Philippines Solar Energy Market - Growth, Trends, and Forecasts (2020 - 2025)

The market segmentation includes only the Solar Photovoltaic (PV) Market

Market Snapshot

Study Period:

2019-2025

Base Year:

2019

CAGR:

13.4 %

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Market Overview

The solar energy market in Philippines is expected to grow at a CAGR of 13.40% during the forecast period of 2020 – 2025. The solar power sector is still in its nascent stage, and while the country is going through some policy changes, the solar market in the country is expected to garner more support from the government, in the coming years. Factors such as rapid economic development and growing population are expected to drive the market during the forecast period. However, an inefficient electricity grid infrastructure in the country is expected to hinder the growth of the market studied in the coming years.

  • Solar PV market is expectd to register a significant growth due to increasing small-scale solar PV deployment during the forecast period.
  • It is estimated that replacing/integrating diesel generators with renewable energy, like solar, can save the Philippines over USD 200 million per year. Small islands in the Philippines are powered by generator-based mini-grids, which are fueled by imported diesel and bunker (freighter) oil. Furthermore, due to factors, such as grid instability, inadequate generation capacity, and lack of subsidized fuel, these islands suffer from blackouts and unplanned power outages. Therefore, off-grid electrification through renewable energy sources such as solar is expected to create significant opportunity in the near future.
  • Falling photovoltaic system prices is expecetd to drive the market during the forecast period.

Scope of the Report

The Philippines solar energy market report include:

Philippines Solar Photovoltaic (PV) Market
Installed Capacity and Forecast in MW, till 2025
Government Policies and Regulations
Key Projects
Commissioned Projects
Upcoming Projects

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Key Market Trends

Solar Photovoltaic (PV) to Register Significant Growth

  • Solar energy provides an immediate solution to the country’s growing energy needs. With steadily-falling costs of solar power equipment and the short amount of time needed to install and commission solar power projects, the solar photovoltaic systems are increasingly becoming popular among the consumers and industries across the Philippines.
  • As of 2019, the FiT scheme is the main means used to promote investment in renewable energy, with other regulatory policies, including the utility quota obligation (to be determined), net metering, etc.
  • Small-scale solar photovoltaic (PV) has been widely adopted by residential and industrial sector in the Philippines, mainly due to the declining cost of PV technology and the introduction of net metering.
  • However, the residential and commercial sector has witnessed limited growth in the past few years, despite the net metering policy in place, for PV installation of up to 100 kW in size, since 2013. The slow growth has been witnessed mainly due to administrative, financial, and regulatory hurdles, preventing small owners and medium-sized enterprise from installing rooftop solar.
  • Thus, the market is expected to register significant growth due to the FiT scheme and the adoption of small-scal solar PV during the forecast period.

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Falling Photovoltaic System Prices to Fuel the Demand

  • The solar industry has cut costs dramatically in the past six years through economies of scale. As the market was flooded with equipment, prices plummeted. In 2011, the price of solar panels declined by 48.4%, while the PV system costs dropped by more than 30% since 2008. As of 2019, solar photovoltaic (PV) modules are more than 80% cheaper than in 2009.
  • As a result, the cost of electricity from solar PV has also fell by almost three-fourth in 2010-2019 and it continues to decline. The cost reductions are driven by continuous technological improvements, including higher solar PV module efficiencies. The industrialization of these highly modular technologies has yielded impressive benefits from economies of scale and greater competition, to improved manufacturing processes and competitive supply chains.
  • In 2019, module prices dipped as low as USD 0.34/W, but were relatively higher for modules from Chinese majors, and good quality modules can now be produced sustainably for USD 0.4/W or less.
  • The production costs are projected to fall by as much as 59% by 2025, making solar the largest source of cheaper power.
  • Thus, the decline in photovoltaic system prices is expected to increase the adoption of solar power in the Philippines and drive the market during the forecast period.

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Competitive Landscape

The Philippines solar energy market is consolidated. Some of the major companies include Solar Philippines Power Project Holdings, Solenergy Systems Inc., Vena Energy, Solaric Corp., and Trina Solar Ltd.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions

    4. 1.4 Study Deliverables

    5. 1.5 Research Phases

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET OVERVIEW

    1. 4.1 Introduction

    2. 4.2 Evolution of Solar Power Market in the Philippines

    3. 4.3 Renewable Energy Mix, 2019

    4. 4.4 Supply of and Demand for Electricity

    5. 4.5 Recent Trends and Developments

    6. 4.6 Government Policies and Regulations

    7. 4.7 Market Dynamics

      1. 4.7.1 Drivers

      2. 4.7.2 Restraints

    8. 4.8 PESTLE Analysis

  5. 5. MARKET SEGMENTATION

    1. 5.1 Philippines Solar Photovoltaic (PV) Market

      1. 5.1.1 Installed Capacity and Forecast in MW, till 2025

      2. 5.1.2 Government Policies and Regulations

      3. 5.1.3 Key Projects

        1. 5.1.3.1 Commissioned Projects

        2. 5.1.3.2 Upcoming Projects

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Market Share Analysis

    4. 6.4 Key Company Profiles

      1. 6.4.1 Solar Philippines Power Project Holdings

      2. 6.4.2 Solenergy Systems Inc.

      3. 6.4.3 Vena Energy

      4. 6.4.4 Solaric Corp.

      5. 6.4.5 Trina Solar Ltd

      6. 6.4.6 AC Energy

      7. 6.4.7 Cleantech Global

      8. 6.4.8 Citicore Power Inc.

      9. 6.4.9 Aboitiz Power Corporation

      10. 6.4.10 Helios Solar Energy Corporation (HSEC)

  7. *List Not Exhaustive
  8. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

** Subject to Availability

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