Singapore-based United Overseas Bank (UOB) has launched U-Solar, the first solar industry ecosystem in Asia to power the development and adoption of renewable Energy across Southeast Asia. Through U-Solar, the bank offers a suite of financial solutions to support the solar power value chain, from solar project developers, engineering, procurement and construction (EPC) contractors, as well as the end-users of solar power, including consumers and companies.
Malaysia is the first ASEAN (Association of Southeast Asian Nations) country in which UOB is rolling out its U-Solar ecosystem. UOB Malaysia’s collaboration with leading local solar Energy service providers, starting with ERS Energy, PlusSolar and Solarvest, will offer installation, commissioning, operations and after-sales service packages for solar power systems to help business and homeowners.
U-Solar offers two flexible solutions to help Malaysian companies adopt solar power with minimal upfront capital. Companies can purchase a solar power system for their factory or office with the U-Solar green loan offered by UOB Malaysia, and can also apply for a 2% rebate under the government’s Green Technology Financing Scheme 2.01 for their purchase. They can also benefit from the government’s tax incentives under the Green Investment Tax Allowance and Green Investment Tax Exemption schemes, which were introduced by the Malaysia government in 2018 to encourage the buying and selling of green technologies. Alternatively, businesses can sign up for a long-term solar power leasing agreement with the Bank’s U-Solar partners.
For home owners, UOB Malaysia offers on U-Solar’s online portal a 0% interest instalment plan of up to 36 months for the purchase of a solar power system. Customers can also enjoy zero upfront costs for services provided by the Bank’s U-Solar partners including on-site assessment, installation and maintenance of their solar power panels and systems at their residences.
In supporting the growth of the solar power industry, UOB provides solar project developers with solutions in green financing, such as sukuk, project loans and portfolio financing, as well as cash management services. For EPC contractors, UOB offers end-to-end contract-based financing solutions, from bid bonds and letters of credit issuance to performance guarantees and working capital facilities. Through U-Solar’s online portal, the bank also connects these industry players to potential customers seeking solar power solutions for their factories, offices or homes.
(Source: United Overseas Bank)
