Aside from 2.1 million active members, pensioners of the Government Service Insurance System (GSIS) can also apply for a loan of up to P500,000, payable over five years, to install solar panels at their homes, as the ongoing Middle East tensions threaten electricity cost surges.
GSIS president Wick Veloso announced Saturday that government retirees, estimated at around 650,000, are also eligible to avail of the program, subject to a 5-percent annual interest rate.
The amount, which varies depending on the borrower, is payable over five years, with amortizations made in 60 equal monthly installments, with no service fee.
“As we see that the price of power is directly impacted [by] the war in the Middle East, the GSIS immediately launched a program to offer solar loans to our members,” Veloso said partly in Filipino in a radio interview.
Launched in March, the Ginhawa Solar Energy Loan (GSEL) aims to lessen the country’s dependence on fossil fuels and ensure energy stability amid global oil shipment disruptions caused by the United States-Israel war on Iran, which has jacked up prices.
The war, erupted on 28 February, has heavily damaged energy firms in the Middle East and led to the closure of the Strait of Hormuz, through which about 20 percent of the world’s oil shipments transit. The Philippines has been greatly affected by the conflict, as it imports about 95-98 percent of its oil from the Middle East.
As part of the government’s effort to cushion the impact of the oil crisis, GSIS rolled out a loan program to encourage the use of solar panels as an alternative energy source, although the cost and installation remain expensive.
According to Veloso, potential borrowers may submit their supplier quotations online through the GSIS Touch mobile app, and they will be processed within 3 days. Veloso added that the GSIS has no accredited supplier, allowing borrowers to scout for a cheaper source.
The P500,000 maximum loan is equivalent to a 6-kilowatt solar system. Veloso projected that a three-bedroom household with basic appliances, such as three electric fans, a television, one refrigerator, and one air conditioner, has an estimated power demand of only half, or around 3 KW.
Monthly amortization for the maximum loan is estimated at around P10,400, and includes three years of free insurance.
The loan may be pre-terminated by paying the outstanding balance before the end of the loan term, without charging fees.
As of 21 April, solar loan applications had already reached P5.7 billion. The GSEL has a total budget of P12.5 billion, including P60 million allocated for insurance coverage.