Solar Finance Program Helps Businesses and Homeowners Make Every Roof Count

An end-to-end solar journey

U-Solar goes beyond simply helping businesses and homeowners finance their transition to using more sustainable energy, shares Mr. Jasper Wong, Managing Director, Head of Construction and infrastructure at UOB.

“Instead of lending on a one-to-one basis, we want to bring ecosystem players together to create an end-to-end solution that connects businesses and consumers across the entire energy value chain. solar,” Wong said.

He outlines three key goals of the U-Solar program, the first of which is to educate businesses and homeowners on how they can achieve greater energy efficiency through the use of solar panels.

“That would translate into cost savings for them, given that electricity tariffs in Singapore are on the rise,” says Wong. In June, the Straits Times reported that the electricity tariff in Singapore had increased by 8% in the third quarter of 2022 compared to the second quarter amid the global oil and gas crisis.

He adds, “The UOB guarantees that the ecosystem partners under the program are reputable companies that can help our end customers achieve at least 20% energy savings.

U-Solar’s second goal is to help its ecosystem partners – from building developers and owners to solar solution providers – grow their businesses. The initiative has 17 partners in the four Southeast Asian markets where it operates.

“The program also creates value for our partners because when they embark on cross-border projects, they can leverage our resource ecosystem to help them grow in the region,” Wong said.

Finally, U-Solar aims to simplify access to financing for end users. Mr. Lim of SolarGy shares that one of the common challenges faced by customers was the lack of access to a financing program to match the payback period of a solar PV system.

“The payback period for a solar photovoltaic system is seven to 10 years. However, hire-purchase loans from banks usually have a repayment period of three to five years and are only based on the cost of the equipment,” says Lim.

The U-Solar program for business owners can typically support up to 70% of the total cost of installing a solar PV system, with a loan term of seven years. For SolarGy, a system that generates 100 kilowatt-peak of electricity starts at $120,000. However, for most businesses, the money saved on their electricity bills is enough to cover monthly payments, Lim says.

“This way, the solar system becomes self-funding and businesses enjoy a higher return on investment as they continue to benefit from energy savings after the payback period.”

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