Spectrum eyes P1-B expansion fund
People are now starting to see the benefit of having solar panels at home, especially with fuel price surges affecting electricity rates every so often
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People are now starting to see the benefit of having solar panels at home, especially with fuel price surges affecting electricity rates every so often
Spectrum, a wholly-owned subsidiary of the Manila Electric Company, is eyeing to invest close to a billion pesos to expand its total installed solar capacity to at least 70 megawatts by next year.
During a press chat on Friday, Spectrum chief operating officer Patrick Henry T. Panlilio said the company has about 43 MW of accumulated installed solar capacity since 2016 and he expects to close the year with a 50 MW solar size.
"Next year, we are targeting to have an additional 20 MW, but that's just the initial plan; it could further expand depending on the market. We are not limited to that because we want to grow to other segments as well," Panlilio said.
Considering market conditions, especially the depreciating power of the Philippine peso against the United States dollar, the investment for the planned expansion could range from P800 million to P900 million.
According to Panlilio, the needed capital expenditure for the development and installation of one MW is currently around P40 million to P45 million. Before the peso dipped to P58 against the dollar, the budget of such a capacity would typically range from P30 million to P35 million.
Residential uptake grows
Currently, demand from commercial and industrial customers takes up 99 percent of Spectrum's total capacity. However, Spectrum president and CEO Ferdinand O. Geluz noted that the number of residential customers seeking to invest in solar panels is starting to grow.
"People are now starting to see the benefit of having solar panels at home, especially with fuel price surges affecting electricity rates every so often. It is quite expensive, but I think people should see (solar panel installation) as an investment and not just as an expense," he said.
According to initial computations posted on Spectrum's website, any household that wants to install at least a 2-kilowatt solar panel on their roof needs to shell out a P235,000 one-time investment. With such capacity, it can help lessen carbon emissions by 2,184 kilogram. That's like planting 4,483 trees in 20 years. Potentially, households can save P3,000 monthly from this investment.
Spectrum said it can also install as much as 7 KW of solar power in any household but that would require a bigger investment at about P365,000, which can help them save at least P10,000 monthly. The company said it will also take care of its client's net metering processing.
Data from the Department of Energy showed that less than half or 43.2 percent of the country's power needs were indigenous or locally sourced and the rest were imported.
Of the indigenous resources, natural gas only has a 19.3 percent share in the total power generation mix as of July.
Hydropower takes up only 4.5 percent; solar power, 2 percent; oil-based, 2.8 percent; biomes, 0.9 percent; and wind, 0.2 percent.
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