𝗧𝗵𝗲 𝗕𝗮𝗻𝗸 𝗘𝘅𝗽𝗲𝗰𝘁𝘀 𝟱𝟬% 𝗚𝗿𝗼𝘄𝘁𝗵 𝗜𝗻 𝗜𝘁𝘀 𝗦𝘂𝘀𝘁𝗮𝗶𝗻𝗮𝗯𝗹𝗲 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝗙𝗼𝗿 𝗦𝗼𝗹𝗮𝗿 𝗜𝗻 𝗧𝗵𝗲 𝗡𝗲𝘅𝘁 𝟭𝟮 𝗠𝗼𝗻𝘁𝗵𝘀, 𝗕𝗮𝗰𝗸𝗲𝗱 𝗕𝘆 𝗧𝗵𝗲 𝗖𝗼𝘂𝗻𝘁𝗿𝘆’𝘀 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗶𝗻𝗴 𝗗𝗲𝗺𝗮𝗻𝗱 𝗙𝗼𝗿 𝗦𝗼𝗹𝗮𝗿 𝗘𝗻𝗲𝗿𝗴𝘆
KUALA LUMPUR, 24TH MARCH 2023 – UOB Malaysia today launched U-Solar 2.0, an expansion to its existing U-Solar program, to simplify access to sustainable financing for local solar engineering, procurement, construction, and commissioning (EPCC) contractors and project developers.
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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 program’s offerings to industry players across the entire solar value chain.
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The program 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 while connecting them to leading equipment suppliers across the region.
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Ms. Ng Wei Wei, Chief Executive Officer, of 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% in the next 12 months, driven by the favorable outlook of the solar energy industry and the government’s strong push towards renewable energy.
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“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 program, we look forward to supporting the solar ecosystem players in seizing new opportunities and accelerating the development of the country’s green sector. ”
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Connecting the whole solar (eco)system
U-Solar 2.0 will provide contractors and developers with extended payment terms when they purchase from the program’s approved equipment suppliers. Part of the program’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 project 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.
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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 program to provide quality solar modules and inverters to developers and contractors in Malaysia. JJ-Lapp also joined the program as a distributor to facilitate greater and more efficient trade activities within the solar ecosystem.
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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.
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As of 31 December 2022, the U-Solar program 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.
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U-Solar 2.0 – Supporting SMEs in their decarbonization journey
Ms. Ng said, “Switching to solar energy is one of the most effective ways to decarbonize. However, we recognize that SMEs need financial assistance to support their green transition needs which is why we have allocated RM1 billion under our U-Green financing program. 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.”
