Solar demand surge overwhelms local industry

A surge in demand for solar installations in the Philippines has overwhelmed the local industry, leading installers to reject clients or impose longer waits due to low supply from China. The rush stems from fears of fuel price spikes after the US and Israel's attack on Iran closed the Strait of Hormuz. Installers report clients now eagerly seeking solar for energy security.

The local solar industry, reliant on components from China, struggles to meet the sudden demand surge. “We had to turn down some because, the story is all, ‘I want it now,’” Richmond Reyes, president of EcoSolutions PH, told Rappler in an interview.

Solar panel prices have skyrocketed by up to 30%, aluminum railings tripled, and a high-quality battery once priced at P85,000 now exceeds P100,000. Reyes explained they avoid stockpiling due to rapidly evolving technology. Clients who previously complained about costs are now returning to inquire about stock.

The trigger is the war's impact: the US and Israel's attack on Iran closed the Strait of Hormuz, spiking fuel prices and raising fears of power outages or higher electricity bills. On April 10, the Center for Energy, Ecology, and Development warned of a possible P5 per kWh increase in the Meralco area, while Energy Secretary Sharon Garin predicted only a minimal rise of 30 to 40 centavos per kWh.

In the Visayas and Mindanao, waits are longer due to shipping from Manila—two weeks to Cebu, per Lito Villar of Clean Energy Advocates. Helios shifted from three to five clients monthly to seven weekly. More skilled workers are needed, said Brenda Valerio of New Energy Nexus Philippines, which supports the New Energy Academy with 636 graduates as of 2025.

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