Harness The Sun: Your Solar Business In The PH?

Solar energy in the Philippines is no longer a distant promise. The Department of Energy lists 49 companies that install solar panels, and that number excludes unregistered operators who also offer installation services. Rooftop solar, in particular, is gaining traction with entrepreneurs and DIYers sharing tutorials online. The question for many Filipinos has shifted from “should I consider solar?” to “how do I actually get into this business?”

These figures point to a market that is expanding rapidly, but the path to building a solar business in the Philippines is not straightforward. The country added 820 MW of solar capacity in 2024, breaking the previous record of 320 MW from 2021, yet this fell short of the 2 GW forecast. The gap between ambition and execution is where the real opportunities — and risks — lie.

Three Ways to Enter the Solar Market

Each path has a different risk profile, capital requirement, and regulatory burden. Rooftop installation is the most accessible for small and medium entrepreneurs, while utility-scale projects are dominated by large corporations and foreign investors. The regulatory landscape for new businesses in the Philippines adds another layer of complexity that varies significantly by sector.

What the Numbers Actually Tell Us

The government’s target of 35% renewable energy in power generation by 2030 sounds ambitious, but the current trajectory suggests a gap. Installed PV reached 2.3 GW by the end of 2024, yet the Department of Energy warned in October 2024 that licenses for 53 solar projects could be canceled due to slow progress. Some of those contracts date back to 2017. The issue is not a lack of interest — it is execution.

Contracts require feasibility studies, grid connection surveys, and other requirements within two years. Many developers missed the grid connection study deadlines. Canceled contracts can be reallocated to other developers, which means there is a pipeline of opportunities for those who can move faster and more reliably than their predecessors.

On the demand side, the economics are compelling. Philippine power prices are among the highest in Southeast Asia, partly due to market decentralization. A household consuming 200 kWh per month saw a rate hike of over P2 per kWh from Meralco in July 2024, adding P430 to their monthly bill. Solar offers a hedge against these increases, and the 10 Million Solar Rooftop Challenge aims to put solar on 10 million rooftops, generating at least 10 GW of clean energy — roughly one-third of the country’s current installed capacity.

Hidden Costs and Regulatory Traps

Waste Management and Recycling

Solar panels, batteries, and inverters are classified as hazardous waste under Republic Act 6969, which mandates proper handling, transport, storage, and disposal. The EPR Act (Republic Act 11898) passes collection responsibility to manufacturers. The problem: there is no dedicated solar panel recycling facility in the Philippines, except for lead-acid batteries. Panels are guaranteed for 20–25 years, so the waste crisis is not imminent, but it will arrive. Businesses that plan for end-of-life disposal now will have a competitive advantage when regulations tighten.

Import Dependence

Solar panels remain relatively expensive and mostly imported. Lean Leviste of Solar Philippines owns the only known local solar panel manufacturing company; other components like batteries and inverters are still imported. This exposes your business to currency fluctuations, shipping delays, and global supply chain disruptions. The government has introduced simplified permitting and green lane certification for PV projects, but import duties remain a factor.

Weather and Safety Risks

Typhoons, severe flooding, and storm surges are significant risks to solar installations. Panels should be certified to withstand local weather, and robust frames and brackets help prevent damage. The technical considerations for solar installations also include islanding — where panels continue producing electricity during a grid outage, posing safety risks. Inverters that prevent islanding can automatically disconnect panels from the grid when needed.

How to Start Your Solar Business

For Residential and Small Commercial Installation

This is the most accessible entry point. You need to register with the Department of Energy, secure the necessary permits from local government units, and comply with net-metering interconnection standards. The Net Metering Program allows customers to export excess power to the grid and receive credits. A 4.8-kW system with a 3.6-kW inverter can produce 250–300 kWh per month, and net metering can save a household up to P5,000 monthly on a 200 kWh bill. Your business model could be installation, maintenance, or both.

• 1
  Register with the DOE

  Submit your company credentials and technical qualifications. The DOE maintains a list of accredited solar installers, and being on that list builds trust with customers.

• 2
  Secure LGU Permits

  Building permits and electrical clearances are required. The process varies by city and municipality, so check with your local engineering office.

• 3
  Partner with Suppliers

  Source panels, inverters, and batteries from accredited importers or local manufacturers. Given import dependence, establish relationships with multiple suppliers to manage risk.

• 4
  Apply for Net Metering on Behalf of Clients

  Work with the local distribution utility to process net metering applications. This is a key selling point for residential customers.

For Utility-Scale Development

This path requires significant capital and patience. The government’s Green Energy Auction Program (GEAP) awards long-term PPAs with the state-owned National Transmission Corp. PPAs backing 5 GW of renewables have been awarded, with 12 GW planned for the next two rounds, potentially in 2025. The “GEA-4” round, which focuses on storage, did not occur in 2024 as planned, but the program continues. Developers can use the National Grid Corp. of the Philippines’ Transmission Development Plan for site planning. The Board of Investments reported that the power sector attracted a record PHP 1.35 trillion ($23 billion) in investment in the first eight months of 2023, with 95% directed at renewables.

For Solar Plus Storage Solutions

Battery storage is the missing piece that makes solar viable as a baseload power source. Huawei will supply the BESS for the Terra Solar project. US-based Jacobs will provide engineering and technical guidance. For smaller players, the opportunity lies in offering integrated solar-plus-storage packages for commercial and industrial clients who want to reduce their reliance on the grid. A tariff structure for solar-plus-storage BESS could stimulate competition and lower battery costs, making this more accessible over time.

Frequently Asked Questions

What to Watch Next

The solar market in the Philippines is expanding, but the gap between announced projects and completed installations is wide. The 53 projects facing potential license cancellation show that permitting and grid connection remain the biggest hurdles. For anyone entering this space, the key is not just installing panels — it is navigating the regulatory environment, managing import risks, and planning for end-of-life disposal before regulations force it. The businesses that survive will be those that treat compliance and grid integration as core competencies, not afterthoughts.

If this was useful, you might also want to read profitable side hustles Filipinos can start this weekend.

Sources

Navigating business regulations in the Philippines — A practical guide to permits, registrations, and compliance for new businesses across different sectors.

Solar rooftops: An investment ripe for the taking. BusinessMirror, October 2024.

Philippines banks on solar. pv magazine, February 2025.

Philippines solar energy market 2025: Opportunities and challenges. Nativ Techniks, 2025.