SSS to roll out rooftop solar financing

From AB Capital's The Opening Bell: Three Moves

Event

The Social Security System (SSS) plans to launch an Energy Sustainability Loan by end-2026, earmarking P40 billion to finance residential rooftop solar installations. The program will initially target 100,000 households, offering loans of up to P400,000 over 4-7 years.

View

The program improves access to financing for residential rooftop solar, but we believe affordability will remain an important constraint as households still need to justify the economics of a sizeable investment. As such, our view is still that rooftop solar will remain a gradual and manageable headwind to distribution utility (DU) volume growth.

Catalyst

Key watchpoints include the final loan guidelines, take-up rates, and whether similar financing initiatives emerge from banks and utilities which could further accelerate residential solar adoption.

Action

We are constructive on names that are proactively positioning for rising rooftop solar adoption through installation, financing and bundled offerings. While we expect adoption to remain gradual, these initiatives should allow participants to capture incremental growth as the market develops.

Disclaimer: The information, analyses, and views contained herein is based on sources which we, AB Capital Securities, believe are reliable, but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or solicitation of an offer to sell or buy the securities herein mentioned. AB Capital Securities and its Directors and Officers and/or members of their families may have a position in the securities herein mentioned and may make purchases and/or sales of the securities from time to time in the open-market and otherwise.