Bank Muscat in association with the International Finance Corporation (IFC), launched Oman’s first Green Finance scheme for environment-friendly homes according to a media release.
The scheme will encourage customers to install solar panels on their rooftops and use solar energy for a large part of their household energy requirements.
The installation of solar panels will be facilitated through the Sahim renewable energy project of the Authority for Electricity Regulation (AER).
The Green Finance scheme will not only reduce energy costs and be environmentally friendly, but also reduce dependency on traditional sources of energy like diesel and natural gas stated the release. Implementing environmentally-friendly methods will also help the government in reducing subsidies as well as saving traditional energy sources for projects of national importance.
Abdullah Tamman Al Mashani, DGM – Institutional Sales and Product Development, Bank Muscat said, “The Green Finance programme is aimed at providing credit facility to customers to encourage them to implement environmentally friendly initiatives. We have launched this programme in cooperation with the Authority for Electricity Regulation (AER). The bank will extend credit to its customers to install solar panels on their rooftops and use solar energy for a large part of their household requirements. It will be implemented through AER’s Sahim initiative and will greatly contribute to reducing energy costs and greenhouse gas emissions in the coming years.”
Loan Scheme Exclusively for Eco-Friendly Initiatives
Bank Muscat is the first and only bank in Oman to launch a loan scheme that aims to popularise environmental-friendly initiatives. Under the new finance scheme, loans ranging from RO 1,000 to RO 25,000 will be given to eligible individuals at highly competitive interest rates subject to a maximum debt burden ratio (DBR) of 50%. Loans will be given under the scheme for a maximum of 5 years.
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The push for renewable sources of energy is also expected to provide new business opportunities for SMEs.
Leading by Example
Earlier in 2018, Meethaq Islamic Banking from Bank Muscat became the first bank in the Sultanate to fully operate a branch on renewable energy. The rooftop solar panel installation at Meethaq’s Al Khoud branch has the capacity to produce 50 kW electricity and helps reduces carbon dioxide emissions by 52.56 tonnes per year. Nafath Renewable Energy, a leading SME player in energy conservation, implemented the project.