People in the Philippines are increasingly installing rooftop solar panels to cut soaring electricity bills, making the country the world’s biggest spender of solar panels since the conflict in Iran began.
Power distributor Meralco has raised electricity rates by about 10% since the Middle East conflict started in late February. The Philippines has the highest residential electricity prices in Southeast Asia and provides few power subsidies, making rooftop solar more attractive despite high upfront costs.
Adrian Sabatera, a 39-year-old software engineer, had considered installing solar panels for years but only recently decided to invest P570,000 ($9,300) in a rooftop system for the home he shares with three others.
“I wouldn’t be shocked if a third of the middle-class population eventually finds their way to this setup,” Sabatera said.
The surge in demand has driven imports of Chinese solar panels to $407 million in the three months through May, up 145% from a year earlier, according to Chinese trade data.
Demand is also rising for installers. Philergy German Solar said customer inquiries in the first five months of the year were more than two-and-a-half times higher than a year earlier.
Analysts at energy think tank Ember expect distributed rooftop solar capacity in the Philippines to nearly triple to 3,500 megawatts within two years as falling equipment costs and rising electricity prices shorten payback periods.
However, widespread adoption continues to face obstacles, including high upfront costs, supply bottlenecks and limited access to government-backed financing, which excludes private-sector workers. (ABS CBN)