AMMAN — Farmers in Jordan can now apply for low-interest personal loans to replace their diesel-powered equipment with solar energy.
The solar power project, to be financed by the Agricultural Credit Corporation (ACC), will be primarily centred on helping farmers reduce their energy bill and encouraging eco-friendly practices in Jordan.
ACC Director General Mohammad Hiyari said the loans are an integral part of the government's endeavour to address energy woes in the Kingdom.
Hiyari added that because most of the agricultural equipment in Jordan is diesel-powered, "which literally means high cost", helping farmers install heat-absorbing panels on their farms will help them reduce their energy bill that "devours most of their income".
Farmers will be given up to JD30,000 to install solar panels on their farms, he said, and they can start applying for the low-interest loan, which was unveiled around 10 days ago.
The loan, with a maturity period of eight years, carries an interest rate of 7 per cent that could go down to 3.5 per cent, Hiyari told The Jordan Times over the phone on Tuesday.
He also explained that the ACC only provides the funding, while the technicalities of renewable energy projects, in terms of solar power technology and installation of the panels, will be decided by the companies farmers choose to deal with.
"No farmer has applied yet for the loan simply because the ACC's 22 branches have received the circular only three days ago," he said.
In October last year, the Cabinet decided to increase the ACC's capital by JD10 million, to reach JD60 million.
Hiyari added that the ACC has allocated loans worth JD134 million as part of the 2103-2016 National Strategy for Agricultural Development, noting that 5,800 farmers benefited from the corporation's loans in 2013 which totalled JD29 million.
