Philippines Solar Surge: Geopolitical Tensions and High Energy Costs Drive Demand for Renewable Power

Manila, Philippines – The escalating global energy costs, exacerbated by the United States-Israel war on Iran, have spurred a significant boom in solar power adoption across the Philippines. For families like Keith Cantera's, the decision to invest in solar panels, previously a considerable expense of up to $5,000, has become increasingly practical.

Cantera noted a substantial increase in his monthly electricity bills, rising from approximately $150 before the conflict in late February to as much as $220. This surge in costs made the investment in solar panels, which he calculates will be recouped within five years, a financially sound decision. "The cost is about the same as paying our electric bills for three or four years based on the current rate," Cantera stated. "But in the fifth year, we’ll have recovered our investment, and electricity will essentially be free."

The Philippines, already grappling with some of the highest electricity costs in Southeast Asia, has seen a dramatic rise in rooftop solar installations, nearly doubling since early 2025, according to a report by the energy think tank Ember. During the initial months of the war, from March to May, the demand for solar power led to $407 million in panel imports from China, making the Philippines the largest single overseas market during that period, surpassing even the Netherlands in terms of direct imports.

Lexus Grepo, CEO of Solarmaxx, a solar power supplier, confirmed the unprecedented demand. "There is a 30-day wait because solar panel shipments can’t keep up," Grepo explained. "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 sustained demand, regardless of easing Middle East tensions, as Filipinos seek energy independence. "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 nation's energy sector is heavily reliant on imported coal and gas, accounting for over 70 percent of its power mix. The recent depreciation of the Philippine peso to a record low against the US dollar has further increased the cost of these imports. In response, President Ferdinand Marcos Jr declared a national energy emergency in late March, citing the "imminent danger" to the national energy supply.

Adding to the financial strain, many Filipino consumers are angered by electricity companies charging for "system losses," which include costs associated with illegal connections. Cantera expressed his frustration, stating, "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."

Despite the growing demand, the high upfront cost of solar systems remains a barrier for many. While the government launched a loan initiative for public sector workers in March, broader access is limited. Large-scale renewable energy projects, including a planned 3,500-hectare solar farm near Manila projected to be the world's largest, are in development. However, consumers like Cantera are concerned about the lengthy completion times for these projects, emphasizing the immediate need for individual solutions amidst unpredictable factors like the El Nino weather pattern, ongoing wars, and fuel price hikes. "So why not utilise a natural resource?" he questioned.