Adrian Sabatera, a 39-year-old software engineer, recently spent 570,000 peso (9,300 USD) to install a solar power system on the roof of his Manila home, where he lives with three others. "I wouldn't be surprised if up to one-third of the middle class switches to this model (rooftop solar)," he said.

Philergy German Solar, a Manila-based solar installation company, reported that customer inquiries in the first five months of this year increased by over 2,5 times compared to the same period in 2025. At one point, the company received up to 3,000 consultation requests daily, according to operating partner Jochen Staudter. "Customers are making decisions much faster than before," he noted.

Top markets for Chinese solar panel consumption from 1/3 to 31/5. Graphic: Reuters

Trade data from China, the primary global supplier of solar panels, indicates that exports to the Philippines surged by 145% during the three-month period ending in May, reaching 407 million USD. This makes the Philippines the second-largest consumer market, following the Netherlands, which imports as a transit point. In May alone, even as China's total solar panel exports dropped by 13%, shipments to the Philippines still increased by one-third. This surge in rooftop solar installations is attributed to escalating electricity prices caused by the conflict in the Middle East.

The weakening peso has also contributed to higher electricity costs, as the Philippines relies on imported coal and gas for power generation. Meralco, the nation's largest electricity distributor, has raised electricity prices by approximately 10%. Currently, a household of three, consuming 200 kWh, pays nearly 2,900 peso (about 50 USD), which accounts for 12% of their monthly income for electricity bills.

Average electricity cost (peso) for households using 200 kWh per month in the Philippines. Graphic: Reuters

The Philippines is one of the few Southeast Asian nations that provides almost no electricity subsidies, resulting in the highest residential electricity prices in the region. Only Singapore has comparable prices, but its citizens' average purchasing power is nearly 13 times higher than that of Filipinos. "The demand for rooftop solar will continue to be driven by high electricity prices," predicted Jochen Staudter of Philergy German Solar. Adrian Sabatera himself had hesitated to install solar power for many years due to the high cost. However, the recent decrease in equipment prices coupled with continuous electricity price increases motivated him to invest.

Solar power currently accounts for under 4% of the total electricity consumed in the Philippines, according to government figures. Alnie Demoral, an analyst at the energy research organization Ember, forecasts that distributed solar power capacity in the Philippines could nearly triple in the next two years, reaching 3,500 MW. This capacity is equivalent to the entire current large-scale solar farm capacity in the country. The payback period is also shortening from four years to 3,1 years.

Manila entrepreneur Jason Porciuncula installed a 12 kW solar power system with battery storage in January. When electricity prices hit record highs in May, his monthly bill was only one-fifth of the 21,000 peso he paid last summer.

Workers install solar panels on the roof of a house in Kawit, Philippines on 26/6. Photo: Reuters

Installing rooftop solar in the Philippines is not without its challenges. According to Brenda Valerio, Director of New Energy Nexus in the Philippines, deployment progress is slower than demand due to component hoarding, fluctuating equipment prices, and inadequate quality control. The Philippine government offers solar installation loans of up to 500,000 peso (8,200 USD) at a 5% interest rate, which is below market rates. However, this program is not available to private sector employees.

Another barrier is the initial investment cost, which remains very high compared to the average annual household income of approximately 353,200 peso (about 5,800 USD). "The opportunity exists, but the upfront cost is still too significant for many households and businesses, despite the increasingly shorter payback period," stated Ember expert Demoral.

Phien An (according to Reuters)