Barriers to solar tech adoption in the Philippines extend beyond cost, study finds

A new study from Ateneo de Manila University reveals that despite the Philippines' vast potential for solar energy, the adoption of rooftop solar power (RTSP) remains low due to factors beyond its initial cost. While many households are aware of its economic and environmental benefits, a lack of public awareness and concerns over the credibility of providers continue to hinder widespread use.

The study, conducted by Professor Rosalina Palanca-Tan of the Department of Economics and published in Challenges in Sustainability, surveyed 403 respondents to explore the reasons why households in Metro Manila and neighboring provinces are hesitant to invest in solar technology, despite the pressing need for affordable and sustainable energy solutions.

Major selling points: long-term savings, eco-friendliness

The Philippines has some of the highest electricity rates in Southeast Asia—as high as $0.20 (approximately ₱11.50) per kilowatt-hour on average, compared to as low as $0.08 (~₱4.50) in Vietnam or even $0.06 (~₱3.50) in Malaysia. This makes the potential long-term savings from RTSP its biggest selling point for many households.

Homeowners also recognize that solar energy contributes to environmental protection by reducing greenhouse gas emissions and air pollution, helping combat the effects of climate change. Overall, the respondents generally viewed RTSP as a sound long-term investment, with added advantages such as increased property value and enhanced roof durability. 

However, the upfront cost of installing solar panels remains a major hurdle to public adoption: a home RTSP setup could easily go for well over $1,700 (₱100,000), equivalent to more than half a year’s salary for minimum wage workers. Many households are unsure if this initial expense is justified by long-term financial and environmental returns.

In any case, cost by itself does not significantly influence adoption decisions, the Ateneo survey found. Respondents said that the trustworthiness of providers, clarity on warranties, and the perceived quality of the installations themselves were just as important considerations as cost, if not more so.

Government support to spur public adoption

Although 82% of surveyed households expressed some interest in adopting solar panels, only 20% had firm intentions to do so. This gap apparently stems from a lack of knowledge: while most survey respondents said they understood the broad concept of renewable energy and its role in addressing climate change, few were aware of the specific advantages of RTSPs and how to access reliable installation services. Concerns over the quality of materials, maintenance needs, and provider credibility also added to their reluctance.   

Thus, the study urges stronger government intervention and public education campaigns. In particular, the study suggests improving net metering rates, expanding access to financing options, and accrediting trustworthy RTSP providers to build consumer confidence.

Word-of-mouth recommendations also proved instrumental in decision-making, as households with friends or family who had adopted solar power were more likely to consider it for themselves as well. Promoting success stories and community-based testimonials could be a crucial key to shifting perceptions and increasing adoption rates of RSTP in the Philippines.