With rising electricity costs, periodical outages, and increasing government support for renewable energy, solar home systems are fast becoming a popular investment in Filipino households.

If you're considering solar but are worried about the upfront costs, microfinancing1 a solar loan could be your gateway to clean, affordable energy.

Understanding Your Financing Options

Microfinance institutions offer loans with flexible requirements and faster approval processes than traditional banks. These are ideal for residential or even small business installations covering 3-92kW systems.

This way, you start enjoying lower electricity bills from day one as you pay off your solar investment with predictable monthly payments over 1-5 years. Most of these loans also don't require additional collateral since the solar system itself secures the debt3.

Alternatively, traditional banks like BPI4 and Security Bank and government program Pag-IBIG Fund also offer financing for solar installations tied to existing home loans (also known as solar mortgages).

Step-by-Step Application Process


1. Assess Your Solar Needs and Their Costs

There are cascading factors that affect how much solar costs in the Philippines. The total cost of your rooftop solar installation will depend on5:

  • Your home's energy consumption
  • The size of the system
  • The type of solar panels and equipment
  • Installation complexity (grid tie, hybrid, or off grid6)
  • Your location

A typical Filipino household requires a 3-7kW system, costing P150,000-P250,0007 installed8. You can also use this handy Philippine Solar Savings Calculator to get a quick estimate.9


2. Choose Your Installation and Financing Partners

Compare solar microfinancing options using our directory. Research solar company financing partnerships for additional options 10.

Microlenders also come in different forms -- from banks and cooperatives to social enterprise and solar installer companies themselves 11.

Some microfinanciers also include assessment and installation packages. Alternatively, you can choose your own installation partners then finance it through microfinanciers.


3. Prepare Required Documents 12

Primary Requirements:
  • Valid Government ID
  • Proof of Income (Certificate of Employment, ITR, Business Permit)
  • Proof of Residence (Utility bills, Barangay Certificate)
  • Bank Statements (3-6 months)
Additional Documents:
  • Marriage Certificate (if applicable)
  • Solar System Quotation from certified installer13
  • Business Registration (for self-employed)

4. Submit Your Application

Complete the application form and submit all documents. You can usually find the form on the lender's website or get it from their customer service representative.

Many microfinanciers now offer online applications for faster processing. These institutions typically process applications within 1-2 weeks14, faster than traditional banks.

Eligibility Criteria
  • Filipino citizen or permanent resident
  • Age 21-65 years old
  • Stable household income (employment or business ownership)
  • Own or have legal right to install solar panels on property

The exact criteria may vary slightly depending on the solar microfinancing provider of your choice.

Tips for Success
  1. Choose accredited solar installers with good track records. Get multiple quotations and ensure warranty coverage.
  2. Keep all documents current and organized. Have both originals and photocopies ready.
  3. Consider joining financial literacy webinars or consultations offered by solar suppliers and/or microfinancing institutions.
  4. Maintain healthy savings, pay off existing debts, and establish a relationship with your chosen financial institution.

Solar energy adoption in the Philippines is accelerating with government incentives and improving technology. A typical solar installation pays for itself within 5-7 years through electricity savings, making it a smart financial investment.

With our featured directory of microfinancing solar providers and the right planning, your journey to a solar-powered home can begin today.

Browse our featured directory to find the best microfinancing options for your solar project.