Jordan’s Solar Panel, Water Heater Subsidy Scheme Backed by Banks

Wedoany.com Report-Nov 29, Cairo Amman Bank and Jordan Islamic Bank have signed joint cooperation agreements with Jordan’s Ministry of Energy and Mineral Resources to support the 2024/2025 phase of the country’s subsidy scheme for residential solar panels and solar water heaters. The scheme covers 30% of the cost of installations.

A subsidy scheme for residential solar panel systems and solar water heaters in Jordan has received support from two major banks.

The household sector support program, which offers up to 30% of the costs of household solar panel and solar water heater installations, is implemented by the Renewable Energy and Energy Efficiency Fund at Jordan’s Ministry of Energy and Mineral Resources.

Cairo Amman Bank and Jordan Islamic Bank have signed joint cooperation agreements for the new phase of the initiative, which will see the banks offer flexible financing options to customers, including allowing citizens to cover the remaining 70% of system costs through instalment plans.

The 2024/2025 phase of the subsidy scheme, which launched in September, aims to install 4,000 solar panel systems and 5,000 solar water heaters by the end of the year, at a projected cost of JOD 8.5 million ($12 million) and JOD 3 million.

Energy Minister Saleh Al-Kharabsheh, who is also the fund's board of directors, says the previous phase installed 3,000 solar water heaters and 2,000 solar panels at a total cost of JOD 6.5 million, with the fund subsidizing 30% of the expenses.

Jordan had 1.99 GW of cumulative installed PV capacity at the end of 2023, according to the latest statistics from the International Renewable Energy Agency (IRENA).