The solar energy market in the Philippines has been growing exponentially since 2018. In fact, the Philippines Board of Investments (BOI) had approved eight solar projects that year. The Solar Philippines Commercial Rooftop Projects Inc. oversaw all eight that were equivalent to $1.65 billion.
Even though, as of today, the solar power industry is still on the nascent stage, it is expected to gain massive support from the government moving forward.
The Philippines has hot and humid weather, which means households always require air conditioning. Thanks to the introduction of solar air conditioning, many homeowners can reduce their utility bills.
Some of the factors that will drive growth in the solar energy sector are the growing population, as well as the Philippines’ rapid economic development. When the Philippines succeeds in replacing diesel generators in most islands with solar energy, there will be a significant reduction in power outages.
1. Accessibility for Private Households
A couple of years back, utility-scale solar was difficult to achieve due to the market’s regulatory changes. The price competition was too high, and only the largest capitalized developers could compete.
However, this is set to change because the new generation of renewable energy can now be distributed to private households. This ensures that each household can install a solar-powered air conditioner to reduce utility costs.
It is a huge win for homeowners and business people because they can now have more control over their energy consumption. Photovoltaic panels can be installed on the roofs of homes, apartment buildings, as well as business establishments.
This means that business owners can generate as much energy as they desire and even sell residual to energy supplies near them.
2. Significant Growth of Solar PV
The production cost of solar energy is expected to fall significantly between 2020 and 2025. As a result, solar will take first place for the cheapest source of energy in the Philippines.
The growth of photovoltaic systems in the Philippines will provide an immediate and more permanent solution to the country’s energy needs. The market is already registering a significant fall in the costs of photovoltaic cells.
Many households are jumping on this bandwagon and taking advantage of the affordability of solar power equipment. As a household in the Philippines, you greatly benefit from purchasing a solar air conditioner.
Residents are also adopting small-scale solar photovoltaic systems because the declined cost of PV technology makes financial sense.
3. Increased Grid Parity
The Philippines has a huge population, and without alternative sources of energy, the grid easily gets unstable. However, due to the introduction of renewable sources of energy like solar and wind, we can see a future where grid parity is guaranteed.
Since more private households can now depend on solar energy for their electricity needs, grid parity has steadily increased. Most households today use solar air conditioner to maintain a comfortable indoor environment. This is a highly cost-effective solution because solar energy is steadily getting cheaper than traditional energy sources.
Not to mention that the overall cost of electricity from the gird is decreasing as well. This can be attributed to the contribution of solar PV. Technological advancements are ensuring manufacturers can produce solar panels with higher solar PV module efficiency.
This means that you can install a solar hybrid air conditioner at home without worrying about the running cost.
There are plans underway to develop solar-storage microgrids in the Philippines. When this plan succeeds, solar energy will play a huge role in improving environmental health, human health, as well as people’s quality of life.
This will be a huge step towards achieving Philippine’s national climate change, greenhouse gas emissions reduction and renewable energy goals. Solar energy production allows the Philippines to reduce its reliance on fuel. The transition to low-carbon energy sources like wind and solar opens up economic development opportunities from a climate perspective.
It is essential to pair solar systems with solar-storage because this boosts the positive impact solar energy has on the economy.
During spring and summer months, the Philippines experiences great solar generation. However, without a storage solution for solar energy, this energy cannot be saved for later. Storage prices are still very high, not only in Asia as a whole but the world over. There are already hybrid solar storage projects in place, but they’re nothing close to bulk solar storage.
One thing is certain though, the prices keep coming down, and more and more solar farms are springing up. Soon enough, the Philippines will be in a position to store solar energy and eliminate over-reliance on fuels.
Harnessing solar energy has ensured that many households in the Philippines can make it through hot and humid days. Solar air conditioners allow homeowners to achieve a comfortable indoor environment without digging too deep into their pockets. These latest trends show that things are only getting better. We can see a future where solar energy is the main source of electricity in the Philippines.