UOB Malaysia is upgrading its solar financing product with the launch of U-Solar 2.0, an expansion to its existing programme, that offers quick access to sustainable financing for local solar engineering, procurement, construction and commissioning (EPCC) contractors and project developers.
Version 1 which was launched in 2019, offered 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 is to 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, 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.
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 will also offer 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.
