Today, more and more Filipinos are transitioning to solar power as an affordable, reliable, and clean energy source that can dramatically reduce electricity bills while helping the environment.

Solar home systems eventually pay for themselves in the long run. However, most homeowners are deterred by the misconceptions that it’s ‘too expensive’ and tedious to install1.

But here’s the good news: investing in solar rooftops has never been easier or cheaper than it is today.

Solar Panel Costs and How Micro-Financing Makes Them Affordable

In fact, at least 95% of Filipinos are not aware of the already existing subsidies and financing options available for solar setups.

For a typical Filipino household, a basic solar system might range from ₱80,000 to ₱200,000, while larger systems for bigger homes or businesses can exceed ₱500,0002. These numbers might seem daunting, but financing options can make them surprisingly manageable.

[For a quick estimate, you can use this Philippines Solar Savings Calculator.]

Solar IS Affordable through Microfinancing

Microfinancing emerged as a game-changer for solar adoption, particularly for middle-income families. It is a simplified loan provided by banks or institutions designed to enable zero-upfront cost installation for ordinary households3.

How does it work?

The process is straightforward: after verifying your application, microlenders shoulder the upfront cost of installing your solar system and create flexible payment terms (usually monthly) that fit your budget. All while you immediately enjoy the benefits of your solar system.

Most of the available microfinancing options today offer a simplified application process with minimal documentation requirements.

Depending on the size of the loan, microlenders can offer a range of payment plans, ranging from 12 months to 5 years4 at 7.5% to 12% per annum, 5allowing you to choose terms that work best for your financial situation.

Financing Programs: Options, Options, Options!

If you already have a home loan or are applying for one, additional financing options are available. The PAG-IBIG Fund offers loans of up to ₱500,0006 specifically for solar panel installations, making it easier for existing homeowners to add solar power to their properties.

Beyond PAG-IBIG, several major banks7 like BPI8, offer specialized "renewable energy" loans9 with favorable terms, even for those without an existing home loan.

Solar Energy Pays for Itself

Still on the fence?

Here's a simple example: If your monthly electricity bill is ₱8,000 and a solar system can reduce it to ₱2,000, you're saving ₱6,000 monthly.

If your microfinancing payment is ₱4,500 per month, you're still ₱1,500 ahead each month while building ownership of a valuable asset.

After you finish paying off the loan, that ₱6,000 monthly savings becomes pure profit in your pocket for the remaining 2510+ years of your solar system's lifespan.

With microfinancing and other innovative funding solutions, clean energy is now within reach for most Filipino families.