Customized Business Investments in Energy Efficiency

Much equipment used in Jordan’s industries is old and inefficient, making it difficult for them to compete in a global economy. A general re-equipment will improve energy efficiency: high-productivity, high-quality modern technologies tend to be energy-saving, while aging equipment may be prone to breakdowns as well as being energy inefficient. A recent survey of 52 SMEs identified investments worth almost EUR 6 million that would pay back in periods of between 7 and 14 months from the energy savings alone.


Typical investments

SUNREF loans of up to USD 5 million are available for a wide range of investments, for example in:

  • Upgrade any production equipment with more energy efficient models
  • Thermal insulation of your premises
  • Modernizing your lighting system
  • Upgrading your air-conditioning system
  • Installing solar water heaters
  • Replacing old boilers with modern, energy-efficient ones can save money
  • Installing co-generation equipment, which produces electricity as well as heat
  • Replacing old chillers and compressors with modern ones can slash electricity bills
  • Installing variable speed drive controls can improve the efficiency of your existing motors, fans and pumps
  • Production and distribution systems for compressed air, heat, steam hot water
  • Heat recovery systems


Applications procedures

The procedure to apply for a non-standard loan involves just four simple steps:

Step 1: Apply for loan

To apply for a loan less than USD 1 million, simply download this application form. (for a loan greater than USD 1 million, please download this application form) fill in and send to the bank of your choice or to the SUNREF office directly, along with the requested supporting documents.
Should you have any questions about the process or eligibility of your investment, feel free to contact the SUNREF office, or a local partner bank who can advise you about the application process.

Step 2: Sign Letter of Engagement and Project Assessment

The SUNREF experts will assess the eligibility for financing your project under SUNREF based on the information provided.

Where needed this may involve a site visit or request for additional information. In addition, SUNREF engineers might recommend possibilities to enhance the project design to ensure a faster payback from energy cost savings.

Step 3: Loan agreement is signed and project implemented

If the project is eligible, the bank will proceed with its normal credit procedures and negotiate the terms of the loan.

Step 4: Implementation is verified and grant payment reimbursed


Upon completion of the project, documentation for EE/RE investments is submitted to a separate verification auditor to issue completion certificate.  5% reimbursement of the total loan is directly transferred by the bank to the beneficiary’s account.

Eligibility criteria for EE projects

Investments in energy efficiency for items not on the Fast track list must achieve:

  • An Internal Rate of Return (IRR) of at least 10% from the energy cost savings of retrofitting projects or
  • An IRR of at least 20% from energy efficiency gains for investments involving an expansion of production capacity of at least 50% or
  • A reduction in energy consumption of at least 20% as compared to standard technologies for greenfield investments
  • EE investments that involve a fuel switching to natural gas are possible, provided the IRR is acceptable.

What kinds of businesses can benefit?

SUNREF is available to companies that meet the local bank’s credit approval criteria and are:

  • Incorporated in Jordan.
  • Majority is privately owned and controlled.
  • Operating in industrial or commercial sectors (Excluded sectors)
  • In compliance with national environmental, employment and social legislation.



Excluded sectors.