Philippines Solar Energy Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 25.20 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Philippines Solar Energy Market Analysis
The Philippines solar energy market is estimated to install 1700 Megawatt by the end of this year and is projected to reach 5229.62 Megawatt in the next five years, registering a CAGR of over 25.2% during the forecast period.
- Over the medium period, factors such as rapid economic development and a growing population are expected to drive the market during the forecast period. The growing demand for solar energy-based power generation and declining photovoltaic system prices are expected to drive the market during the forecast period.
- On the other hand, the country's inefficient electricity grid infrastructure is expected to hinder the market's growth in the coming years.
- Nevertheless, it is estimated that replacing/integrating diesel generators with renewable energy, like solar, can save the country over USD 200 million per year. Small islands in the Philippines are powered by generator-based mini-grids fueled by imported diesel and bunker (freighter) oil. These islands suffer from blackouts and unplanned power outages due to grid instability, inadequate generation capacity, and lack of subsidized fuel. Therefore, off-grid electrification through renewable energy sources, such as solar, is expected to create a significant opportunity in the future.
Philippines Solar Energy 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 solar power equipment costs and the short time needed to install and commission solar power projects, solar photovoltaic systems are increasingly becoming popular among consumers and industries across the Philippines.
- With the increased solar PV installations across the country, the solar PV segment is expected to grow significantly due to increasing small-scale solar PV deployment during the forecast period. The Department of Energy (DOE) released the Philippine Energy Plan 2020-2040, establishing the country's goal for renewable energy to reach 35% of its power generation mix by 2030 and 50% by 2040. This development, in turn, will culminate in the increasing deployment of solar PV across the country.
- According to International Renewable Energy Agency, as of 2022, the country witnessed 1,625 MW of solar PV installations with an annual growth rate of 18% compared to the previous year. It is observing growing demand for solar PV from industrial and commercial segments, which may positively impact the growth of the solar energy market in the Philippines.
- Small-scale solar photovoltaic (PV) has been widely adopted by the residential sector in the Philippines, mainly due to the declining cost of PV technology and the introduction of net metering.
- However, despite the net metering policy, the residential and commercial sector has witnessed limited growth for PV installation of up to 100 kW in size since 2013. The slow growth has been mainly due to administrative, financial, and regulatory hurdles, preventing small owners and medium-sized enterprises from installing rooftop solar.
- Hence, due to the increasing solar photovoltaic installations across the country, the solar PV segment will likely dominate the Philippine solar energy market during the forecast period.
Declining Costs of Solar PV to Drive the Market
- The solar industry has cut costs dramatically through economies of scale in the past six years. 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 2022, solar photovoltaic (PV) modules were more than 80% cheaper than in 2011, culminating in an increase in solar installations across the country and favoring the market's growth.
- The cost of electricity from solar PV declined by almost three-fourths during 2010-2022 and continues to decline. Continuous technological improvements, including higher solar PV module efficiencies, drive cost reductions. The industrialization of these highly modular technologies yielded impressive benefits from economies of scale and greater competition to improved manufacturing processes and competitive supply chains.
- As of 2021, global module prices dipped as low as USD 0.24/W. As the prices of solar panels are declining, consumers are showing interest in installing solar panels to incur tax benefits and low electricity bills, which impacts the growth of the solar energy market in the Philippines.
- Thus, the declining photovoltaic system prices are expected to increase the adoption of solar power in the Philippines and drive the market during the forecast period.
Philippines Solar Energy Industry Overview
The Philippines Solar Energy Market is moderately fragmented. Some of the major companies include (in no particular order) Solar Philippines Power Project Holdings, Solenergy Systems Inc., Vena Energy, Solaric Corp., and Trina Solar Ltd.
Philippines Solar Energy Market Leaders
Solar Philippines Power Project Holdings
Solenergy Systems Inc.
Vena Energy
Solaric Corp.
Trina Solar Ltd
*Disclaimer: Major Players sorted in no particular order
Philippines Solar Energy Market News
- June 2023: Solar Philippines Neva Ecija Corporation (SPNEC) intends to build a 3.5GW solar farm in the Philippines. The project extension will take place in the same region as its existing 500MW solar facility in the northern province of Luzon. The total project, including the 500MW section already under development, encompasses roughly 3,500 hectares of land that have been bought or are being acquired.
- May 2023: The Philippines' Department of Energy chose SunAsia Energy, a Philippines-based solar developer, and Blueleaf Energy to build and operate six large-scale floating solar projects totaling 610.5MW. Laguna Lake will be home to the plants. The department has given solar energy operating contracts for 1.3 GW floating projects.
Philippines Solar Energy Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Evolution of Solar Power Market in the Philippines
4.3 Renewable Energy Mix, 2022
4.4 Solar Energy Installed Capacity and Forecast, in GW, till 2028
4.5 Recent Trends and Developments
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.7.1 Drivers
4.7.1.1 The Growing Demand for Solar Energy-Based Power Generation
4.7.1.2 Declining Photovoltaic System Prices
4.7.2 Restraints
4.7.2.1 The Country's Inefficient Electricity Grid Infrastructure
4.8 PESTLE Analysis
5. MARKET SEGMENTATION - BY TECHNOLOGY
5.1 Solar Photovoltaic (PV)
5.2 Concentrated Solar Photovoltaic (CSP)
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Market Share Analysis
6.4 Key Company Profiles
6.4.1 Solar Philippines Power Project Holdings
6.4.2 Solenergy Systems Inc.
6.4.3 Vena Energy
6.4.4 Solaric Corp.
6.4.5 Trina Solar Ltd.
6.4.6 AC Energy
6.4.7 Cleantech Global
6.4.8 Citicore Power Inc.
6.4.9 Aboitiz Power Corporation
6.4.10 Helios Solar Energy Corporation (HSEC)
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Off-Grid Electrification Through Renewable Energy Sources
Philippines Solar Energy Industry Segmentation
Solar energy is heat and radiant light from the Sun that can be harnessed with technologies such as solar power (used to generate electricity) and solar thermal energy (used for applications such as water heating). The Philippines Solar Energy Market is segmented by technology. The market is segmented by technology into solar photovoltaic (PV) and concentrated solar power (CSP). The market sizing and forecasts for each segment have been done based on installed capacity (GW).
Philippines Solar Energy Market Research FAQs
What is the current Philippines Solar Energy Market size?
The Philippines Solar Energy Market is projected to register a CAGR of greater than 25.20% during the forecast period (2024-2029)
Who are the key players in Philippines Solar Energy Market?
Solar Philippines Power Project Holdings, Solenergy Systems Inc., Vena Energy, Solaric Corp. and Trina Solar Ltd are the major companies operating in the Philippines Solar Energy Market.
What years does this Philippines Solar Energy Market cover?
The report covers the Philippines Solar Energy Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Philippines Solar Energy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Solar Power in the Philippines Industry Report
Statistics for the 2024 Philippines Solar Energy market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Philippines Solar Energy analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
