The Investiciono Razvojni Fond or the Investment and Development Fund (IRF) in Montenegro has launched a new credit line to support solar power installations by farmers and micro, small and medium enterprises (MSME) under a new initiative called Green Business Development Support Program.
Maximum amount available for the installations will range between €3,000 to €400,000 for an annual interest rate of 3% which can be repaid within up to 10 years including a grace period of up to a year.
IRF said the program will be implemented in cooperation with Montenegro government's Environmental Protection Fund (Eco Fund) which will select and award funding, with the support of United Nations Development Programme (UNDP).
Main purpose of the support program is to encourage greater use of clean energy and improving energy efficiency to lower CO2 footprint while encouraging cost savings in the MSME and agricultural sector. Executive Director of the IRF, Irena Radović said this green financing solution is aimed at promoting low carbon development and economic recovery of Montenegro.
Beneficiaries will be selected basis proposals received for PV systems of up to 10 kW and over 10 kW capacity. Details of the program are available on IRF's website.
In June 2020, the Montenegro government approved amendments to law on energy easing process for citizens to install solar panels, generate and sell excess power to grid (see Montenegro Eases Self Power Generation Rules).
The government agency is trying to encourage solar power installations at a time when during its 33rd cabinet session on July 22, 2021, the government said it won't encourage construction of new renewable energy facilities as Montenegro has achieved the national target of having 33% energy from renewables in the total energy consumption of the country (see Montenegro To Pull Back Support For Renewable Energy?).
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