Gyeonggi-do Lowers Loan Interest Rate for Renewable Energy Installations to 1.8%

Gyeonggi Provincial Government

Gyeonggi Province has significantly lowered the interest rates on renewable energy loan support projects starting this month to expand solar power generation facilities and reduce the financial burden on small-scale power producers.

Gyeonggi Province currently supports 67 billion KRW for three renewable energy loan support projects: ▲Gyeonggi Province Energy Loan Support ▲Energy Efficiency Loan Support for Industrial Complexes and Small and Medium-sized Enterprises (SMEs) and Mid-sized Companies ▲Renewable Energy Distribution Loan Interest Support.

The Gyeonggi Province Energy Loan Support project provides low-interest loans to installers of small-scale solar power plants with a capacity of 500kW or less. Eligible applicants must install modules or inverters certified for renewable energy by the Korea Energy Agency.

The Energy Efficiency Loan Support for Industrial Complexes and SMEs and Mid-sized Companies is a loan support project for SMEs and mid-sized companies intending to install energy efficiency facilities. Eligible equipment includes various devices that can save energy, such as replacement of old boilers, waste heat reuse, and LED lighting.

Gyeonggi Province finances up to 85% of installation costs through these two projects. The interest rate has been drastically reduced from the previous 3% per annum to 1.8%. The loan period is a 3-year grace period followed by 5 years of equal installment repayments. For solar power producers, the construction start date eligibility has been expanded from January 1, 2024, to October 1, 2023.

The Renewable Energy Distribution Loan Interest Support project supports companies that newly install medium-scale solar power plants of 300kW or more by subsidizing interest when they take out loans from banks with which the province has agreements.

The minimum burden interest rate for supported businesses has been lowered from 2% to 1.8%, with a maximum 3-year grace period and 12 years of equal installment repayments.

Kim Yeon-ji, Director of the Energy Industry Division of Gyeonggi Province, urged, "As we have greatly expanded RE100 financial support to promote renewable energy and RE100 investments, we hope for active participation from companies and power producers wishing to install solar power within Gyeonggi Province’s industrial complexes."

This content was produced with the assistance of AI translation services.