Breaking Barriers: Why Solar Tech Adoption In The Philippines Stalls Despite Potential

Solar energy holds immense promise for the Philippines, offering a sustainable solution to rising energy costs and environmental challenges.

The Philippines is one of Southeast Asia’s most expensive countries for electricity, with average rates of $0.20 (₱11.50) per kilowatt-hour. This makes the long-term savings from rooftop solar power (RTSP) systems an attractive prospect for homeowners.

With some of the highest electricity rates in Southeast Asia—averaging $0.20 (₱11.50) per kilowatt-hour compared to $0.08 in Vietnam or $0.06 in Malaysia—the economic benefits of adopting rooftop solar power (RTSP) systems seem self-evident.

Yet, a new study by Ateneo de Manila University reveals that the adoption of solar technology in Metro Manila and surrounding provinces remains frustratingly low, with only one in five households expressing firm intentions to make the shift.

The study, conducted by economics professor Rosalina Palanca-Tan and published in Challenges in Sustainability, surveyed 403 households to understand this puzzling reluctance.

While cost remains a significant barrier, the findings suggest that other factors, such as trust in providers and lack of public awareness, weigh equally heavily in households’ decision-making processes.

The Appeal of Solar

For many Filipino homeowners, the allure of solar technology lies in its long-term savings.

By harnessing the power of the sun, households can significantly cut their electricity bills, offering much-needed relief in a country where energy costs consume a substantial portion of monthly incomes.

Beyond financial benefits, RTSP systems are widely recognized for their environmental advantages. Solar power reduces greenhouse gas emissions and air pollution, making it a vital tool in the fight against climate change.

Homeowners surveyed for the study also noted that solar panels could boost property values and enhance roof durability, underscoring its appeal as a practical, future-proof investment.

Despite these clear advantages, the journey toward widespread solar adoption is riddled with obstacles.

Barriers Beyond Cost

While the steep upfront cost of installing RTSP systems—around $1,700 (₱100,000)—is often seen as the main hurdle, the Ateneo study suggests a more nuanced reality. Many households expressed concerns about the trustworthiness of solar providers, the clarity of warranties, and the perceived quality of installations.

These issues ranked as significant as cost in influencing their decisions.

A lack of awareness further compounds the problem. Although 82% of survey respondents expressed an interest in solar technology, most admitted they had little understanding of its specific advantages or where to find reliable installers.

Common concerns included maintenance requirements and the quality of materials used in installation. This knowledge gap leaves many homeowners hesitant, even when they recognize the potential long-term benefits.

The study also found that households were more likely to adopt RTSP systems if they had friends or family members who had already done so.

Word-of-mouth recommendations played a crucial role in building trust and sparking interest, suggesting that community success stories could be instrumental in shifting public perceptions.

A Role for Government

To overcome these barriers, the Ateneo study calls for stronger government intervention. Policies that improve net metering rates, allowing households to sell excess energy back to the grid at fair prices, could significantly enhance the financial appeal of RTSP systems.

Expanding access to financing options, particularly for middle- and lower-income families, is another crucial step.

Accreditation of trustworthy solar providers could also address concerns about installation quality and build consumer confidence. In tandem with these measures, public education campaigns are essential to bridge the knowledge gap.

Highlighting success stories and sharing testimonials from satisfied RTSP users can help demystify the technology and inspire others to follow suit.

Lighting the Way Forward

The findings from Ateneo de Manila University paint a vivid picture of the potential for solar energy in the Philippines—and the obstacles that prevent it from being fully realized.

While cost is undoubtedly a factor, issues of trust, awareness, and accessibility weigh just as heavily on households’ decisions.

As the Philippines faces escalating energy costs and the growing impacts of climate change, now is the time to remove these barriers.

A coordinated effort between government, industry leaders, and communities could unlock solar energy’s potential, making it a cornerstone of the country’s sustainable future.

With the sun’s power readily available, the Philippines has an opportunity to shine as a leader in renewable energy. The question is no longer whether the technology is worth the investment, but how soon the nation can overcome its challenges to embrace a brighter, cleaner tomorrow.