Across the Philippines, a quiet revolution is taking place on rooftops. Homes, malls and offices are increasingly adorned with solar panels, marking not just a trend, but a crucial step towards securing the nation’s energy future, driving economic development and embracing clean energy.
Solar rooftop installations are at the forefront of the Philippines’ journey toward sustainability.
“Solar energy is undeniably the cheapest source of electricity today,” said Tetchi Capellan, chairperson of the Philippine Solar and Storage Energy Alliance (PSSEA).
“Rooftop solar empowers homeowners and offers families a choice, as well as a way forward to address the rising cost of electricity in a quick and affordable manner,” she said.
Capellan said rooftop solar allows millions of homes and small businesses to actively participate in the global decarbonization effort.
Beyond cost savings, PSSEA highlights that solar rooftops increase home values and can even provide an additional revenue stream by selling excess energy back to the grid.
Cost of going solar
PSSEA’s latest market report on rooftop solar in the Philippines provides a detailed breakdown of installation costs, which can range from P150,000 to P1 million, depending on factors like house type, roof structure, and system size.
For small, affordable homes with a monthly electricity consumption of 224 kilowatt-hours, a 2 kilowatt-peak (kWp) system, requiring five solar panels on aboui 12 square meters, would cost between P150,000 and P210,000.
Medium-cost houses, consuming around 448 kWh monthly, might need a 4-kWp system (10 panels, 17 sq.m.) costing between P300,000 and P420,000.
Larger, high-cost residences could require a 15-kWp system (38 panels, 86 sq. m.) ranging from P900,000 to P1.26 million, or even a 30-kWp system (75 panels) costing around P1.8 million.
Deciphering costs
PSSEA listed several factors influencing installation costs. System size is paramount; optimizing the system to match a household’s energy needs yields the greatest savings.
Roofing material also plays a role. Trapezoidal metal roofs are the most straightforward for solar installations, while corrugated metal roofs present more complexities and higher costs.
Solar module prices vary depending on technology and brand. Monocrystalline panels are preferred for residential installations due to their higher efficiency and smaller footprint.
Popular brands in the Philippines, recognized for quality and reliability, include Trina, Hanhwa, JA Solar, and REC—all considered Tier 1 by Bloomberg New Energy Finance.
System type (grid-tied or hybrid) also affects cost. Grid-tied systems, connected to the grid without batteries, are less expensive than hybrid systems, which incorporate battery storage.
PSSEA identifies the “most prohibitive cost” as REC Meter Compliance. This involves the consumer paying for the AC wiring from the inverters to the distribution utility’s (DU) service entrance, along with a required breaker. PSSEA argues that while the REC meter quantifies Renewable Energy Credits benefiting the DU, the cost burden falls on the customer.
Return on investment
PSSEA illustrates the return on investment with an example of a 1.6-kWp grid-tied system for a household with a P12,000 monthly electricity bill. Assuming a 25-year lifespan for the solar panels with a 0.7 percent annual degradation factor, 70 percent solar energy consumption, and 30 percent export to the grid, the potential savings are significant.
With the DU’s rate at P12.0575 per kWh and a generation rate of P6.5332 per kWh (growing 3 percent annually), and considering module efficiency, operating costs, and installation costs, PSSEA estimates a break-even point in the fifth year. Total savings could reach P553,904, with total avoided costs of P628,341 and export credits of P145,911.
PSSEA said these figures are just examples and could vary based on location, system size, energy consumption and solar panel quality. However, the overall message is clear: solar rooftops offer a compelling pathway to a more sustainable and economically sound energy future for the Philippines.