First Home Solar System installed in Koror by ADB’s “Disaster Resilient Clean Energy Financing Project” through Japan Fund for Prosperous and Resilient Asia and the Pacific

On 29 July 2022, the first home solar system has been installed in Koror, Ngesaol by ADB’s “Disaster Resilient Clean Energy Financing Project”, funded by the Government of Japan. Ambassador of Japan KARASAWA Akira, Minister of Finance Kaleb Udui Jr., CEO of National Development Bank of Palau (NDBP) Claire Harvey, CEO of Palau Public Utilities Corporation (PPUC) Frank Kyota and many other distinguished guests witnessed and congratulated the first installation.

The main objective of this Energy Financing Project is to provide low-interest financial assistance for Palauan homeowners to purchase and install solar home systems. The Government of Japan contributed around 3 million USD for this project through ADB’s “Japan Fund for Prosperous and Resilient Asia and the Pacific” (JFPR), which enables NDBP to offer the loan program for 800-unit On-Grid solar home systems in 400-500 households.

Receiving NDBP’s low-interest loan for 10 years at maximum, qualified Palauan homeowners can purchase and install one or two residential solar home systems. The On-Grid solar systems are expected to reduce the household’s monthly electricity bill significantly, and each household can install solar panels without increasing net burden including the monthly loan payment. The average lifespan of the solar panels is about 20 years, which means that the households will benefit from the reduction in electricity bills for more than 10 years after the loan repayment is completed.

This program will not only support Palauan households but also contribute to achieving the Palau’s ambitious goal of 100% renewable energy by 2032 and enhancing the resilience of electric power infrastructure.

At the ceremony, NDBP CEO Harvey said, “We are grateful for generous financial support from the Government of Japan and all efforts of the Government of Palau, ADB and NDBP staff.” Ambassador Karasawa said, “It is our great pleasure to witness the first outcome of this project. The recent surge in the fuel and electricity price will attract more and more people who see these new solar panels to take out this loan program.”