Energy cost pressures
The Ginhawa Solar Energy Loan (GSEL) aims to help government workers manage rising electricity costs while supporting the national government’s push for energy conservation and renewable energy adoption.
Global oil prices have recently faced upward pressure amid tensions in the Middle East, raising concerns about higher electricity prices in energy-importing countries like the Philippines.
By encouraging solar power adoption at the household level, GSIS hopes the program will help reduce dependence on traditional energy sources while lowering electricity expenses for members.
Loan program details
Under the GSEL, qualified GSIS members may borrow up to P500,000 at an annual interest rate of 5 percent, payable over five years through 60 equal monthly installments.
The loan carries no service fee, the GSIS said in a statement.
A borrower who avails of the maximum amount will pay a monthly amortization of P10,416.67, according to GSIS.
The GSIS Board of Trustees has approved P12.5 billion to fund the loan program, along with P60 million to provide insurance coverage for solar panel installations financed under the initiative.
Built-in protection
Solar panel systems financed through the program will automatically receive three years of insurance coverage at no additional cost to borrowers.
The insurance protects installations against fire, earthquake, lightning, and typhoons.
Coverage will begin once the member notifies GSIS that the system has been installed and submits the necessary proof of completion.
Digital application process
Loan applications will be processed entirely through the GSIS Touch mobile application.
Members can upload supplier quotations, installation contracts, or official receipts through the app for loan approval or reimbursement.
The digital process aims to simplify application requirements and speed up processing for borrowers.
Additional savings potential
Members who install solar panels may also benefit from the government’s net metering program, which allows households to sell excess electricity generated by their solar systems back to the power grid.
This arrangement can further reduce electricity expenses for participating households.
GSIS President and General Manager Wick Veloso said the program provides members with a practical way to cope with rising power costs.
“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,” Veloso said.
Three-year rollout
The GSEL will initially run for three years, after which GSIS will evaluate its performance and determine whether the program should be extended.
Qualified borrowers include active GSIS members with permanent, regular, or non-career status who have been in government service for at least three years. —Ed: Corrie S. Narisma
