Philippines solar installers cite price wars, quality as top concerns in NEX survey

New Energy Nexus (NEX) Philippines has identified price wars and quality assurance as the leading concerns for the country's rooftop solar installers in September. The organization, which tracks the local solar industry, conducted a survey of installers in April and repeated the exercise recently to gauge changing market conditions.

Market Context

For Philippine solar installers, supply limitations were the primary worry in April. This strain grew after the nation announced an energy crisis in March, triggered by the Strait of Hormuz incident. As the country relies heavily on Middle Eastern oil imports, it remains exposed to disruptions in that area.

During that same period, the Philippines recorded the highest residential electricity rates in Southeast Asia. While survey results highlight the current emphasis on pricing and quality, no information has been released on whether permitting timelines for these projects are being adhered to.

Demand and Sales Dynamics

After the energy crisis began, weekly solar installations in the Philippines jumped significantly, climbing from 30 to close to 70. Sheryl Estella, New Energy Skills Lead at NEX Philippines, noted that most installers fail to close more than a quarter of their prospects.

Estella stated, "Cheap alone is no longer enough. Serious clients want assurance that the system is reliable and that the company will still be there after installation." These quality worries align with regulatory changes, as the Government of the Philippines shortened permitting timelines when the crisis emerged, despite the absence of penalties for failing to meet these deadlines.

Supply and Financing

• The Philippines brought in 4 GW of Chinese solar panels over the first four months of this year.
• By July, another 3 GW of solar panels were en route to the nation.
• Sheryl Estella, New Energy Skills Lead at NEX Philippines, observed that installers forfeit sales when buyers lack the ability to pay immediately.
• Estella indicated that the Social Security System’s intended solar loans would have broader reach if members could submit applications directly through their installer at the point of sale.
• While supply constraints have relaxed, they have not been fully resolved.
• Demand has moved beyond the panic buying phase yet continues to exceed pre-crisis levels.

Regulatory Gaps and Permitting Enforcement

Sheryl Estella, New Energy Skills Lead at NEX Philippines, noted that the government releases no information on if reduced permitting timelines are actually fulfilled and imposes no fines when they are exceeded. She contended that sharing adherence metrics, providing a simple manual for technicians, and enforcing repercussions for delays would accelerate grid connections under the new regulations. Additionally, Estella called for more defined specifications for solar hardware and a workable certification process backed by education and testing, which should include a public register of approved items. She stressed that these requirements need to be attainable for smaller firms, particularly those in rural provinces, allowing small enterprises to rival others on quality without creating additional barriers to entry.

What to watch

No timeline has been set for when or if the government will implement installer accreditation or publish product lists.