Manila: The Government Service Insurance System (GSIS) is preparing to introduce the Ginhawa Solar Energy Loan (GSEL), a new financing initiative designed to assist government employees in borrowing up to PHP500,000 for the installation of solar panel systems in their residences.
According to Philippines News Agency, this program aligns with the national government's efforts to promote energy conservation, a move influenced by escalating global oil prices due to Middle East tensions, which in turn affect electricity costs. The state pension fund highlighted this in a recent news release.
GSEL represents a green loan initiative aimed at encouraging the use of renewable energy. It is formulated to help government employees not only reduce their carbon footprint but also decrease their household electricity expenses. The loans under this program will come with a 5 percent annual interest rate, to be repaid over five years in 60 equal monthly installments, and will not include a service fee. For a PHP500,000 loan, the monthly repayment will amount to PHP10,416.67.
In addition, solar panel systems funded through this program will receive a three-year insurance coverage against fire, earthquake, lightning, and typhoon, at no extra cost for borrowers. This coverage will be activated once the GSIS member informs the agency and provides proof of completed installation.
The GSIS Board of Trustees has sanctioned a budget of PHP12.5 billion for the loan program and allocated PHP60 million to cover insurance costs for solar panel setups. Loan applications will be processed through the GSIS Touch mobile app, which allows members to upload necessary documents such as supplier quotations, installation contracts, or receipts for reimbursement.
Moreover, members who opt for solar panel installations may benefit from the government's net metering system. This system enables households to sell surplus electricity back to the grid, further cutting down on energy expenses.
Wick Veloso, President and General Manager of GSIS, emphasized that the program offers a practical solution for members to manage the increasing electricity rates. Veloso stated, "This loan allows our members to invest in solar energy for their homes and generate substantial savings on their electricity bills while paying it back over five years at a competitive interest rate."
The GSEL is scheduled to run for an initial period of three years, after which GSIS will assess its effectiveness to decide on any potential extensions. Eligible borrowers are active GSIS members with at least three years of government service, holding permanent, regular, or non-career status. Further details about the program will be disclosed soon.