Solar power within reach: Lebanon plans three-year solar loans under 2027 budget

Report by Maroun Nassif, English adaptation by Yasmine Jaroudi

Households looking to install solar power to reduce their electricity generator bills but unable to afford the upfront cost may soon have access to low-interest loans under Lebanon's 2027 budget.

The government has allocated $11 million to the Social Affairs Ministry, specifically for the Public Corporation for Housing (PCH), to provide loans to citizens seeking to purchase solar power systems for electricity generation.

The allocation is expected to finance about 4,400 loans, with each loan averaging $2,500.

PCH Director General Rony Lahoud told LBCI that the institution will not impose complicated requirements on applicants. Applicants will only need to provide a salary certificate or secure a guarantor to ensure repayment of the loan. Lahoud said applicants will not be required to mortgage their cars or homes to obtain the financing.

Priority will be given to people with limited incomes. The loans will be repaid over three years, with monthly installments set at $75. After 36 months, borrowers will have repaid the full amount along with $200 in interest, bringing the total repayment to $2,700.

According to a study by the PCH, a $2,500 loan would allow a household to install a solar power system providing between 10 and 13 amps, along with an inverter and battery. The system would significantly reduce the amount households pay to neighborhood generator operators while also lowering demand for electricity supplied by Électricité du Liban (EDL) and private generators through the use of cleaner energy.

Finance Minister Yassine Jaber told LBCI that the project is only the beginning, adding that the allocated amount is expected to increase gradually to expand the number of citizens able to benefit from solar energy loans.

Applications will open once Parliament approves the 2027 budget. The PCH will then announce the full details and conditions of the loans and launch the application process.