BDB provides loans with lower collateral and no down payment for households investing in RES

The Bulgarian Development Bank (BDB) has signed guarantee agreements with the Bulgarian-American Credit Bank, Investbank, Municipal Bank and D Commerce Bank to finance households investing in renewable energy under the National Recovery and Resilience Plan.

The program is designed to give individuals easier access to loans to finance projects focused on replacing solid fuel energy sources (stove, boiler or fireplace) with renewable ones.

Applicants are required to have signed a grant agreement under the National Household Renewable Energy Support Scheme implemented by the Ministry of Energy.

The measure provides for citizens to receive a targeted loan of up to BGN 22,000 for the installation of photovoltaic systems with a capacity of up to 10 kWp, which may also include electricity storage systems (batteries), and up to BGN 3,000 for solar installations for domestic hot water supply.

"BDB's role is to help citizens by providing them with access to funds through the commercial bank branches across the country so that they can quickly implement their projects to switch to a greener energy source", BDB's Executive Office, Tanko Arabadzhiev, explained.

Thanks to the BDB guarantee, commercial banks that apply for the programme will provide loans for the implementation of investments before the grant is disbursed, with lower collateral requirements, including no security in rem and down payment by the borrower.

The loans have a term of up to 5 years and a 12-month grace period.

Detailed information on the National Household Renewable Energy Support Scheme implemented by the Ministry of Energy is published here.