Solar power booms in Philippines as war on Iran spikes energy costs | Renewable Energy News
Manila, Philippines – Keith Cantera and his family have contemplated installing a solar power system in their home for years. However, the prospective cost of up to $5,000 for solar panels discouraged them from moving forward with the idea until recently.
The escalation of the United States-Israel conflict involving Iran this year disrupted global energy markets, causing a significant spike in electricity prices. Cantera reported that his family’s monthly electric bill surged from approximately $150 before the conflict began in late February to as much as $220.
Eight months later, the decision to install solar panels on their rooftop has been made.
“The cost is about the same as paying our electric bills for three or four years at the current rate,” Cantera said. “But in the fifth year, we’ll have recovered our investment, and electricity will essentially be free.”
Cantera is among a growing number of Filipino homeowners opting for solar power as the nation has historically faced the highest electricity prices in Southeast Asia, rivaled only by Singapore, where the average income is significantly greater.
A report by the energy think tank Ember indicated that the adoption of rooftop solar panels in the Philippines has nearly doubled since early 2025. Between March and May of this year, the demand for solar panels led to $407 million in imports, according to government trade data from China, the primary manufacturer of these panels. This surge established the Philippines as the largest overseas market for solar panels during that period, trailing only the Netherlands, which redistributes panels to the broader European market.
Lexus Grepo, CEO of Solarmaxx, a solar power supplier, has witnessed this remarkable uptick in demand firsthand.
“There is currently a 30-day wait for installations because supply cannot keep up with demand,” Grepo said. “In March, we managed 40 projects, nearly tripling our typical monthly clientele. Since then, we have been installing 25 to 30 systems a month.”
Grepo anticipates that demand will continue, even if geopolitical tensions ease and shipping routes for energy supplies reopen.
“I think people now realize that the world is unpredictable, so they feel they must prepare for any eventuality,” he noted. “Filipinos understand they do not have to rely solely on the global energy market.”
The Philippines, where electricity is not subsidized, depends on imported coal and natural gas for over 70% of its energy. The recent depreciation of the peso, which fell to a record low of over 63 to the U.S. dollar, has further exacerbated the cost of these imports.
In late March, President Ferdinand Marcos Jr. declared a national energy emergency, citing the conflict and the “imminent danger” to the nation’s energy supply. Despite this declaration, electricity rates have continued to rise.
Public dissatisfaction with electric companies, particularly regarding charges for so-called system losses—including losses from illegal connections—has also contributed to the shift toward solar energy. Cantera expressed frustration over paying for electricity he did not consume.
“Who would agree to paying for something that you did not use? It’s not like the money we spend on electricity just fell from heaven,” he remarked.
Despite the strong demand for solar power, the upfront cost remains prohibitive for many Filipinos. In March, the government introduced an initiative providing loans for residential rooftop installations, but these loans are currently available only to public sector employees.
Officials are optimistic that various renewable energy projects in development will eventually lower electricity costs. Notably, a projected 3,500-hectare solar farm north of Manila is anticipated to become the world’s largest, generating 850 megawatts of electricity for 2.4 million households when fully operational.
However, some consumers worry that such large-scale projects may take years to complete, leaving them with escalating electricity bills in the interim.
“It’s just so unpredictable nowadays,” Cantera said, referencing the ongoing fuel price hikes, the war, and the looming effects of the El Niño weather pattern. “So why not utilize a natural resource?”
