Here’s why more SMEs are going solar, and why waiting could cost you

The Philippines is one of the most attractive markets for solar energy, blessed with abundant sunlight yearround to make solar installations highly productive.

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For business owners, this natural advantage - combined with improved solar technology and supportive government policies - has created an unprecedented opportunity to revolutionize how they power their operations.

Many businesses remain cautious about switching to solar, often due to perceptions that it's expensive, complex, or uncertain in returns on investment. In many cases, it's simply because much of solar's potential remains unknown. But as technology, financing, and installation processes have evolved, solar has become an accessible, cost-stable solution that is worth a closer look for SMEs seeking stability and long-term savings.

In general, electricity rates for Philippine businesses are over 34% higher than the Asian average. According to Global Petrol Prices, the average cost of electricity for Philippine businesses in 2024 is $0.146 (P8.323) per kWh. In Southeast Asia, we pay the second-highest rate after Singapore.

For most small and medium enterprises (SMEs), electricity ranks among the top operational expenses alongside rent and payroll. The structural factors driving these costs make future increases almost inevitable. Over 50% of the Philippines' power plants rely on imported fuel, creating vulnerability to both global price volatility and peso devaluation. Recent geopolitical events and impacts of climate change have also intensified this unpredictability, making it nearly impossible to budget accurately for electricity costs.