Rising electricity prices are pushing more Filipinos to install rooftop solar systems, driving the Philippines to become the world’s biggest spender on solar panels since the Middle East conflict began in late February, Reuters reported.
Chinese trade data showed the Philippines imported US$407 million, or about ₱24.94 billion, worth of solar panels in the three months through May, up 145 percent from the same period last year. The increase reflects growing demand from households turning to rooftop solar as electricity costs continue to rise.
A median household consuming around 200 kilowatt-hours each month now spends about 12 percent of its monthly income on electricity. Meralco has raised power rates by 10 percent since the conflict began, while the Philippines has the highest residential electricity prices in Southeast Asia and is one of the few countries in the region with limited power subsidies.
Software engineer Adrian Sabatera recently spent ₱570,000 on a rooftop solar system for the Manila home he shares with three others after years of considering the investment. “I wouldn’t be shocked if a third of the middle-class population eventually finds their way to this setup,” he said.
The growing demand is also being felt by solar installers. Manila-based Philergy German Solar said customer inquiries during the first five months of the year were more than two and a half times higher than a year earlier, reaching as many as 3,000 inquiries in a single day. Managing partner Jochen Staudter said customers are deciding to buy “much faster than before.” He added, “Demand will continue to be driven by high electricity prices.”
Reuters reported that distributed solar capacity could nearly triple to 3,500 megawatts within two years as loan payback periods shrink from four years to 3.1 years. The report also identified several challenges, including high upfront installation costs, equipment shortages, volatile component prices, quality concerns, and government solar loan programs that exclude private-sector workers.
