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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Motorists queue at a Metro Manila gas station with elevated fuel prices despite Strait of Hormuz safe passage assurances amid Iran war effects.
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Fuel prices stay high in Metro Manila despite Hormuz safe passage assurances

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Despite Philippine officials securing safe passage assurances through the Strait of Hormuz from Tehran, fuel prices in Metro Manila remained elevated on April 4 amid lingering effects of the Iran war—following President Marcos' March 24 national energy emergency declaration.

Chinese electrical equipment companies are boosting their presence in Brazil to compete in the battery market, as the country gears up for large-scale storage systems. A government auction planned for this year is expected to draw billions in investments, targeting 2 GW of capacity. Manufacturers like Sungrow and Huawei have already restructured teams and begun talks with potential clients.

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Fuel prices in the Philippines are set to surge next week due to escalating tensions in the Middle East, according to the Department of Energy. Minimum increases are estimated at P19 per liter for diesel, P9 for gasoline, and P31 for kerosene, though diesel could reach P90 per liter without staggered hikes. The DOE has warned against hoarding and price manipulation.

The Manila Electric Company (Meralco) has implemented a P0.6427 per kilowatt-hour increase in electricity rates for March 2026. This results in an approximately P129 rise in monthly bills for residential customers using 200 kWh on average. The hike is mainly driven by higher transmission charges from a surge in ancillary services by the National Grid Corp. of the Philippines (NGCP).

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Energy Secretary Sharon Garin warned that a potential fuel supply shortfall poses a greater risk than rising pump prices amid Middle East tensions. The Philippines has sufficient fuel supply for April, but the government is focused on preventing depletion. It is exploring alternative sources to sustain oil imports.

The Iran war has caused worldwide petrol price hikes, expected to accelerate global electric vehicle (EV) uptake. In China, more than half of new car sales were EVs in 2025, potentially saving US$28 billion a year in avoided oil import costs.

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Energy experts warn that Colombia faces a real risk of electrical imbalance due to rising consumption and delays in generation projects. The system shows alert signs after 30 years without blackouts. Diversifying sources and improving transmission are urged to avoid rationing in 2026 and 2027.

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