Philippine Homeowners Turn to Solar as Global Energy Crisis Sends Electricity Bills Soaring

Manila, Philippines – For years, Keith Cantera and his family had considered installing a home solar power system. However, the upfront cost of approximately $5,000 for solar panels was substantial, prompting them to postpone the plan.

This year, however, the conflict between the United States and Israel over Iran disrupted global energy markets, driving electricity prices upward. Cantera explained that his family’s monthly bill, which had averaged around $150 prior to the conflict’s escalation in late February, rose to as much as $220.

Eight months after that shift, the Cantera family is now having solar panels installed on their rooftop.

“The cost is about the same as paying our electric bills for three or four years based on the current rate,” Cantera said. “But in the fifth year, we’ll have recovered our investment, and electricity will essentially be free.”

Cantera represents a growing trend among Filipino homeowners adopting solar power, a shift driven by the Philippines’ historically high electricity rates in Southeast Asia — surpassed only by Singapore, where average incomes exceed those in the Philippines by more than tenfold.

According to a report from the energy think tank Ember, rooftop solar installations in the Philippines have nearly doubled since early 2025.

During the initial months of the conflict (March to May), heightened demand for solar power resulted in $407 million worth of panel imports into the Philippines, based on government trade data from China — the primary source of most solar panels. The Philippines emerged as the largest single overseas market during this period, although the Netherlands imported a greater volume, which it subsequently redistributes across Europe.

Lexus Grepo, CEO of solar power provider Solarmaxx, confirms this surge in demand.

“There is a 30-day wait because solar panel shipments can’t keep up,” Grepo said. “In March, we had 40 projects, which was almost triple our monthly clientele. Since then, we have been setting up 25 to 30 systems a month.”

Grepo anticipates that demand will remain strong regardless of whether Middle Eastern tensions subside or global energy shipping routes normalize.

“I think people now realise that the world is an unpredictable place, so they have to be ready for any eventuality. Filipinos now see that they don’t necessarily have to be at the mercy of the global energy market.”

The Philippines stands out in the region as one of the few nations without electricity subsidies, depending on imported coal and gas for over 70% of its power generation. Compounding this issue, the Philippine peso has depreciated to a record low exceeding 63 per US dollar, further increasing the cost of these energy imports.

In late March, President Ferdinand Marcos Jr. proclaimed a national energy emergency, citing the ongoing conflict and what he characterized as an ‘imminent threat’ to the country’s energy supply. Despite this declaration, electricity rates have continued to climb.

The transition to solar energy is further fueled by consumer frustration with utility companies, which have faced criticism for charging customers for ‘system losses’ — a category that includes losses from illegal connections.

For Cantera, the realization that he was being charged for electricity consumed by others proved to be the tipping point.

“Who would agree to paying for something that you did not use? It’s not like the money we spend for electricity just fell from heaven,” he added.

Although the growing demand for solar power is evident, the initial investment required for a residential solar system remains prohibitive for many Filipinos. In March, the government introduced a loan program for rooftop solar installations, though access is currently limited to public-sector employees.

Officials anticipate that utility-scale renewable energy projects currently in development will help reduce electricity costs for the broader population. Notable among these is a 3,500-hectare (8,650-acre) solar facility under construction north of Manila, which is slated to become the world’s largest upon completion. Once operational, this project is projected to generate 850 megawatts of power, sufficient to supply approximately 2.4 million households.

However, some consumers note that the timeline for these large-scale projects may span several years, leaving them vulnerable to rising electricity costs unless they pursue individual solutions such as rooftop solar.

“It’s just so unpredictable nowadays. You have the impending El Nino weather pattern. There’s still war, the continuing fuel price hikes and so much more,” Cantera said. “So why not utilise a natural resource?”

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