EV, solar loans emerge as bright spots for banks

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May 3, 2026 | 12:00am

MANILA, Philippines — Electric vehicle and solar financing are emerging as unexpected growth drivers for major Philippine banks as elevated oil prices and geopolitical tensions push households and businesses to seek cheaper and cleaner energy alternatives.

BDO Unibank Inc. and Bank of the Philippine Islands (BPI) executives suggest that while traditional sectors remain cautious amid global uncertainty, demand for energy-transition related lending is gaining traction.

The trend comes as the Philippines, a net energy importer, remains exposed to spikes in fuel costs stemming from Middle East tensions, which have pressured consumers, transport costs and power prices.

Asked about consumer appetite for EV and solar-related loans during a recent media briefing, BDO president and CEO Nestor Tan said: “Yes, we’ve seen an uptick in EV loans and solar panels, but not yet material.”

The comment suggests green consumer lending is rising from a low base, even as institutional-scale renewable energy financing already forms a meaningful part of the bank’s broader sustainability push.

Based on its 2025 Sustainability Report, BDO’s cumulative sustainable finance portfolio reached P1.21 trillion in 2025, one of the largest of its kind among Philippine banks as the lender expanded funding for renewable energy, green buildings and other eligible projects.

BDO also arranged the P150-billion MTerra Solar Project last year, the world’s largest integrated solar and battery storage facility projected to supply clean energy to 2.4 million households.

The Sy-led bank also raised P115 billion from its fourth ASEAN Sustainability Bond last year, marking the highest sustainability-related issuance by a Philippine bank as of 2025.

BDO said it has an internal target to annually increase renewable energy financing under its Sustainable Finance Program. It also aims to reduce its coal exposure by 50 percent by 2033, while ensuring that coal exposure in its total loan portfolio does not exceed two percent.

Meanwhile, BPI head of consumer banking Maria Cristina “Ginbee” Go said the same external shock hurting sentiment elsewhere has also created pockets of demand.

“There are still opportunities that the crisis presents. For example, in this case, we’ve seen demand for new energy vehicles,” Go said. “And the demand for EVs now is so high. In fact, that’s what is propping our auto loan book.”

Go said BPI’s EV loan portfolio has reached P12 billion, with Chinese automaker BYD accounting for roughly half of EV financing.

She added that strong partnerships with dealers and original equipment manufacturers have helped build a robust pipeline.

BPI executives also pointed to growing demand for residential solar systems as consumers try to reduce dependence on the power grid.

“In 2025, we’ve seen a growth of 89 percent in our solar financing. And that’s about P100 million worth of outstanding balances in solar financing,” Go said.

BPI chief finance officer and chief sustainability officer Eric Luchangco said solar is likely to remain a major lending growth area within the broader energy sector.

“If you look at renewable energy generation here in the Philippines, it has traditionally focused mostly on solar. And we continue to expect growth in this area,” Luchangco said.

“So when you say core, it doesn’t necessarily mean that it’s going to dominate our lending. But I certainly expect it to continue to be a large source of growth for lending into the energy sector moving forward.”

For now, bankers indicate the shift toward EV and solar lending is still emerging rather than transformational. But if fuel and electricity costs remain volatile, financing tied to energy savings could become a larger slice of retail loan growth.

That may offer lenders a rare bright spot in an environment where higher uncertainty is causing many borrowers to delay major spending decisions.