BPI Solar Loan vs. Sterling Bank of Asia Green Loan: A Comparison

The solar financing landscape in the Philippines has evolved dramatically in 2025, with multiple financial institutions now competing to help Filipino families harness the power of the sun. Among the most notable offerings are the Bank of the Philippine Islands (BPI) Solar Mortgage and Sterling Bank of Asia's Green Financing Program. Both products represent significant steps forward in making solar energy accessible to ordinary Filipino households, but they take distinctly different approaches to achieving this goal.

For homeowners considering solar power, understanding the differences between these two financing options is crucial. The choice between them can significantly impact your monthly cash flow, the total cost of your solar investment, and the overall experience of transitioning to clean energy. This comprehensive comparison will break down the key features, benefits, and limitations of each program, empowering you to make an informed decision that aligns with your financial situation and solar goals.

BPI Solar Mortgage: The Comprehensive Property-Based Solution

BPI's Solar Mortgage, developed in partnership with climate fintech company Helios, represents what the companies call "Asia's first integrated solar mortgage solution." Launched in Q4 2023, this program has already onboarded over 100 homeowners and is positioned as a premium, comprehensive financing solution for solar installations.

Loan Structure and Flexibility
The BPI Solar Mortgage offers remarkable flexibility in how you can structure your financing. The program provides multiple pathways to solar ownership:

• Top-Up Equity Loan: If you have an existing BPI housing loan with at least ₱400,000 in paid-up amount, you can consolidate the solar loan with your existing mortgage. This approach can extend your payment terms up to 20 years, resulting in very manageable monthly payments.
• Property Equity Loan: Use your fully paid property as collateral to secure a dedicated solar loan.
• Multi-Purpose Loan (Auto-Backed): In a unique offering, BPI allows you to use your car (not older than 5 years) as collateral for a solar loan, with terms up to 5 years.

Financial Terms

• Interest Rate: 7% per annum with a 7-year fixing period
• Loan Amount: ₱400,000 to over ₱10 million
• Maximum Term: Up to 20 years (when consolidated with housing loan)
• Fee Waivers: Up to ₱70,000 in potential fee waivers
• Collateral: Property or vehicle required

Key Advantages
The BPI Solar Mortgage's greatest strength lies in its ability to create truly affordable monthly payments through long-term financing. When consolidated with a housing loan, the extended 20-year term can make the monthly amortization so low that your solar savings often exceed the payment from day one. This creates what BPI and Helios call a "cash flow positive" situation, where the solar system essentially pays for itself while providing additional monthly savings.

The program also benefits from BPI's established relationship with Helios, which acts as a solar marketplace and can help streamline the process of getting quotes and selecting installers. This partnership approach can simplify what is often a complex process for homeowners new to solar energy.

Sterling Bank of Asia Green Financing Program: The Accessible Personal Loan Alternative

Sterling Bank of Asia, in partnership with Solar Up Philippines, has taken a different approach with their Green Financing Program. Rather than requiring property as collateral, this program treats solar financing as a specialized personal loan, making it accessible to a broader range of Filipino households.

Loan Structure and Accessibility
The Sterling Bank program is designed for simplicity and accessibility:

• Unsecured Loan: No collateral required, making it accessible to renters and those who prefer not to use their property as security.
• Partnership with Solar Up Philippines: Direct integration with a specific solar installer for streamlined service.
• Shorter Terms: Focused on quicker payoff periods rather than long-term financing.

Financial Terms

• Interest Rate: 1.25% per month for terms up to 24 months; 1.5% per month for 36 months
• Loan Amount: ₱30,000 to ₱1,000,000
• Loan Terms: 6, 12, 18, 24, or 36 months
• Processing Fee: ₱1,500 or 0.75% of loan amount, whichever is higher
• Collateral: None required
• Repayment: Post-dated checks

Key Advantages
The Sterling Bank program's primary advantage is accessibility. By eliminating the collateral requirement, it opens solar financing to homeowners who may not qualify for traditional secured loans. The application process is also streamlined, with minimal documentation requirements and faster processing times.

The partnership with Solar Up Philippines creates a one-stop-shop experience where financing and installation are handled through coordinated partners, potentially simplifying the customer journey.

Head-to-Head Comparison: Key Differences

Interest Rates and Total Cost
This is where the two programs diverge significantly. While BPI's 7% annual rate appears higher than Sterling's monthly rates, the reality is more complex:

• BPI: 7% per annum = approximately 0.58% per month
• Sterling: 1.25% to 1.5% per month = 15% to 18% per annum

The Sterling Bank program's monthly interest rates translate to significantly higher annual rates, making it more expensive over time. However, the shorter terms mean you pay off the debt faster, potentially reducing the total interest paid.

Monthly Payment Impact
For a ₱300,000 solar system:

• BPI (20-year term): Approximately ₱2,300 per month
• Sterling (36-month term): Approximately ₱10,800 per month

The difference in monthly payments is dramatic and will significantly impact cash flow and the ability to achieve immediate solar savings.

Qualification Requirements

• BPI: Requires property ownership or vehicle collateral, established credit history, and higher income thresholds
• Sterling: Minimum ₱30,000 monthly income, no collateral required, but still requires good credit standing

Target Market

• BPI: Property owners seeking long-term, low-payment financing who want to maximize monthly cash flow
• Sterling: Renters, younger professionals, or those who prefer shorter-term debt without collateral requirements

Understanding these differences is crucial when conducting a fair solar quote comparison, as the financing terms can significantly impact the overall value proposition of your solar investment.

Making the Right Choice: Factors to Consider

Your Property Situation
If you own your home and are comfortable using it as collateral, BPI's program offers superior long-term value. The extended payment terms can make solar truly cash-flow positive from day one. However, if you're renting or prefer not to encumber your property, Sterling's unsecured approach may be your only viable option.

Cash Flow Priorities
Consider your monthly budget carefully. BPI's longer terms create much lower monthly payments, making it easier for your solar savings in 2025 to exceed your loan payment. Sterling's higher monthly payments may strain your budget but eliminate debt faster.

Risk Tolerance
BPI's secured loan means your property is at risk if you default, while Sterling's unsecured loan doesn't put your home at risk but may have other consequences for non-payment.

Solar System Size
For larger systems (₱500,000+), BPI's lower interest rates become increasingly advantageous. For smaller systems, Sterling's simplicity and speed might outweigh the higher cost.

The Installer Factor

Both programs have partnerships with specific solar providers, which can influence your choice:

• BPI partners with Helios, which acts as a marketplace connecting you with multiple accredited installers
• Sterling partners specifically with Solar Up Philippines

Before committing to either financing option, ensure you're comfortable with the associated installer network. The quality of your solar installation is just as important as the financing terms. Taking time to choose the right solar company should be a priority regardless of which financing option you select.

Beyond the Numbers: Service and Support

BPI's Comprehensive Approach
BPI's partnership with Helios provides access to a broader ecosystem of solar services, including system monitoring and ongoing support. The bank's established infrastructure and customer service capabilities also provide confidence in long-term support.

Sterling's Focused Partnership
Sterling's direct partnership with Solar Up Philippines creates a more streamlined but potentially limited experience. The advantage is simplicity; the disadvantage is fewer choices in installers and system options.

The ROI Perspective

When evaluating these options, consider your solar ROI under each scenario:

• BPI's longer terms may result in paying more total interest but create immediate positive cash flow, allowing you to enjoy savings from day one
• Sterling's shorter terms mean higher monthly payments but faster debt elimination, after which all solar savings are pure profit

Conclusion: Matching the Right Solution to Your Situation

Both the BPI Solar Mortgage and Sterling Bank's Green Financing Program represent significant advances in making solar energy accessible to Filipino families. The choice between them depends largely on your specific circumstances, priorities, and comfort level with different types of financial commitments.

Choose BPI if:

• You own your property and are comfortable using it as collateral
• You prioritize low monthly payments and immediate cash flow benefits
• You want access to multiple installer options through Helios
• You're planning a larger solar installation (₱400,000+)

Choose Sterling if:

• You don't own property or prefer not to use it as collateral
• You want to eliminate debt quickly and don't mind higher monthly payments
• You're comfortable working with Solar Up Philippines specifically
• You're installing a smaller system and value simplicity over cost optimization

Regardless of which financing option you choose, the most important step is to start with a professional solar assessment to understand your energy needs and ensure you're making an informed investment. Both programs represent viable paths to solar ownership, and the "right" choice is the one that aligns with your financial situation and long-term goals.

The solar financing revolution in the Philippines is creating unprecedented opportunities for energy independence. By understanding the nuances of these different approaches, you can confidently choose the path that will deliver the maximum benefit for your family's unique circumstances.