UOB Malaysia today launched U-Solar 2.0, an expansion to its existing U-Solar programme, to simplify access to sustainable financing for local solar engineering, procurement, construction and commissioning (EPCC) contractors and project developers.
Launched in October
2019, U-Solar is Asia’s first integrated solar energy financing
platform that powers the development and adoption of renewable energy across
Southeast Asia. U-Solar offers a suite of financial solutions to
encourage businesses and consumers to switch to solar power and drive the adoption
of renewable energy in Malaysia. The latest enhancement will expand the programme’s
offerings to industry players across the entire solar value chain.
The programme will ensure
a smooth flow of financing with improved payment terms for solar contractors
and developers to help them meet the growing demand for solar energy[1],
while connecting them to leading equipment suppliers across the region.
Ms Ng Wei Wei, Chief
Executive Officer, UOB Malaysia said, “Since the launch of U-Solar, we have
provided close to RM1 billion in solar financing for corporates, small- and
medium-enterprises (SMEs), and homeowners. We expect to boost our sustainable
financing for solar energy by 50 per cent in the next 12 months, driven by the
favourable outlook of the solar energy industry and the government’s strong
push towards renewable energy.
“We will also continue
to focus heavily on our efforts with the relevant associations and government
bodies to help SMEs embrace sustainability as their participation in the low
carbon economy is crucial to the country’s net zero ambition. With the expanded
programme, we look forward to supporting the solar ecosystem players in seizing
new opportunities and accelerate the development of the country’s green sector.
”
Connecting the whole solar (eco)system
U-Solar 2.0 will
provide contractors and developers with extended payment terms when they
purchase from the programme’s approved equipment suppliers. Part of the
programme’s suite of solutions is green trade financing. This is designed to
address cash flow issues and working capital gaps for developers and contractors
who typically have longer projects receivable terms and may face short payment
terms from equipment suppliers. With U-Solar 2.0, they will be able to finance
the purchase of equipment and work on multiple solar projects simultaneously,
speeding up the rate of solar adoption in the region.
This end-to-end
collaborative approach aims to drive sales volumes for equipment suppliers. It
will also connect qualified contractors with end users looking to install solar
panels. Today, nine equipment suppliers – Antai, Canadian Solar, Fimer, Huawei,
JA Solar, Jinko Solar, LONGi, Sungrow and Trina Solar, joined the U-Solar
programme to provide quality solar modules and inverters to developers and
contractors in Malaysia. JJ-Lapp also joined the programme as a distributor to
facilitate greater and more efficient trade activities within the solar
ecosystem.
UOB also offers
exclusive packages to both businesses and homeowners through partnerships with
nine EPCC contractors in Malaysia. This includes the latest five additions
which came on board today, namely - eLeaps, GSPARX, Hasilwan, Pekat and
Samaiden.
As of 31 December 2022,
the U-Solar programme has helped facilitate the generation of almost 307
gigawatt hours of solar power in Malaysia. This translates to a greenhouse gas
reduction of 204,000 tonnes of carbon dioxide equivalent, amounting to almost
3.4 million tree seedlings grown for 10 years and about 44,000 cars taken off
the road for a year.
U-Solar 2.0 – Supporting SMEs in their decarbonisation
journey
Ms Ng said, “Switching
to solar energy is one of the most effective ways to decarbonise. However, we
recognise that SMEs need financial assistance to support their green transition
needs which is why we have allocated RM1 billion under our U-Green financing
programme. We also offer non-financial support such as awareness and knowledge
workshops under our partnership with the Malaysian Research Accelerator for
Technology and Innovation (MRANTI). We have been supporting SMEs for over seven
decades and our holistic support will continue to ensure that they will remain
competitive on the global front.”
Eligible
SMEs and mid-sized companies looking at installing solar panels at their
premises under the U-Solar programme can tap on the U-Green financing with a
guarantee of up to 80 per cent from Syarikat Jaminan Pembiayaan Perniagaan
Malaysia (SJPP)[2].
For more information on
U-Solar and its EPCC contractors, please visit uobgroup.com/u-solar-my.
[1] According to the Malaysia Solar Energy Market - Growth,
Trends, COVID-19 Impact, And Forecasts, the solar energy market in the country is expected grow
more than 9 per cent annually from 2022 to 2027.
[2] Please see news
release: ‘UOB Malaysia partners SJPP to provide RM1 billion in green financing to
SMEs’, 19 September 2022
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