Accelerating rooftop solar adoption could provide the Philippines with a long-term solution to fuel price volatility and energy security risks, according to Philippine Solar and Storage Energy Alliance (PSSEA) founder Tetchi Capellan.

Capellan, speaking at a roundtable last Sunday, emphasized that while recent measures aim to ease the impact of rising fuel prices, more durable solutions are needed to protect households from future shocks.

She pointed to the recent surge in fuel prices- from around PHP 60 per liter to PHP 95 per liter within weeks- as a clear example of the country’s vulnerability to global oil market disruptions.

While the government has implemented short-term responses such as a four-day workweek to conserve fuel, Capellan said these measures are temporary and must be complemented by long-term structural changes.

Capellan proposed accelerating investments in rooftop solar, positioning it as a sustainable alternative that can shield the country from the volatility of imported fuel.

A study cited during the discussion showed that the Philippines has up to 1.8 gigawatts of rooftop solar potential, with around 1.3 GW in Luzon, nearly 500 megawatts in the Visayas, and about 61 MW in Mindanao. Current installations remain below one gigawatt.

She noted that rooftop solar has become increasingly competitive, with costs ranging from as little as PHP 2.50 to PHP 5.30 per kilowatt-hour, compared to coal-fired power at PHP 3.80 to PHP 5.50 per kWh and diesel-fired generation reaching as high as PHP 15 to PHP 28 per kWh.

Capellan said expanding rooftop solar could also deliver significant economic benefits, including reducing the country’s reliance on imported coal and diesel and potentially saving up to USD 2.2 billion annually in import costs, along with USD 200 million in diesel subsidies each year.

She also contrasted rooftop solar with proposals to establish a strategic petroleum reserve, noting that while such a reserve may not only serve as a short-term buffer, it would require substantial upfront investment and ongoing costs. Initial estimates place the cost of a 30-million-barrel reserve at around USD 660 million, or PHP 37.2 billion, for the first year alone.

In contrast, Capellan said distributed solar capacity, which she described as a “solar reserve”, can provide long-term value by generating energy for decades with minimal ongoing costs.

She added that recent policy reforms, including improvements in net metering and streamlined permitting processes, have made rooftop solar more accessible to consumers. Financing options have also expanded, with solar-integrated mortgages and the entry of institutions such as Pag-IBIG Fund helping broaden adoption.

Capellan said rooftop solar has evolved beyond an environmental solution, describing it as a macroeconomic tool that can help stabilize the country’s energy system and reduce exposure to global fuel price swings.

As global oil supply remains exposed to geopolitical risks, can rooftop solar become the country’s most effective defense against future fuel shocks?

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