Why Solar Makes Sense in the Philippines

May 7, 2025

The cost of producing and distributing energy continues to rise. At the same time, climate change continues to threaten our access to stable and reliable power. All the while, at least 1.29 million homes in the Philippines remain off the grid or have difficulty staying regularly connected.

The answer has always been clear: we must begin decentralizing energy—bringing power generation closer to the people and away from finite, carbon-heavy sources and unreliable energy distribution systems.

For a country with over 7,000 islands with steady economic progress (and the second fastest in ASEAN in 2024), access to stable, reliable, and affordable energy isn’t just a dream—it’s within reach. 

To our advantage, we don’t need to look too far where to start.

Only up.

A step towards decentralization

In response to a changing world, the use of solar photovoltaic (solar PV) technology to generate electricity has seen rapid growth as a clean, practical source of electricity. Its ability to harness energy from the sun has proven to be a viable way to diversify energy sources with a record-high growth in solar PV generation by 32.2% in 2023. By 2024, solar continued to observe growth, adding 451.9 GW to the renewable energy mix.

And it won't stop there.

The International Energy Forum predicts solar's scalability and adaptability have fueled its global adoption. True enough, solar energy has gone through years of substantial breakthroughs, making solar PV production costs cheaper by 90% in the last decade— all while improving solar's efficiency and capability to power homes and businesses.

By the end of the decade, IEA projects solar PV to be the biggest source of renewable energy. We have an opportunity as golden as the sun to boost the projected global rise of solar energy. With it, find an energy solution that maximizes the country's geographical advantage, not seeing it as a disadvantage.

An abundance of sun and possibilities

The Philippines boasts a high capacity to harness the sun as an energy source in a tropical country situated near the equator that receives up to 5.5kWh/m² of solar irradiation. In comparison with other countries that have made major strides in solar adoption, our photovoltaic power potential lives up to, or exceeds, the ones by key players in solar deployment:

  • Germany averages 2.5 to 3.5 kWh/m²/day
  • The United States receives between 3.0 to 6.0 kWh/m²/day across different states
  • Spain gets between 4.5 to 5.5 kWh/m² of solar irradiation per day

We have an edge. It comes to us so naturally and abundantly. Yet, we're still on our way to fully realizing the potential of solar to address energy security, access, and efficiency in the country– leaving millions of households struggling to access electricity, and the country burdened with the second-highest electricity rates in Southeast Asia. As of 2023, wind and solar shared a 2.5% contribution in the country's renewable energy mix, with solar PVs contributing 6% encompassing utility-scale and residential-level use of solar to generate energy. 

Investments and policies can set the Philippines up for success in the exploration and complete integration of solar power. The National Renewable Energy Program (NREP) outlines a nationwide goal to support the transition to cleaner energy, with a solar implementation target of 285mW by 2030. NREP, along with the Renewable Energy Act of 2008, aims to bolster solar access through incentives that reduce costs, streamlined permitting processes, and market mechanisms that ensure long-term demand.

Proving how viable the country is in being at the forefront of solar generation, The Philippines has already attracted over US$24 billion of investments in renewable energy. Yet, despite these promising circumstances, challenges remain—high upfront costs and outdated notions about solar technology continue to slow down its widespread adoption in the country. 

Unlocking the full potential of solar energy in the Philippines requires addressing these roadblocks head-on.

Bridging the gap in solar energy

The challenge in the Philippines in adopting solar at a scale that allows independence from the grid lies in old notions about solar installation and its cost.

Despite the significant advancements in solar technology, a recent study by Ateneo de Manila University highlights Filipinos' high interest in solar, yet only 20% of them are likely to pursue residential installation due to limited or outdated knowledge about rooftop solar quality, efficiency, and maintenance.

This, along with the high upfront costs of installing accessible solar solutions, shows that the road to widespread solar adoption isn’t just about tapping into an abundant resource—it’s about dismantling outdated barriers and reshaping the way we think about energy. The future of power is within reach.

Our role? Making the first step: bringing it closer to home.

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