Philippines expands solar financing options to combat rising electricity costs
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Filipinos are increasingly turning to rooftop solar installations to hedge against rising electricity prices and frequent power outages in the Philippines.
While the International Energy Agency reports that solar has provided the world's cheapest electricity since 2020, the initial cost of equipment remains a barrier for many households. A basic solar system for a typical Filipino home can cost between P80,000 and P200,000, while larger systems can exceed P500,000.
Mona Dimalanta of the Institute for Climate and Sustainable Cities notes that while households previously needed significant cash upfront, various financing options now exist. Government employees can access loans through the Government Service Insurance System, while Pag-IBIG offers home improvement loans for solar setups. The Social Security System plans to offer loans to private employees by early 2027. Some solar installers also provide in-house financing or lease-to-own arrangements for those who cannot provide collateral to traditional banks.
Philline Donggay of the Mindanao Goes Solar movement points out that financing remains limited in provinces outside the Greater Manila Area. She also notes that off-grid areas cannot access net-metering, a program where consumers sell excess power for bill credits. To improve accessibility, Dimalanta and Donggay suggest community solar projects and pre-installing solar panels in government housing projects to ensure that lower-income residents can also benefit from renewable energy.
