The Solar Water Heating Loan/Leasing Facility for Hotels
The Moroccan Solar Water Heating (SWH) Loan/Leasing Facility, called "PROSOL" (from the french "programme solaire") is a joint initiative of the Italian Ministry for the Environment andTerritory, the United Nations Environment Programme and the National Office of Electricity.
PROSOL - What it is
This SWH loan/leasing facility is a financial support mechanism:
- To create credit and leasing facilities at preferential terms using ONE as a channel for insuring recovery of the monthly payments;
- To help local banks build loan and leasing portfolios in the Renewable Energy area by providing an interest rate subsidy;
- To provide to the end user the guarantee of a quantity of produced solar energy based on the consumption of hot water; "Garantie de Résultats Solaires".
- Project launched on Dec 21, 2005
- Tender for Technical expert launched on Jan 18, 2005
- 17 hotels in the pipeline list
- 80 hotels targeted by the project
PROSOL - How it works
IMET, UNEP and ONE establish a 1.2 US$ million Facility:
- To provide to the end user an interest rate subsidy that will significantly lower the financing cost for a PROSOL loan or leasing;
- To provide independent technical expertise to all potential customers;
- ONE will promote the use of SWH technology by canvassing customers, insuring administrative follow up and launching a communication campaign;
- The monthly repayments are structured to match monthly savings of the energy used;
- The facility will phase out over a period of 18-24 months, leading to several collective installations.
PROSOL - What it does
- Encourage increased lending by local banks by reducing the risk in entering the SWH market;
- Support the development of partnerships between banks and SWH suppliers;
- Lower substantially by 4-5 points the interest rates charged for SWH financing;
- Help to shift the market from a cash market to a credit based market;
- Promote a competitive market for SWH by strengthening the demand side;
- Address the " high up-front cost " issue of the SWH, which is a barrier for the customer.
PROSOL - What it may achieve
- Ensure long-term viability of the entire sector;
- Leverage the US$ 1.2 million funds by 5 to 6 times in bank financing;
- Build confidence among the banks and expand lending to the Renewable Energy sector;
- Assist the Moroccan Government in developing its SWH policies.