Soaring Power Bills Fuel Rooftop Solar Boom in the Philippines

Rising electricity prices are driving a surge in rooftop solar installations across the Philippines, with households and businesses turning to renewable energy to reduce soaring power bills amid higher global energy costs linked to the conflict in the Middle East.

The Philippines has become the world’s largest importer of solar panels since the outbreak of the Iran conflict in late February, as consumers seek long-term savings in one of Southeast Asia’s most expensive electricity markets.

Electricity distributor Meralco has increased power rates by about 10 percent since the conflict began, adding pressure on household budgets. A typical household consuming around 200 kilowatt-hours of electricity each month now spends roughly 12 percent of its monthly income on electricity.

Unlike many of its regional neighbours, the Philippines offers limited electricity subsidies, leaving consumers to absorb rising energy costs. While Singapore has similarly high electricity prices, its residents enjoy significantly greater purchasing power.

The sharp increase in demand has translated into record solar panel imports. Trade data from China, the world’s largest solar panel producer, showed the Philippines imported $407 million worth of solar panels during the three months through May, a 145 percent increase from the same period last year.

Even after China reduced export tax rebates, causing its overall panel shipments to decline in May, exports to the Philippines continued to rise by nearly one-third.

For many homeowners, declining equipment prices have made solar systems more attractive despite substantial upfront costs.

Adrian Sabatera, a 39-year-old software engineer in Manila, recently invested 570,000 pesos, or about $9,300, in a rooftop solar system for the home he shares with three other people. He said he had considered solar power for years but delayed the purchase because of the cost.

With electricity prices continuing to climb, he believes many middle-class households will eventually make the same decision.

Solar installation companies are also reporting a sharp increase in customer interest.

Philergy German Solar said inquiries during the first five months of the year were more than two-and-a-half times higher than during the same period in 2025. Managing partner Jochen Staudter said the company was receiving up to 3,000 inquiries a day at one stage, with customers making purchasing decisions much faster than in previous years.

Energy think tank Ember estimates the country’s distributed rooftop solar capacity could nearly triple to 3,500 megawatts within two years, matching the size of the Philippines’ current utility-scale solar sector. Improved economics have reduced estimated loan repayment periods from four years to about 3.1 years.

Despite the rapid growth, solar power still accounts for less than 4 percent of the country’s electricity consumption.

Industry experts warn that challenges remain. Installation companies are struggling to keep pace with demand due to shortages of components, fluctuating equipment prices and inconsistent quality standards.

High installation costs also continue to limit wider adoption. A typical residential system often costs more than the country’s average annual household income of 353,200 pesos.

Although the Philippine government offers solar loans of up to 500,000 pesos at below-market interest rates, the program excludes private-sector employees, limiting access for many potential buyers.

Analysts say strong demand is expected to continue as households search for ways to shield themselves from rising electricity costs, even as affordability remains a major obstacle for many consumers.