Lebanon: Subsidy and Interest-free Loan for Residential Solar Water Heaters

The 200-USD-subsidy scheme started in October 2010. Till the end of 2014, 7,816 families profited from the loan, out of which 4,126 received a USD 200 grant.  The USD subsidy requires the qualification of the company according to the labeling programme of the Lebanese Center for Energy Conservation (LCEC). However, all clients can benefit from the interest-free loans, regardless whether their solar system supplier is qualified or not, and whether the chosen systems are certified or not.

The first phase of the programme will end once the total 7,500 systems are subsidized which is not quite the case at the end of 2017. The Ministry of Energy and Water has allocated a new budget for the extention of the programme.

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Name of programme

The National Financing Mechanism for Solar Water Heaters

Type of incentive

Soft Loans + Subsidy

Eligible technologies

Solar Water Heaters

Applicable sectors



USD 200 per System

Maximum incentive

USD 200 per System

Terms of loan

Interest-free loan up to 5 years

Requirements for system

A certified system is required to receive the grant

Solar Keymark

For local manufacturing it is subject to EN12975 and EN12976 test results

The interest-free loan does not require any technical standard of the system

Requirements for installation

Company should be qualified by LCEC to receive the grant. There are no requirements for the installation if the client wants to receive the interest-free loan

Finance provider

Subsidy: Government of Lebanon

Loan: Central Bank of Lebanon

Total funds

USD 1.5 million (for the grant scheme) limited to subsidise 7,500 systems.

Budget for second phase of the scheme already allocated by Minister of Energy and Water

Funding source

Government of Lebanon

Effective date

March 2010

Implementation started in October 2010

Expiration date

First phase will be completed when 7,500 systems are systems are subsidised. Budget for the second phase is already allocated by the Minister of Energy and Water



Last review of this tabloid

November 2017


Rani Al Achkar


Baerbel Epp

Bärbel Epp is Founder and Director of the German communication and market research agency solrico and editor-in-chief of solarthermalworld.org