Cabinet allocates extra UAH 300 mln for "warm" loans program

UNIAN 3

The Cabinet of Ministers of Ukraine has allocated UAH 300 million, or US$11.6 million, for the implementation of the so-called "warm" loans program provided for improving energy efficiency of households, according to relevant decision approved at a government meeting on Wednesday, July 12.

Photo from UNIAN
Photo from UNIAN

"We are allocating an additional UAH 300 million for "warm" loans. Our goal is to become an energy independent state before 2020 and to effectively save our resources," Prime Minister Volodymyr Groysman said.

The State Agency for Energy Efficiency and Energy Saving says that UAH 260 million from this amount will be provided to individuals for insulation of households; almost UAH 10 million - for replacement of boilers; around UAH 30 million - for energy-efficient efforts of condominium associations and housing construction organizations.

Six renewable energy facilities to be launched in Lviv region in 2017The agency noted that thanks to this decision, at least 65,000 households would be able to use the government’s irrevocable financial assistance.

As UNIAN reported earlier, in early April 2015, the Ukrainian government adopted a program aimed at compensating 20%-40% of the cost of loans for energy efficiency measures. The Cabinet included UAH 400 million into the 2017 state budget for "warm" loans program, whereas UAH 900 million was allocated for this project in 2016. According to head of Ukraine's State Agency for Energy Efficiency and Energy Saving Serhiy Savchuk, the allocated UAH 400 million will be enough only for the first half of 2017.

The funding mechanism of "warm" loans involves a refund of 20% of the loan amount (but not more than UAH 12,000) for households to carry out replacement of gas boilers, a 35% refund of the loan amount (but not more than UAH 14,000) for individuals on energy efficient equipment and materials, a 40% refund of the loan (but not more than UAH 14,000 per apartment) for condominium associations and housing construction organizations on energy-efficient equipment and materials. A 70% compensation of the loan is envisaged for citizens who receive subsidies.

Tags: Ukraine, warmloans, energyefficiency

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