Philippine Rooftop Solar Installers Face Price Wars as Top Challenge

New Energy Nexus Philippines, a Manila-based nonprofit, has identified price competition as the primary hurdle currently confronting solar installers in the Philippines. The organization’s findings, which were reported by pv magazine, are based on an April survey of its network of rooftop solar professionals, along with subsequent research tracking changes in solar adoption since that period.

The nation relies heavily on oil imports from the Middle East and declared an energy crisis in March, a move triggered by the onset of the Strait of Hormuz crisis. At the time of the declaration, the Philippines already had the highest residential electricity rates in Southeast Asia, and those costs have continued to climb in the months since.

The energy emergency initially galvanized interest in rooftop solar solutions. Sheryl Estella, the New Energy Skills Lead at New Energy Nexus Philippines, stated to pv magazine that the combined weekly installation volume among the surveyed professionals more than doubled following the start of the crisis, surging from approximately 30 systems per week to close to 70.

While supply chain limitations were the top concern cited by installers in April, the focus had shifted by September, with pricing wars and quality issues emerging as the most pressing challenges.

Changing Consumer Preferences

A briefing paper from the organization highlights a shift in customer behavior, noting that buyers are now better informed and prepared to evaluate installers based on brand reputation, warranty terms, and after-sales support, all while prioritizing the lowest cost. The report reveals that the majority of installers successfully convert no more than 25% of their inquiries. Sales failures are most frequently attributed to customers opting for the cheapest bid or being unable to cover the upfront costs.

Estella noted that price competition remains prevalent because consumers lack a dependable method to differentiate between qualified and low-cost providers, which drives them to make decisions based solely on price while disregarding workmanship quality and post-installation service. She cited an installer’s observation that low pricing is not enough to secure serious clients, who require confidence in the system’s reliability and assurance that the company will remain accessible for support after the installation is complete.

Estella emphasized that the Philippines stands to gain from the establishment of clearer standards for solar equipment, a practical accreditation pathway for installers that includes training and assessment, and a public registry of certified products to enable consumers to make better-informed choices. She stressed that these standards must remain accessible to smaller installers, particularly those operating in provincial areas, ensuring that the professionalization of the sector allows small businesses to compete on quality and fosters long-term confidence in distributed solar systems without creating barriers to entry.

Finance and Permitting Priorities

When asked about the most effective measures to support solar installers and the broader market, Estella identified financing as the primary priority. She highlighted that installers frequently lose potential sales when customers are unable to make upfront payments. Furthermore, she argued that the solar loans planned by the Social Security System would achieve greater reach if members were permitted to apply through their chosen installer at the point of sale.

Permitting processes were identified by Estella as another critical area requiring support. Although the government has taken steps to reduce permitting durations since the onset of the energy crisis, she noted that there is currently no public data indicating whether these shortened deadlines are being met, nor are there penalties established for non-compliance. She suggested that publishing compliance data, providing a clear guide for installers, and enforcing consequences for missed deadlines would be essential to translating new regulations into faster grid connections.

The report indicates that while supply constraints are no longer the top concern for installers, the issues have merely eased rather than been fully resolved, with extended lead times still resulting in lost deals. Additionally, the document observes that although the initial surge of panic buying has subsided, interest in rooftop solar installations remains significantly higher than levels recorded prior to the start of the energy crisis.

The Philippines has established itself as a major global destination for solar panel imports, receiving 4 gigawatts of Chinese-made modules during the first four months of the current year. By July, an additional 3 gigawatts of equipment were in transit to the country.