Energy-Conscious: How Ukrainians leverage government programs to ensure access to electricity, heating, and water.

Winter is approaching, and once again our country is entering a state of uncertainty. As expected, the drop in temperature will place a greater strain on the central energy system. A viable solution to prevent energy crises in the face of additional threats is distributed generation. To enable every citizen and business to secure their own energy, the government is offering support for the establishment of alternative energy sources. How exactly is the government prepared to assist?

The government has developed a package of programs to ensure the energy resilience of the country, allowing private households, homeowners' associations (OSMD), housing cooperatives (JSC), and entrepreneurs to install alternative energy sources, including solar panels and storage systems. A portal called "Energy-Aware" has been created to inform citizens about government initiatives aimed at transitioning to autonomous energy supply.

The website provides information on what financial resources are available for purchasing energy equipment for citizens, OSMD, JSC, and businesses, how to choose the right program, who can participate, and how funds can be utilized. It also outlines the steps to join the programs and lists partner banks for financing. These programs are designed to reduce the costs of purchasing and installing specialized equipment through government funding.

Government – to Citizens

Assistance to citizens includes the option to obtain loans from accredited banks at 0% annual interest for purchasing specialized equipment for generating and storing electricity from alternative sources. The government compensates banks for the interest on these loans.

Individuals can receive an interest-free loan under a single credit agreement for the purchase and installation of solar panels or wind turbines with a capacity ranging from 1 to 10 kW, equipped with hybrid inverters that can operate both autonomously and in sync with the external grid. Additionally, energy storage systems with a capacity of 1 kWh for each 1 kW of generation capacity can be purchased for installation in private households, where the total area does not exceed 300 square meters. Family members of the first degree of kinship of the private household member can also expect interest compensation.

The cost of the equipment must not exceed 480,000 hryvnias. The maximum loan term for which government support can be provided to individuals is 10 years.

Property rights to funds from deposits and government bonds cannot be used as collateral for the loan.

To receive government support, one must be a Ukrainian citizen or a citizen of another state or a stateless person residing legally in Ukraine and being a tax resident of Ukraine.

Citizens of Russia, except for those legally residing in Ukraine, as well as individuals under sanctions, are excluded from participating in the program. Those whose incomes have exceeded 10 average salaries over the past six months should not expect government assistance. Additionally, individuals convicted of crimes against the national security of Ukraine are also excluded.

The process of joining the program is straightforward. Step one – submit a written or electronic application to one of the authorized banks along with the necessary documents, including an invoice for the equipment and services, as well as consent from co-owners of the household for the purchase and installation of this equipment. Next, you will sign a loan agreement with the bank. As the saying goes, the fish is in the net - the bank transfers the funds to the suppliers' accounts, who sell goods, provide services, or perform works. And you take a step closer to your own energy independence.

Important note: the borrower, as an individual, pays the bank's fees for the loan issuance. However, these fees for the entire term of the loan agreement should collectively not exceed 1.5% of the loan amount.

Five banks are participating in the program, including four state-owned banks: "Oschadbank," "PrivatBank," Sense Bank (formerly "Alfa-Bank Ukraine"), and UGB (or simply "Ukrgasbank"), as well as "Globus" bank.

Finally, within 180 calendar days from the date of receiving the loan, the borrower must provide the bank with copies of documents confirming the purchase and commissioning of the hybrid power supply system, as well as send a photo of the installed system with geolocation tags. Subsequently, every six months, the bank requires photos with geolocation and data on electricity consumption volumes.

Government – to Housing Co-owners

Financial assistance from the government can be obtained by homeowners' associations (OSMD) and housing construction cooperatives (JSC) located in Ukraine, except for those in temporarily occupied territories and areas of active combat.

Assistance covers the purchase and installation of solar power plants, heat pumps, and related equipment.

OSMD and JSC can receive government support under the "GreenGIM" program from the state Energy Efficiency Fund in the form of a grant of up to 70% of the cost of solar power plants or heat pumps, not exceeding 2 million hryvnias. They can also expect compensation of up to 70% of the cost of energy efficiency certification for multi-apartment buildings, but not exceeding 15,000 hryvnias.

Important note: grants are not provided for expenses related to performing any types of work or services. Exclusively for the purchase of necessary equipment and conducting energy audits.

The process of joining the program is as follows. First, a general meeting of the co-owners of the multi-apartment building must be held to decide on participation in the grant program. Next, they must undergo energy efficiency certification of the building and obtain the corresponding certificate.

Then, a partner bank must be selected, and an account opened there to receive the grant. Six banks are involved in the program - "Ukrgasbank," "PrivatBank," KredoBank, "Globus," MTB Bank, and Sense Bank.

Next, an application for participation in the program must be submitted to the state energy efficiency fund. After that, equipment must be purchased, a contractor found, and all necessary installation works completed. The purchaser of the equipment must be the OSMD or JSC. The next step is to undergo re-certification of the building's energy efficiency and submit a repeat application to the Energy Efficiency Fund.

Applications can be submitted online via email to [email protected] or in paper form to the fund's address: 03150, Ukraine, Kyiv, 24 Deloava Street.

If approved, the grant will be disbursed to the bank within 15 working days.

"It all started with the idea: we need a backup power supply for the rooftop boiler room that automatically restarts and requires no special maintenance. We held a meeting of the co-owners and decided to participate in the "GreenDIM" program and apply for a loan. The "Globus" bank successfully approved our application and provided 1.4 million hryvnias in loan funds. Today, the panels are already installed on the roof of our residential complex," shared Kristina Lishtvan, chair of the board of OSMD "Sunrise Lviv" (Lviv).

According to her, an ordinary resident receives these alternative sources of energy almost for free. They continue to pay the same utility bills to the OSMD as before. They invest nothing of their own but gain assurances of heat and light during energy supply disruptions. The greatest advantage of such an initiative is that we can contribute to the development of distributed generation. When you feel your part in this process, that you are doing something for your country and not just for your residents, it motivates you to take further steps.

Government – to Small and Medium Enterprises

The government is making loans for small and medium-sized businesses more affordable for the purchase and installation of solar panels and wind turbines with hybrid inverters, energy storage systems, as well as financing the construction and installation of gas turbine, gas piston, and biogas generation systems. All this is made possible under the state program "Affordable Loans 5-7-9%."

Businesses can obtain loans of up to 150 million hryvnias at an interest rate of 5-7-9% per annum for up to 10 years. Property, property rights, or financial guarantees can be accepted as collateral for the loan. However, property rights on bank deposits or government bonds are not permitted as collateral.

To join the preferential financing program, an application must be submitted to one of the authorized banks along with the necessary documents and an investment project business plan. After signing the loan agreement with the bank, the funds are transferred to the suppliers' accounts, who sell goods, provide services, or perform works.

Currently, 46 banks in Ukraine are participating in the "Affordable Loans 5-7-9%" program. Thus, small and medium enterprises have multiple options for seeking the best lending conditions.

However, favorable lending conditions supported by the government are not available to all businesses. Enterprises where owners or participants are citizens of countries recognized by Ukraine as aggressors or occupiers, as well as enterprises registered in temporarily occupied territories and areas of active combat, cannot participate in the program.

Businesses that have already received state aid exceeding 200,000 euros are also excluded from the program, except for agricultural enterprises, as well as credit, insurance, investment organizations, and pawnshops.</