All You Need to Know About the “Warm” Loans in Ukraine

The Warm Loan program, launched in Ukraine in 2014, is gaining popularity. According to the State Agency on Energy Efficiency and Energy Saving of Ukraine, the Ukrainians have been already granted about UAH 600 mln of “warm” loans.

Source: State Agency on Energy Efficiency and Energy Saving of Ukraine

Governmental and local support allows thousands of Ukrainian families to save up to 80% on their energy efficiency activities. That is why getting “warm” loan from banks is an up-to-date issue for many Ukrainians today.

Who can get a “warm” loan?

“Warm” loans can be got by individuals and apartment building co-owner associations.

“Warm” loan purposes

Funds are allocated for insulation of dwellings: individuals can get loans for heating system modernization (consumables, boilers), apartment building co-owner associations – no restrictions (for any modernization of dwellings aimed at its insulation).

Thus, in April, the government allocated:

– UAH 236 mln – for insulation of private houses;

– UAH 103 mln – for energy efficiency activities of the apartment building co-owner associations;

– almost UAH 9 mln – for solid fuel boilers.

What to buy?

Reinforced plastic windows and doors, thermal-insulation materials, eco lamps, solid fuel boilers, solar panels.

What part of insulation costs is compensated by the government?

  • Individuals will be compensated 20% of a solid-fuel boiler’s cost (35% for those who have utility subsidies) and 35% of apartment insulation costs;
  • Apartment building co-owner associations will be compensated from 40 to 70% of material costs. The cost of works is not subject to compensation.

In 2019, the government (in cooperation with the State Agency on Energy Efficiency and Energy Saving of Ukraine) has already implemented 140 local programs aimed at making “warm” loans more affordable. The amount of more than UAH 140 mln has been allocated to these programs from the local budgets. This year, the governmental additional support of the Warm Loan program provides up to UAH 400 mln.

Where to get a “warm” loan?

This year, 4 Ukrainian banks – Ukrgazbank, Ukreximbank, Oshadbank, PrivatBank – are granting “warm” loans.

First of all, you need to carefully analyze the Warm Loan program terms to clearly understand all energy efficiency activities that are compensated by the government.

Next, we advise investigating the terms of providing “warm” loans in all involved banks.

Some of the banks provide additional services that may be very useful to the client. For instance, Ukrgazbank has launched an open procedure for the accreditation of EPC contractors. The Bank carries out a detailed analysis of their activities to confirm professionalism and reliability of each EPC contractor.

Moreover, the Bank operates an own “technical office” to help its clients chose the best technical solution to implement in their projects. Rodion Morozov, Head of Ecological Projects Department at Ukrgazbank, told about this at the CISOLAR 2019 Conference.


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