For decades, the high upfront cost of solar power was the single biggest hurdle preventing mass adoption in the Philippines. While the dream of harnessing the sun to escape volatile electricity rates was appealing, the reality of a six-figure investment was simply out of reach for the vast majority of Filipino families and businesses. That era is decisively coming to an end.
As we move through 2025, the financial landscape for renewable energy is undergoing a profound transformation. Major commercial banks in the Philippines, once hesitant to fund residential solar projects, are now actively competing to help you put a power plant on your roof. The rise of dedicated "green loans" and "solar mortgages" has shattered the cost barrier, making solar power more accessible than ever.
This guide provides a comprehensive overview of the top banks in the Philippines that are leading the charge in solar financing. We will explore their specific loan products, interest rates, and requirements, empowering you to approach your solar investment not as an insurmountable expense, but as a manageable and intelligent financial decision.
The Green Financing Revolution: Why Banks Are All-In on Solar
The shift in the banking sector's attitude toward solar is not accidental. It's driven by a powerful confluence of economic reality and strategic foresight. Banks are witnessing the undeniable financial viability of solar, both at a massive utility scale and on a residential level.
In 2025 alone, consortiums of the country's largest banks—including BDO, BPI, Security Bank, Metrobank, PNB, and China Bank—have signed off on colossal financing deals, such as the ₱150 billion omnibus loan for the Terra Solar project in Central Luzon. These massive investments signal a deep confidence in the renewable energy sector. This confidence is now trickling down to the consumer level, creating a new generation of loan products specifically designed to fund your solar journey.
Bank of the Philippine Islands (BPI): The Solar Mortgage Innovator
BPI has established itself as a pioneer in residential solar financing with its innovative BPI Solar Mortgage program. Recognizing that a solar system is a home improvement that pays for itself, BPI has created several flexible pathways for homeowners to fund their investment.
How it Works:
Instead of a standard personal loan, the BPI Solar Mortgage cleverly leverages your existing assets to offer better terms and higher loan amounts.
- Top-Up Equity Loan: If you have an existing BPI housing loan, you can "top up" your loan to cover the cost of the solar installation. The solar loan can be consolidated with your existing housing loan into a single, manageable monthly payment. To be eligible, you need to have a paid-up amount of at least ₱400,000 on your existing home loan.
- Property Equity Loan: You can use your fully paid property as collateral to secure a loan specifically for acquiring solar panels.
- 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 a minimum loan amount of ₱200,000 and a maximum term of 5 years.
Key Features:
- Interest Rate: BPI, in partnership with fintech company Helios, launched the program with a competitive 7% interest rate with a 7-year fixing period.
- Loan Term: Terms can extend up to 20 years when consolidated with a housing loan, making the monthly amortization very low.
- Accredited Partners: BPI has an official partnership with solar marketplace provider Helios, which can help streamline the process of getting a quote and applying for the loan.
Security Bank: Aggressive Rates and a Commitment to Sustainability
Security Bank has emerged as another major player in the green financing space, launching its own comprehensive Solar Mortgage program and aggressively pursuing sustainable lending.
How it Works:
Security Bank's program is designed to integrate solar financing into every stage of homeownership.
- Property Acquisition: You can include the cost of a solar panel system in the loan amount when purchasing a new home.
- Construction or Renovation: You can bundle the solar system cost into your construction or renovation loan.
- Home Equity: Use the value of your existing property to get a loan for a solar installation. The minimum loan amount for new clients is ₱1,000,000.
- Top-Up Loan: Existing Security Bank home loan clients can add the cost of solar panels to their current mortgage with a minimum top-up amount of ₱300,000.
Key Features:
- Promotional Interest Rate: As of mid-2025, Security Bank is offering a highly competitive special rate of 6.80% per annum with a 5-year fixing period for its Solar Mortgage, available until July 31, 2025.
- Strong Partnerships: Like BPI, Security Bank has also partnered with Helios to facilitate solar mortgages. They have also inked agreements with major solar installers like Solenergy Systems Inc. to provide financing solutions for their business clients.
- Corporate Commitment: Security Bank has publicly stated its ambition to double its sustainable financing portfolio by the end of 2025, with a heavy focus on solar energy projects for both businesses and consumers.
BDO Unibank: The Flexible Financing Giant
While BDO has not marketed a specifically branded "Solar Loan" for consumers in the same way as BPI and Security Bank, as the country's largest bank, it remains a primary source of financing for solar projects of all sizes. For homeowners, this means leveraging BDO's established and flexible loan products.
How it Works:
Homeowners can finance their solar systems through BDO's existing loan facilities:
- BDO Home Loan: You can apply for a home loan for the purpose of home improvement or renovation, which explicitly includes the installation of solar panels. Basic requirements include a minimum gross family income of ₱50,000 per month.
- BDO Multipurpose Loan: This product is designed for various personal needs and can be used to fund a solar installation. Eligibility requires a stable source of income and a minimum gross monthly income of ₱50,000 for employed individuals.
The advantage of going through BDO, especially for existing clients, is the potential for a streamlined process by leveraging your established banking relationship.
Other Key Banks in the Solar Space
- Rizal Commercial Banking Corporation (RCBC): RCBC is a very active lender in the utility-scale solar sector, recently funding a ₱498 million loan for a major solar project in Nueva Ecija. While they do not have a prominent consumer-facing solar loan product, their deep involvement in the industry suggests that they are very open to financing such projects, particularly for business clients or high-net-worth individuals through their existing loan structures.
How to Choose the Right Solar Loan
With multiple banks now vying for your green business, it’s essential to compare their offerings systematically.
- Compare Rates and Fixing Periods: A lower interest rate is obviously better, but the fixing period is just as important. A longer fixing period (e.g., 5 or 7 years) protects you from interest rate fluctuations for a longer time.
- Check the Loan Term: A longer loan term (e.g., 15-20 years) will result in a much lower monthly payment, making it easier for your electricity savings to offset the amortization.
- Ask About All Fees: Inquire about processing fees, appraisal fees, and other charges that might not be included in the advertised rate.
- Prepare Your Documents: To apply, you will typically need a valid ID, proof of income (ITR, payslips, or financial statements), and, most importantly, a formal quotation from a reputable solar installer. This quotation is proof of the loan's purpose.
A crucial first step before even approaching a bank is to get several proposals and conduct a fair solar quote comparison. This ensures you are financing a system that offers the best value.
The Ultimate ROI: When Savings Pay for the Loan
The most powerful aspect of a solar loan is that it's an investment that pays for itself. The monthly savings you generate by reducing your electricity bill can often be equal to or even greater than your monthly loan payment. This makes your investment cash-flow positive from the very beginning. Understanding your potential solar ROI is essential. A proper solar assessment will project these savings accurately, showing you the incredible solar savings in 2025 and beyond.
For example, if your 5kW solar system saves you ₱8,000 per month on your electricity bill, and your monthly loan amortization over 15 years is only ₱7,500, you are essentially getting a solar system for free and pocketing an extra ₱500 a month. This is the financial magic that bank financing has unlocked.
Conclusion: The Cost Barrier Has Been Broken
The days of solar power being an unattainable dream for the average Filipino are over. The active and competitive participation of the country's top banks has effectively dismantled the upfront cost barrier, transforming a major capital expense into a manageable monthly investment.
With banks like BPI and Security Bank offering dedicated, low-interest solar mortgages, and giants like BDO providing flexible financing options, the path to energy independence has never been clearer or more accessible. The final step before this journey is to choose the right solar company to provide a quality system. By arming yourself with a professional solar quote and approaching these financial institutions, you can finally turn the tables on high electricity costs and make a wise, profitable investment in a brighter, more sustainable future.