In the Philippines, soaring utility bills are accelerating the installation of rooftop solar panels

Faced with the highest electricity prices in Southeast Asia and frequent power outages, a growing number of Filipino households and businesses are installing solar panels. According to Ember, installed rooftop solar capacity has almost doubled in a year, but the initial cost of equipment and slow connection times are still hindering widespread adoption.

On the roof of his house, located two hours south of Manila, Edwin Salas is having his first solar panels installed. The 46-year-old hopes to reduce his electricity bill while maintaining a power supply during outages.

"Even if we don't manage to bring the bill down to zero, we can save a lot and have electricity even during power cuts," explains Edwin Salas.

His choice illustrates the rapid growth of rooftop solar power in the Philippines. According to the Philippine Department of Energy, the country has the highest electricity prices in Southeast Asia. The drop in the price of photovoltaic modules now makes self-consumption more attractive for both individuals and businesses.

Rooftop solar power in the Philippines

35% renewable energy targeted for national electricity production by 2030

Rooftop solar capacity has almost doubled in one year, according to Ember estimates.

3,1-year return on investment estimated in May 2026 for a residential installation according to Ember

Between $3.000 and $5.000 to equip a typical household

Up to eight months of waiting for some connection procedures that are theoretically scheduled to take ten days

Solar power is becoming a solution to rising energy bills.

The Philippine government has set a goal of increasing the share of renewable energy to 35% of the country's electricity production by 2030, and then to 50% by 2040. In this context, rooftop photovoltaics are experiencing particularly rapid growth.

“For years, rooftop solar was often presented as an environmental choice (…) Today, it is a concrete response to financial pressure,” explains Brenda Valerio, national director of the NGO New Energy Nexus.

The think tank Ember estimates that the photovoltaic capacity installed on Philippine rooftops has almost doubled in the space of a year. It reached approximately 721 MW at the beginning of 2025, in a country of 116 million inhabitants.

According to another analysis by Ember, the payback period for a residential installation would have decreased from four years in May 2025 to approximately 3,1 years in May 2026, due to the combined effect of rising electricity tariffs and falling panel prices.

Chinese imports are increasing sharply

In the first few months of 2026, the Philippines became the second-largest buyer of Chinese solar panels, according to Ember. However, the volume of imported modules still far exceeds the number of installations actually connected to the grid, suggesting continued market growth.

Between January and May 2026, China exported $13,96 billion worth of photovoltaic cells and panels, compared to $11,07 billion during the same period in 2025, representing a 26% increase according to Chinese customs data reviewed by AFP. A significant portion of this growth came from Southeast Asian markets.

The rise in energy prices caused by the conflict in the Middle East has also accelerated orders. Mike de Guzman, managing director of the installer Solaric, says he sold out of five months' worth of stock in just a few weeks. His company is still receiving about 60 calls a day.

"It's as if a war has broken out and we're a bullet factory," says Mike de Guzman, CEO of Solaric.

A largely untapped potential

According to the Institute for Climate and Sustainable Cities, only 0,5% of available roof space in the Philippines is currently equipped for photovoltaic installations. The potential for development therefore remains considerable, both for residential and commercial and industrial buildings.

Large retail outlets are already among the main users. The SM Group reports having installed more than 200.000 panels on 59 shopping centers, representing 65 hectares of rooftops and a total capacity of 106 MWp.

"We install solar panels on our shopping centers solely to reduce our energy consumption," says Frederic DyBuncio, President and CEO of SM Investments Corporation.

According to the company, these installations cover more than 50% of its electricity needs. The Robinsons group, for its part, reports having 28 shopping centers powered by solar energy, while Ayala has equipped the rooftops of 13 sites.

"The price of solar panels continues to fall," stressed Frederic DyBuncio, president and CEO of SM Investments Corporation, hoping that the country would "take advantage of it . "

An investment still inaccessible to many households

Despite the drop in panel prices, a suitable installation for a typical household still costs between $3.000 and $5.000, according to Brenda Valerio. This amount remains difficult for a middle-class family to finance without a loan or other assistance program.

The government is offering a financing program for civil servants, but solutions accessible to other households remain limited. The development of tailored loans therefore appears to be one of the necessary conditions for a wider adoption of residential solar energy.

Connections can take up to eight months

Administrative procedures are the other main obstacle. While installing a bidirectional meter and connecting to the grid can theoretically be done in ten days, the process can take up to eight months in some regions, according to New Energy Nexus.

"The problem with solar roofs is the red tape," said Sherwin Gatchalian, president of the Philippine Senate, calling for simplified and expedited permits.

The Ministry of Energy has adopted a national framework aimed at developing rooftop photovoltaic installations and facilitating self-consumption on residential, commercial, industrial, and public buildings. However, its implementation remains dependent on the procedures put in place by local authorities and electricity network operators.