at least 70%;
Public transport: replacing at least 20% of fuel consumption with electricity.
The state will transfer the interest rate compensation through an authorized bank each month. Within three days, the funds will be credited directly to the borrower. In case of any violations, payments will be suspended.
Funds can only be used for their intended purpose — ensuring they are applied exactly where needed.
“This is just the beginning! Ahead are new banks, new agreements, and even more opportunities. I’m glad that energy efficiency in Ukraine is becoming both profitable and accessible — exactly as it should be,” summarized Anna Zamazeyeva, Head of the SAEE.
We are grateful to the Ukrgasbank team for their partnership and active support of green projects in Ukraine!