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eld of environmental protection. Since the production and use of energy are the main sources of greenhouse gas emissions, stimulation of investments in efficient uses of energy and renewable energy sources is the main priority of the Fund. In the fifteen years since it was established, the Eco Fund has stimulated environmentally friendly investments, primarily by providing low-interest loans and, since 2008, non-refundable financial incentives.

The annual volume of resources that Eco Fund holds for low-interest loans for environmentally friendly investments is between 25 and 30 million EUR, depending on the amount of repayments of past loans and received loans from international financial institutions. At the end of 2008, the Eco Fund held 90 million EUR of dedicated assets or capital; the total sum of assets was increased to 150 million EUR by taking loans from international financial institutions.

In addition to low-interest loans, the Eco Fund also works on behalf of the Ministry of Environment and Spatial Planning by granting non-refundable financial incentives for the use of renewable energy sources and for the increase of energy efficiency in buildings. In the 2009 national budget of Slovenia, a total of 4 million EUR was allocated for these purposes.


The popularity of renewable energy sources is on the increase. Which of these sources receive the most money from the Fund?

The Eco Fund provides low-interest loans based on public calls where the purposes and conditions of the loans are set. For the last five years, the main purpose of loans for both legal persons and regular citizens has been to reduce emissions of greenhouse gasses by investing in renewable energy sources (RES) and in efficient uses of energy (EUE).

Legal persons and private entrepreneurs can acquire low-interest loans for the use of RES, namely for the installation or reconstruction of systems and devices for space heating and for the preparation of sanitary hot water that use either biomass, solar or geothermal energy as their primary source of energy. The Fund also finances the installation or reconstruction of objects and devices for the production of electricity from RES.

Regular citizens can acquire low-interest loans for the installation of solar power systems or systems powered by geothermal energy or with the heat of groundwater or surface water. The Fund also provides financial solutions for the installation of devices or construction of objects for the production of electricity from solar, water or wind energy with the rated output of up to 50 kW.

Between 2004 and 2008, regular citizens, legal persons and private entrepreneurs received over 5900 loans in the total amount of almost 142 million EUR from the Fund. This sum includes 21.3 million EUR of loans for RES to companies and 10.8 million EUR of loans to regular citizens, i.e. 32.1 million EUR or 22.6% of the total amount.


Experts believe the fastest way to reducing emissions is to increase energy efficiency. What can the Fund do to help in this field?

Measures for the efficient use of energy (EUE) lower the use of energy - in Slovenia, 85% of it depends on fossil fuels, significantly contributing to greenhouse gas emissions. The Eco Fund recognises the importance of financing EUE measures; legal persons can receive low-interest loans covering up to 90% of the recognised costs. For other environmental protection measures, these shares are much lower and cover up to 50% of the recognised costs. Regular citizens mainly apply for low-interest loans for measures that reduce the use of energy; in these cases, our loans cover 100% of the recognised costs.

The share of the previously mentioned total amount of loans between 2004 and 2008 for EUE measures is 55.5 million EUR or 39% of all loans granted by the Fund. The share of loans granted to regular citizens between 2004 and 2008 for EUE measures is as high as 50% of the total amount of 53 million EUR.


Hybrid and electric cars will soon be a regular sight on our roads. Can the Fund help with the acquisition of these environmentally-friendly vehicles?

One of the EUE measures for which the Fund has been providing loans in recent years is the use of hybrid or electric vehicles. The number of hybrid cars in particular is increasing in Slovenia. The Fund provides low-interest loans for the purchase of these vehicles in order to help consumers realise that transport is one of the fields where the use of energy should be reduced. Unfortunately, the use of fuels is still increasing and continues to cause greenhouse gas emissions. Between 2004 and 2008, the Fund granted loans to regular citizens in the total amount of 1.2 million EUR for the purchase of 70 hybrid vehicles.


A practical question: let's say I'm renovating my house and I want to install solar panels on my roof and improve the insulation of the walls. Can I apply for a loan from the Fund?

Yes, absolutely. The Eco Fund can provide you with low-interest loans, as well as non-refundable financial incentives. If you plan to install better insulation and solar panels, you can choose between a low-interest loan and a non-refundable financial incentive. If you choose the non-refundable financial incentive, we can cover up to 20% of the recognised costs of the insulation, but no more than 10 EUR per one m2 and for no more than 200 m2 of walls. When it comes to solar panels, the financial incentive can be as high as 25% of the recognised costs, but no more than 150 EUR per one m2 for systems with flat-plate collectors and no more than 200 EUR per one m2 for systems with vacuum collectors.

The other option is to apply for a low-interest loan for both investments. The Eco Fund has a fixed annual nominal interest rate that is lower than the equivalent commercial interest rates. If you compare our effective interest rate and the average effective interest rate of commercial banks, recently published by the Bank of Slovenia, you will see that a 20,000 EUR loan from the Fund with a 10-year repayment period includes an indirect subsidy that amounts to over 13% of the principal value.

If you want to install a photovoltaic power plant on your roof for the cleanest way to produce electricity, as a regular citizen you can get a loan of up to 40,000 EUR from the Fund.


Who can benefit from the Eco Fund?

The programme for low-interest loans to legal persons and private entrepreneurs provides loans for purposes related to protecting the environment. Our low-interest loans can cover from 50% to 90% of the recognised costs of the investment. The highest individual loan is limited to 2 million EUR and the lowest, to 50,000 EUR.

The programme for low-interest loans to regular citizens covers 100% of the recognised costs of investments in heating systems powered by renewable energy sources, insulation of existing housing, installation of external building equipment to lower heat loss, construction of new low-energy or passive houses, installation of devices for the production of electricity from renewable energy sources and replacement of roof covering that contains asbestos.

We also provide loans for the purchase of electric or hybrid cars and motorbikes, devices for saving drinking water, urban waste water treatment plants and water supply for households that do not have access to public water supply networks.

The highest loan for each of the abovementioned measures is 20,000 EUR. In case several measures are implemented simultaneously, for construction of low-energy or passive houses and the installation of devices for the production of electricity from renewable sources, the highest available loan is 40,000 EUR. The longest period for repayment is 10 years. Loans are granted with a fixed annual nominal interest rate that is substantially lower than the average interest rates of commercial consumer loans.

All Eco Fund loans are granted based on public calls. The application forms and contract documents can be ordered by phone at +386 (0)1 241 48 20 or by e-mail at ekosklad@ekosklad.si. All public calls, contract documents and application forms are also available on the Eco Fund website:
www.ekosklad.si.

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