The Philippines, with its abundant sunlight and growing energy demands, is perfectly poised to harness the power of rooftop solar (RTS). RTS is an ideal way to address the pressing issues of energy access, security, and affordability in the country. As the shift to clean energy accelerates, the Filipino rooftop solar industry’s journey offers valuable insights into both the potential and the challenges of scaling clean energy—and why it’s important to support entrepreneurs venturing into this space.
Why does the Philippines need rooftop solar?
Rooftop solar holds immense promise as a decentralized energy solution. For a country like the Philippines, where energy costs are high, outages are frequent, and rural areas often suffer from lack of access, RTS provides a clear pathway toward a more secure and affordable future. Unlike large power plants that require significant infrastructure and investment, rooftop solar systems are scalable and relatively simple to deploy. This makes them particularly attractive to homes and businesses seeking to reduce energy costs, while contributing to the country’s renewable energy goals.
From beginnings to growth
The RTS industry in the Philippines started small in the early 2000’s, steadily growing through supportive policies such as the Renewable Energy (RE) Act of 2008 and the introduction of net metering. As of 2024, the net metering program has enabled over 9,000 qualified end-users to connect their systems to the grid, allowing consumers to sell excess electricity back to the utility.
Organizations like the Philippine Solar and Storage Energy Alliance (PSSEA), Renewable Energy Association of the Philippines (REAP), and the Association of Solar Installers of the Philippines (ASIP) have emerged as key players in promoting solar adoption. These industry associations advocate for better policies, provide training, and foster a sense of community among stakeholders, driving the sector forward.
Photo from the Davao Solar Community Meetup Event in May 2024, a gathering of solar installers, companies and stakeholders in the Davao Region.
Challenges in scaling rooftop solar
Despite these promising developments, RTS still faces significant hurdles, particularly when it comes to scaling beyond Metro Manila. Today, only a small fraction of the country’s rooftops are outfitted with solar panels, leaving a massive untapped market.
One of its key barriers to growth is the fragmented implementation of policies across different regions. The roles of government agencies and implementing bodies remain unclear and inconsistent, leading to delays and miscommunications. Furthermore, product standards are lacking, which leaves room for subpar equipment to enter the market. This also hampers the industry’s reputation and undermines consumer confidence.
Financing is another major obstacle. Many small- to medium-sized installers struggle to secure affordable financing options, limiting their ability to expand. The fragmentation of players within the industry exacerbates these problems, as knowledge sharing between companies is limited. This also hinders collaboration with government agencies, resulting in a missed opportunity to refine policies and improve the business environment for rooftop solar.
Unlocking the potential of rooftop solar MSMEs
At the heart of addressing these challenges lies the empowerment of micro, small, and medium enterprises (MSMEs) within the rooftop solar sector. Solar installers, particularly those in the countryside, play a critical role in bridging the energy access gap. In rural areas, where the need for secure and affordable energy is even more pronounced, these small-scale businesses are essential.
By equipping MSMEs with the tools to understand the importance of service quality, the potential for competitive advantage, and the value of strategic partnerships, we can enable these companies to scale their operations. This would accelerate the adoption of rooftop solar in underserved areas, creating a ripple effect of benefits for both the industry and the communities they serve.
To this end, New Energy Nexus—the only non-profit clean energy accelerator in the country—has been supporting small solar businesses through initiatives such as the Solar Innovation Program. Beginning in 2021, the annual program provides players in the space with seminars, learning sessions, and workshops to enhance their competitiveness in the evolving Filipino energy sector.
Photo from the Solar Innovation Program 2024
Join us in scaling rooftop solar in the Philippines
The future of rooftop solar in the Philippines is bright, but it requires the collective effort of stakeholders across the energy ecosystem. At New Energy Nexus, we are committed to supporting MSMEs in the rooftop solar sector, providing the resources, training, and connections they need to grow and thrive. By working together, we can overcome the barriers to scaling rooftop solar and unlock the immense potential that this technology holds for our country.
If you’re a solar installer, policymaker, or investor interested in contributing to the clean energy future of the Philippines, we invite you to join us in this mission. Let’s build a more sustainable, energy-secure future, one rooftop at a time.
Learn more here.
Brenda Valerio is the country director of New Energy Nexus Philippines.
