As rising electricity costs continue to burden consumers, more Filipino households are turning to solar energy as an alternative power source, prompting Meralco to call for stricter regulation of unregistered installations.

Solar energy emerged as a key sustainable energy resource, with 27.2 percent of households using it in 2023, according to the Household Energy Consumption Survey (HECS) conducted by the Philippine Statistics Authority (PSA) and the Department of Energy (DOE) as part of the Comprehensive Regional Energy Study.

In 2024, a study by Ateneo de Manila University found that 82 percent of surveyed households expressed interest in shifting to solar panels, while 20 percent had firm plans to do so. The study concluded that high costs and lack of awareness about solar energy continue to discourage Filipino households from adopting the technology, prompting calls for stronger government action and public education.

According to CleanTechnica, one of the main drivers behind the growing interest in solar energy is the country’s high electricity retail rates, which often exceed P10 to P12 per kilowatt-hour. A formally installed small residential rooftop solar system can cost between P200,000 and P350,000.

Amid the increasing adoption of solar energy, Meralco Vice President and Head of Utility Economics Lawrence Fernandez urged government officials to enforce stricter technical and safety standards for solar equipment and regulate unregistered or “guerrilla” solar installations during a recent Senate hearing.

Fernandez also expressed support for Senator Sherwin Gatchalian’s proposed amendments to the Renewable Energy Act, which seek to streamline the net metering program, grant the Energy Regulatory Commission authority to determine the program’s scope, and simplify permits for connecting solar panels to the power grid.

Meralco currently has around 20,000 net metering installations within its franchise area, with a combined capacity of more than 170 megawatts. Larger commercial entities have also installed an additional 370 megawatts of solar capacity outside the program, bringing the total registered solar capacity in Meralco’s franchise area to around 500 megawatts.

However, Fernandez emphasized to the DOE and the Department of Trade and Industry (DTI) the need to adopt stricter standards for solar equipment.

“We have seen that there is already a standard for inverters, for example, but there are installers who do not use those inverters that adapt to international standards,” Fernandez said.

Fernandez also raised concerns over the growing number of unregistered “guerrilla” solar installations that bypass local government permits.

“There are a lot of installations compared to what’s registered. So given the streamlining, maybe the bill can also include a provision on how the industry can regularize those guerrilla installations,” Fernandez said, citing data from the Institute for Climate and Sustainable Cities (ICSC) showing that one-third of solar units within Meralco’s franchise area are unregistered.

Under the Renewable Energy Act of 2008, consumers may install up to 100 kilowatts of renewable energy facilities through the net metering program, allowing excess electricity to be exported back to the grid in exchange for bill credits. However, CleanTechnica noted that the program has faced criticism over long approval timelines and complex permitting requirements.