Energy Ministry signs agreement to finance installation of solar cells, heaters

AMMAN — The Ministry of Energy and Mineral Resources and the Jordan Islamic Bank on Wednesday signed an agreement to facilitate the financing of the fourth phase of a programme to instal solar cells and heaters through banks and micro-finance institutions (MFIs), at a 30 per cent subsidy rate, according to a ministry statement.

This agreement with banks and MFIs is the “first of its kind”, Energy Minister Hala Zawati said, noting that more agreements will be made to encourage the household sector to invest in renewable energy and energy efficiency through providing suitable instalment payment programmes.

The minister deemed the project "important" as it could have economic, social and environmental impacts on the targetted segments of society, the statement said.

Highlighting the importance of the project, Zawati said that the 30-per cent government subsidy is a direct support to Jordanian families allowing them to instal solar cells and heaters. This will contribute to reducing monthly electricity bills on the one hand, and creating additional job opportunities in the field on the other.       

As per the agreement, citizens pay in instalments only 70 per cent of the actual cost of installing solar cells and heaters with the help of banks and MFIs, while the remaining 30 per cent is financed by the Jordan Renewable Energy and Energy Efficiency Fund (JREEEF), according to the statement.

As for photovoltaic solar cells, the programme requires that citizens choose cells with a kilowatt price of under JD550 and a capacity not exceeding 3.5 kilowatts, while 70 per cent of the cost must be paid over a maximum period of 48 months.   

Solar heater mirrors should not exceed JD450 per mirror, and should be paid off in no more than 24 months, while the cost of systems based on pipes should not exceed JD300, with payment within 12 months.

During its first three phases, the solar cell programme benefitted a total of 26,000 houses and installed 1,500 photovoltaic solar cells, the statement said.