Social Security System (SSS) is earmarking ₱40 billion to finance a planned solar panel loan program that could benefit around 100,000 households.

SSS President and Chief Executive Officer (CEO) Robert Joseph De Claro told reporters in a recent interview that the state-run pension fund is crafting a program under the country’s energy sustainability laws, particularly focusing on solar energy.

De Claro said the loan facility is designed to make renewable energy (RE) accessible to a significant portion of the pension fund’s membership. “We’re looking at a maximum of ₱300,000 to ₱400,000, payable in four to seven years,” he said.

SSS is currently finalizing the operational guidelines for the program, which will draw from a substantial pool of resources. “We’re looking at earmarking about ₱40 billion worth of SSS funds,” De Claro said.

On borrowing costs, the CEO clarified that the interest rates would be competitive but would strictly comply with statutory requirements.

“It will definitely be slightly above the treasury bill [benchmark T-bill] rate. By law, all SSS loans cannot have zero interest,” De Claro explained, noting the legal requirement for a minimum return on the fund’s investments.

SSS aims to make a formal announcement soon, with a rollout expected by the end of 2026. “Personally, I’m targeting September for the announcement. Implementation could happen by the end of this year or early next year,” the CEO said.

This initiative is part of a push to modernize benefits and attract a younger demographic to the system. “What we’re focused on is providing the best benefit our members can get, so that young [professionals] will be attracted,” he said.

This sustainable energy initiative comes as the SSS manages other costs, including an accelerated pension increase. SSS rolled out the pension increase three months earlier than the original schedule, totaling ₱6.5 billion.

De Claro said future pension increases will remain dependent on the performance of the fund.