Comparing Interest Rates and Terms for Solar Loans from Philippine Banks

The financial landscape for solar energy in the Philippines has undergone a dramatic transformation in recent years. What was once a prohibitively expensive investment requiring substantial upfront capital has become an accessible and intelligent financial decision for millions of Filipino homeowners and businesses. This shift is largely due to the aggressive entry of major Philippine banks into the green financing space, each competing to offer the most attractive terms for solar installations.

As we navigate through 2025, the variety of solar financing options available can be both exciting and overwhelming. Different banks offer different interest rates, loan terms, and qualification requirements. Understanding these differences is crucial to securing the best possible financing for your solar project. This comprehensive guide will break down the current offerings from the Philippines' leading financial institutions, helping you make an informed decision that aligns with your financial goals and solar ambitions.

Security Bank: Leading the Charge with Aggressive Rates

Security Bank has positioned itself as one of the most competitive players in the solar financing market with its comprehensive Solar Mortgage program. The bank has demonstrated a strong commitment to sustainable financing, publicly stating its goal to double its green lending portfolio by the end of 2025.

Interest Rates and Terms:
Security Bank's most compelling offering is its promotional 6.80% per annum interest rate with a 5-year fixing period. This special rate is available until July 31, 2025, making it one of the most attractive solar financing options currently available in the market. The bank offers flexible payment terms of up to 25 years, which significantly reduces the monthly amortization and makes the loan more manageable for homeowners.

Loan Structure Options:

• Property Acquisition + Solar: You can include the cost of solar panels when purchasing a new home.
• Construction/Renovation + Solar: Bundle solar installation costs with your construction or renovation loan.
• Home Equity for Solar: Use your existing property's value to secure a loan specifically for solar installation, with a minimum loan amount of ₱1,000,000 for new clients.
• Top-Up Loan: Existing Security Bank home loan clients can add solar costs to their current mortgage with a minimum top-up amount of ₱300,000.

Key Requirements:

• Minimum joint gross monthly income of ₱50,000
• Standard Security Bank home loan requirements
• Formal quotation from an accredited solar provider
• Loan amount up to 90% of appraised property value

The bank has also established partnerships with solar marketplace provider Helios and major installers like Solenergy Systems Inc., streamlining the process for borrowers. Understanding how to conduct a fair solar quote comparison is essential before approaching any bank, as the quality of your solar proposal directly impacts your loan approval.

Bank of the Philippine Islands (BPI): The Innovation Pioneer

BPI has earned recognition as a pioneer in residential solar financing through its innovative BPI Solar Mortgage program, developed in partnership with fintech company Helios. This collaboration has created what is touted as Asia's first integrated solar mortgage solution.

Interest Rates and Terms:
BPI offers a 7% interest rate with a 7-year fixing period, along with up to ₱70,000 in waived fees. While the interest rate is slightly higher than Security Bank's promotional offering, BPI's program provides unique flexibility in how the loan can be structured and secured.

Unique Loan Structure Options:

• 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, extending terms up to 20 years.
• Property Equity Loan: Use your fully paid property as collateral for 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 a minimum amount of ₱200,000 and maximum term of 5 years.

Loan Range:
BPI's solar mortgage accommodates a wide range of projects, from as low as ₱400,000 to over ₱10 million, making it suitable for everything from modest residential installations to large-scale commercial projects.

The partnership with Helios has already onboarded over 100 homeowners since its launch in Q4 2023, demonstrating the program's early success and market acceptance.

BDO Unibank: Flexible Financing Through Established Products

As the Philippines' largest bank, BDO takes a different approach to solar financing. Rather than creating a specifically branded solar loan product, BDO leverages its established and flexible loan facilities to accommodate solar projects.

Available Options:

• BDO Home Loan: Can be used for home improvement or renovation purposes, explicitly including solar panel installation. The minimum gross family income requirement is ₱50,000 per month.
• BDO Multipurpose Loan: Designed for various personal needs, including solar installations. Requires a minimum gross monthly income of ₱50,000 for employed individuals.

Advantages:
The primary advantage of working with BDO is the potential for a streamlined process if you're already an existing client. The bank's vast network and established relationships can facilitate faster processing and approval. However, specific interest rates and terms for solar projects would need to be discussed directly with the bank, as they may vary based on the specific loan product and individual qualifications.

Other Notable Players in the Market

Rizal Commercial Banking Corporation (RCBC):
While RCBC doesn't have a prominent consumer-facing solar loan product, the bank is very active in utility-scale solar financing. They recently funded a ₱498 million loan for a major solar project in Nueva Ecija, indicating their strong commitment to the renewable energy sector. For business clients or high-net-worth individuals, RCBC may offer customized solar financing solutions through their existing commercial loan structures.

Making the Right Choice: Key Factors to Consider

When comparing solar loan options, the interest rate is just one piece of the puzzle. Here are the critical factors to evaluate:

1. Total Cost of Borrowing
Look beyond the headline interest rate to understand the total cost. Consider:

• Processing fees and other charges
• The length of the fixing period (longer is generally better for rate stability)
• Early payment penalties or prepayment options

2. Loan Term Flexibility
A longer loan term reduces your monthly payment, making it easier for your solar savings to offset the loan cost. However, you'll pay more interest over the life of the loan. The key is finding the right balance for your cash flow needs.

3. Qualification Requirements
Different banks have different income requirements and documentation needs. Ensure you meet the qualifications before investing time in the application process.

4. Partnership Benefits
Banks with established partnerships with solar installers or marketplaces may offer additional benefits, such as:

• Streamlined application processes
• Pre-negotiated rates with installers
• Quality assurance on solar providers

Understanding your potential solar ROI is crucial before committing to any financing option, as this will help you determine the optimal loan structure for your situation.

The Application Process: What to Expect

Regardless of which bank you choose, the application process will typically involve:

1. Pre-qualification: Initial assessment of your financial capacity and loan eligibility.
2. Documentation: Submission of required documents, including income proof, property documents, and most importantly, a formal solar quotation from a reputable installer.
3. Property Appraisal: For secured loans, the bank will assess your property's value.
4. Approval and Terms: Final loan approval with specific terms and conditions.
5. Disbursement: Funds are typically released directly to your chosen solar installer in tranches tied to project milestones.

Before beginning this process, it's essential to have completed a thorough solar assessment and obtained professional quotes from multiple installers.

The Financial Reality: When Solar Pays for Itself

The most compelling aspect of solar financing is that it often creates a cash-flow positive situation from day one. With the right loan structure, your monthly electricity savings can equal or exceed your loan payment. For example, if your solar system saves you ₱8,000 per month on electricity and your loan payment is ₱7,500, you're essentially getting solar for free while pocketing an extra ₱500 monthly.

This financial dynamic is what makes solar financing so attractive and explains why banks are competing aggressively for this market. The solar savings in 2025 are more compelling than ever, making it an ideal time to explore financing options.

Conclusion: A Competitive Landscape Working in Your Favor

The competition among Philippine banks for solar financing business has created an unprecedented opportunity for consumers. With promotional rates as low as 6.80% and flexible terms extending up to 25 years, the financial barriers to solar adoption have been dramatically reduced.

Security Bank currently offers the most aggressive promotional rate, while BPI provides unique flexibility in loan structuring. BDO offers the advantage of an established relationship for existing clients. The key is to carefully evaluate your specific situation, compare the total cost of borrowing, and ensure you're working with a reputable solar installer.

The final step in this process is to choose the right solar company to execute your project. A quality installer will not only provide an excellent system but can also help facilitate the financing process, ensuring your journey to energy independence is as smooth as possible.

With the right combination of competitive financing and professional installation, solar power has never been more accessible to Filipino families and businesses. The question is no longer whether you can afford to go solar, but whether you can afford not to.