Bahrain's Tamkeen launches new Solar Financing Scheme

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Manama - Tamkeen has signed an agreement with several leading banks in Bahrain for the launch of the Solar Financing Scheme.

Part of Tamkeen’s Tamweel Scheme, it aims to empower enterprises and enable them to purchase solar energy panels to generate energy – which in turn will help them reduce costs.

The partnership comes as part of Tamkeen’s strategic efforts to encourage the transformation to renewable energy while reducing energy expenditures.

Tamkeen chairman Shaikh Mohammed bin Essa Al Khalifa said: “This step is aligned with Vision 2030 and the kingdom’s sustainable development goals. This support is going to encourage enterprises to use renewable and clean energy, which will help them reduce their costs, allowing them to focus on expansion.”

During the signing ceremony, Tamkeen chief executive Dr Ebrahim Janahi described the step as a strategic one that will bring Bahrain closer to achieving sustainable development goals and position it as a leading nation within the region.

He said the support will create more opportunities in the field of renewable energy. “It will also help in reducing costs, allowing enterprises to shift their focus on growth,” he said.

The scheme covers the cost of solar energy panels and is compliant with Sharia within a competitive rate since Tamkeen supports 70 per cent of the annual profit rate.

Funding

The amount of funding ranges between BD5,000 and BD500,000 with a repayment period of up to 10 years, and a grace period that is subject to the terms of the bank.

Dr Abdulhussain Mirza, president of the Sustainable Energy Authority, expressed his appreciation and gratitude towards Tamkeen and the participating banks for this partnership to implement the financial scheme and provide financing facilities that will encourage companies, small, medium and large enterprises to embed sustainable and clean energy projects.

“We, at the Sustainable Energy Authority, are happy to be part of this initiative which will help achieve Sustainable Development Goals,” he said.

He added that signing the agreement will contribute to achieving the national goals adopted by the government to achieve renewables contributing five per cent of total energy by 2025 and a 6pc improvement in energy efficiency.

According to Kuwait Finance House-Bahrain managing director and chief executive Abdulhakeem Al Khayyat the scheme will support innovative solutions that are using clean energy.

The strategic partnership with Tamkeen is aligned with the government’s directions towards diversifying renewable energy sources and achieving sustainable development goals.

Ithmaar Bank chief executive Ahmed Abdul Rahim said: “We are happy to sign the agreement of the solar financing scheme with Tamkeen as part of our financing schemes for enterprises.”

“We’re aware of the important role we must play to help develop solar energy and that we need to have an effective presence in conserving energy and spreading guidance on its consumption to benefit the future generations.”

Commenting on the agreement, Khaleeji Commercial Bank chief executive Sattam Al Gosaibi said, “We are proud to be part of this initiative which will have many positive implications, not only at an environmental level but also at a commercial level as companies are going to adopt clean energy within their operations. This will definitely develop this industry and will help support the national economy.”

Al Baraka Islamic Bank chief executive Hamad Al Oqab commented: “This step is in line with the bank’s approach of encouraging and financially supporting clean and sustainable energy in Bahrain.”

Partnership

Hassan Jarar, chief executive of Bahrain Islamic Bank, said: “We’re pleased to be signing this partnership with Tamkeen which aims to provide enterprises with financing solutions and competitive prices for the purchase and installation of solar panels for power generation.

“We look forward to a fruitful partnership which will encourage institutions and companies in the kingdom to adopt sustainable energy.”

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