How to Finance Your Solar System in the Philippines
The #1 reason Filipino homeowners don't go solar isn't skepticism — it's cash flow. A 5kW hybrid system costs ₱280,000–₱350,000 upfront. Most families don't have that sitting in savings. The good news: you don't need to.
Option 1 — Bank Salary Loan (Most Popular)
A ₱300,000 salary loan at 12-15% per year over 36 months costs roughly:
Details | |
|---|---|
Loan amount | ₱300,000 |
Monthly payment | ₱9,800 – ₱11,000 |
Monthly solar savings | ₱6,400 – ₱7,200 (for ₱8,000 bill) |
Net monthly cost | ₱2,600 – ₱4,600 |
After loan payoff (36 months) | ₱6,400 – ₱7,200/month pure savings |
Key insight: Even while paying the loan, your total monthly electricity + loan payment is often equal to or less than your old electric bill — and after 3 years, you enjoy 20+ years of near-free power.
Banks Offering Solar-Friendly Loans
Bank | Product | Max Amount | Rate | Notes |
|---|---|---|---|---|
BDO | Personal Loan / Salary Loan | ₱1,000,000 | ~1.3%/mo | No collateral for salary loans |
BPI | Personal Loan | ₱2,000,000 | ~1.2%/mo | Requires 1 year employment |
Metrobank | Personal Loan | ₱1,000,000 | ~1.25%/mo | Competitive for large loans |
DBP | Green Energy Financing | ₱10,000,000 | Subsidized | Best for commercial |
LANDBANK | iREBATe Program | ₱2,000,000 | Subsidized | For RE equipment |
Option 2 — SSS Multi-Purpose Loan
If you're an active SSS member with at least 36 months of contributions:
Borrow up to ₱200,000 (based on average monthly salary credit)
Interest rate: 10% per year — one of the lowest available
Repayment: up to 24 months via salary deduction
No collateral required
For a ₱150,000 loan: approximately ₱6,900/month for 24 months at 10%. A ₱8,000/month bill becomes ₱800-₱1,600 with solar — the savings nearly cover the monthly payment.
Option 3 — Pag-IBIG Housing Improvement Loan
If you own your home and are a Pag-IBIG member, you may qualify for a home improvement loan:
Loan amount: up to ₱1,000,000 (based on contribution and home value)
Rate: 6-10% per year (subsidized)
Solar installation qualifies as "home improvement"
Repayment: up to 30 years (take 3-5 years to minimize interest)
Option 4 — Installer Installment Plans
Many solar installers in the Philippines now offer in-house installment:
Typical structure: 30-50% downpayment, balance over 12-24 months
Interest rates vary: 0% (promotional) to 18% per year
No bank approval required — faster to process
Tip: Always compare the total amount paid (principal + interest) vs. cash price. A "₱0 interest" promo sometimes has the interest baked into a higher system price.
Option 5 — Solar PPA (Power Purchase Agreement)
A newer model gaining ground in the Philippines for commercial users:
A solar company installs the system on your roof at zero cost to you
You agree to buy the electricity they generate at a fixed rate (e.g., ₱7-9/kWh) for 10-20 years
Still cheaper than Meralco's ₱11-14/kWh rate
After the contract ends, the system is yours
Best for: Businesses, schools, and commercial buildings with large roof space and no upfront capital.
Quick Comparison
Option | Upfront Cost | Effective Rate | Best For |
|---|---|---|---|
Cash / Savings | Full amount | 0% — best ROI | Anyone with savings |
SSS Multi-Purpose Loan | ₱0 | 10%/year | Employed, SSS member |
BDO/BPI Personal Loan | ₱0 | 14-16%/year | Salaried professionals |
Pag-IBIG Housing Loan | ₱0 | 6-10%/year | Homeowners with Pag-IBIG |
Installer Installment | 30-50% DP | 0-18%/year | Quick approval needed |
Solar PPA | ₱0 | N/A | Commercial / large buildings |
Ready to find out how much a solar system would cost for your home? Use our free Solar Quotation Tool to build your BOM and get matched with verified installers in your area.
Engr. Jason Morales — Founder, SolarEnergyPH