National Development Bank of Palau in collaboration with Palau Energy Administration have launched three Energy Loan Programs (ELP) to help residents succeed in their housing or business projects.
Energy Efficient Subsidy Loan Program (EESP)
The first NDBP-ELP program is the Energy Efficient Subsidy Program (EESP) which is a home loan that incorporates specific energy efficient measures and products to a new home construction with possibility of subsidy towards the mortgage payment starting at $3,000 up to $6,000 depending on the measures that are incorporate in the new construction. The subsidy funds for this program are from the Governments of Italy and Austria, managed by IUCN.
Renewable Energy Subsidy Loan Program (RESP)
The second ELP program is our Renewable Energy Subsidy Program (previously called REFW). Under this program financing is available for the purchase and installation of renewable energy equipment for homes and businesses. The renewable energy equipments available under this program are, On Grid solar photo voltaic system, Off grid solar photo voltaic systems and solar hot water systems. Grant funds from GEF through the Palau SEDREA project provides a subsidy for a portion of the total cost of purchasing and installation of the RE System. The other portion for the cost of the complete installation is provided through a low interest loan at 6%, with loan terms of up to 20 years from the Bank.
RETRO-Energy Efficient Subsidy Loan Program (REESP)
Our third and most recent ELP program is a spinoff of the successful EESP program which is called RETRO-Energy Efficient Subsidy Program. Under this program, a micro finance loan with a 6% interest and 5 year term with a maximum of up to $10,000 loan is available for the renovation to upgrade and improve existing homes or business, with subsidy of up to $5,000.00 available for specific energy efficient measures that are incorporated to the building during the renovation. Funds for our RETRO-Energy Efficient Subsidy Program-are from EU under the NorthRep project managed by SPC.