Fund Your Roof Power: A Guide
For most Filipino homeowners, the decision to go solar isn't stopped by a lack of desire—it's stopped by the sticker shock. A 5kW hybrid system that can power a typical family home and survive a brownout costs between ₱380,000 and ₱500,000. That is a significant amount of cash to shell out upfront.
But in 2025, the financial landscape has shifted. Banks, government agencies, and installers have realized that solar isn't a luxury purchase; it's a home improvement that pays for itself.
If you are tired of paying Meralco ₱12 per kWh but don't have half a million pesos lying around, you don't have to wait. Here is the practitioner’s guide to funding your roof power using "Other People's Money" (OPM).
1. The "Green" Bank Loans (Your First Stop)
The biggest change in the last two years is that major Philippine banks now treat solar as a standard home improvement product, often with better rates than a personal loan.
BPI Green Solutions (Solar Mortgage)
BPI has aggressively entered this space. If you already have a housing loan with them, you can apply for a "Top-Up" to fund your solar system.
The Perk: You get housing loan interest rates (often 6.5% - 7.5% p.a.) rather than personal loan rates (which can be 20%+ p.a.).
The Catch: You usually need to provide a formal quotation from an accredited installer.
Eligibility: They often require your existing mortgage to be in good standing for at least a year. You can read more about how this stacks up against other options in our solar bank loans comparison.
Security Bank & Helios
Security Bank has partnered with fintech startups like Helios to offer a specific "Solar Mortgage." This is unique because it's designed to be cash-flow neutral.
The Concept: If your current electric bill is ₱15,000, they structure the loan so your monthly amortization + remaining electric bill is roughly ₱15,000 or less. You swap a bill for a loan payment, but at the end of 7 years, you own the asset.
Requirements: Standard income docs (ITR/Payslips) and a clean credit history.
Pag-IBIG Home Improvement Loan
Yes, you can use Pag-IBIG. The Home Improvement Loan covers "installation of renewable energy systems."
Pros: Very low interest rates (as low as 6.375% for 3-year fixing) and long repayment terms (up to 30 years, though 5-10 is recommended for solar).
Cons: The paperwork is heavy. You need a Bill of Materials (BOM), building plans, and a lot of patience. It is not quick cash, but it is the cheapest money you can get. Check our specific guide on the Pag-IBIG solar application process to see if you have the patience for it.
2. In-House Installer Financing (The Fast Track)
If you don't want to deal with bank managers, many larger solar installation companies now offer their own payment plans.
Credit Card Installments: Almost all major installers accept credit cards. If you have a high credit limit, you can swipe for 0% interest for 12 to 24 months. This is the fastest route—no approval needed, just a swipe.
Deferred Payment Plans: Some installers ask for 50% down and spread the remaining 50% over 6 months via Post-Dated Checks (PDCs). This is great for businesses with cash flow but might be tight for salaried employees.
Warning: Be wary of "Rent-to-Own" schemes from unknown companies. If they technically own the panels until you pay the last peso, they might have the right to repossess them if you miss a payment. Always check who legally owns the equipment during the term. See our tips on evaluating installer in-house financing.
3. Net Metering: The Revenue Stream
While not a "loan," Net Metering is a critical part of the funding equation because it speeds up your repayment.
Under the Renewable Energy Act (RA 9513), you can export your excess power to the grid. Meralco (or your DU) buys this power from you.
The Reality: They buy it at the generation charge (approx. ₱6-7/kWh), not the retail rate (₱12/kWh).
The Benefit: These credits are deducted from your bill. For a properly sized system, this can knock your bill down to near zero.
Funding Impact: Lenders look at this "savings" as income. When applying for a loan, show your detailed savings projection to prove you can afford the monthly amortization. Learn how to navigate the Meralco Net Metering guide to ensure your system is compliant.
4. The "hidden" cost of going cheap
A warning on funding: Do not finance a bad system.
If you take out a 5-year loan for a cheap "Facebook Promo" solar kit (₱150k for 5kW), and the inverter dies in Year 3, you are still paying the bank for a dead asset.
Tier 1 Only: Financing companies often require you to use Tier 1 panels (Trina, Jinko, Canadian, etc.) and reputable inverters (Huawei, Growatt, Deye) because they know these brands last.
Warranties Matter: Ensure the workmanship warranty matches the loan term. If you have a 5-year loan, find an installer with a 5-year workmanship warranty.
5. Commercial Leasing (For Business Owners)
If you run a business (SME), you have another option: Power Purchase Agreements (PPA) or Leasing.
PPA: A third party installs the solar on your roof for free. You sign a contract to buy the power from them at a rate cheaper than Meralco (e.g., ₱9/kWh vs ₱12/kWh).
Lease: You pay a fixed monthly "rent" for the panels.
Why do it: Zero CapEx. You keep your cash for inventory or expansion.
Why not: You save less money in the long run compared to owning the system. However, for many cash-strapped SMEs, this is the only way to get in. Read more about commercial solar cost options to weigh the pros and cons.
Conclusion
The money is there. Between BPI's Green Solutions, Security Bank's Solar Mortgage, and Pag-IBIG's mandates, access to capital is no longer the bottleneck.
The math is simple:
Calculate your monthly savings (e.g., ₱8,000/month).
Find a loan where the monthly amortization is close to that number.
Swap your bill. instead of paying Meralco forever, pay the bank for 5 years. Then pay nothing.
Don't let the upfront cost freeze you. Treat your roof like the asset it is, and let the bank pay for the upgrade. Your future self (and your wallet) will thank you.