Energy Ministry partners with local banks to subsidise solar systems for households

AMMAN — The Ministry of Energy and Mineral Resources on Monday signed agreements with Cairo Amman Bank and Jordan Islamic Bank to launch the 2024/2025 phase of the Home Sector Support Programme. 

The programme is implemented by Jordan Renewable Energy and Energy Efficiency Fund (JREEEF) of the ministry.

The initiative offers subsidies covering 30 per cent of the cost of solar panel systems and solar water heaters, according to a ministry statement. 

Energy Minister Saleh Kharabsheh, who chairs the fund's board of directors, signed the agreements with Cairo Amman Bank CEO Kamal Bakri and Jordan Islamic Bank CEO Hussein Saifan.

At the ceremony, Kharabsheh stressed the importance of partnering with local banks to make the programme accessible to households across Jordan. 

He noted that the programme aims to reduce electricity bills while promoting the use of renewable energy. 

The minister also commended the banks for offering flexible financing options, which allow citizens to cover the remaining 70 per cent of system costs through instalment plans.

Kharabsheh highlighted the success of the programme's previous phase, which saw the installation of 3,000 solar water heaters and 2,000 solar panels at a total cost of JD 6.5 million, with the Fund subsidizing 30 per cent of the expenses.

The new phase, which began on September 24, aims to install 4,000 solar panel systems and 5,000 solar water heaters by the end of the year, with a projected cost of JD 8.5 million and JD 3 million, respectively.

Kharabsheh reiterated the ministry’s commitment to ensuring equitable distribution of support across all regions of the Kingdom.

Over the past nine years, JREEEF has implemented many renewable energy and efficiency projects across the Kingdom, with total investments amounting to some JD100 million.

The fund has recently said that it had installed more than 35,000 solar water heaters in households across the Kingdom through various funding mechanisms, adding that it aims to install an additional 90,000 solar water heaters over the next five years.

Rasmi Hamza, JREEEF CEO, has recently said that the fund would continue its comprehensive national project to provide solar water heating systems, noting that this initiative includes support for low-income families and those receiving housing units, as part of a Royal Makruma, with the fund covering 100 per cent of the cost.