China is Supercharging a Rooftop Solar Boom in the Philippines

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In large part, that is because both sides stand to benefit from the current boom. Import-dependent Philippines gains access to low-cost renewable technology which is easy to deploy even in an island nation, while Chinese manufacturers can tap a fast-growing export market.

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“The Philippines has so much to gain by embracing solar: less pressure on retail electricity price rises, less imported gas and oil, and overall cheaper electricity for customers,” said veteran electricity analyst Dave Jones at energy think tank Ember. “Electricity prices are so high. With customers fearful that prices will rise further, this provides a firm impetus to act now.”

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Chinese manufacturers also want to move quickly to tap overseas markets, especially if that means profits for an industry that has been mired in losses for years. While the Philippines remains relatively small compared to China’s behemoth domestic market, rising demand here — alongside other major importers like Pakistan — is providing an important outlet for excess capacity.

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Other factors help. The Philippines has long been a key adopter of renewable power, ahead of many others in the Southeast Asian region, with a strong pipeline of wind and solar projects in development as it tries to keep up with expanding consumption. The country has also been active in encouraging foreign players to enter its clean-energy sector by allowing full foreign ownership and easing access to local financing.

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“The Philippines is a key renewable market in Southeast Asia, driven by a clear structural need,” said Geoffrey Jahnke, chief operating officer at Peak Energy, which develops clean energy projects in Asia. Demand for electricity continues to rise, and the country is still exposed to imported fuel price volatility and needs more “stable, domestically supplied energy,” he said.

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Rising electricity costs have provided a fresh impetus to clean up the grid, given most of that surge is directly linked to dependence on imported fossil fuels. Power prices in the Philippines have jumped at least 14% this year from last year, said Robert Liew, an analyst at consultancy Wood Mackenzie. The nation now has the costliest residential electricity price in Southeast Asia, and the second-highest commercial price, according to a May report published by Ember. 

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To try to cushion the shock from Persian Gulf disruption, the government began offering low interest loans of up to 500,000 pesos ($8,124) for residential clean energy. It has also fast-tracked more than 30 renewable projects.

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That means cheap Chinese solar panels are now a viable way for households to save money. Payback for a residential rooftop project can be as short as a little more than three years, down from four years in May 2025, according to Ember.

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As a result, the industry is booming, as seen in Davao’s crowded mall, with exports to the Philippines smashing records in March. Average weekly rooftop solar installations have risen 170% since the US and Israel began bombing Iran in late-February, according to New Energy Nexus. 

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The only catch is that with customer inquiries surging 582%, demand is running ahead of what the market can physically deliver, held back by supply chain shortages and limited numbers of installers.

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“The supply chain was not built to absorb a demand shock of this size,” New Energy Nexus said in an April report.

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For producers like Jinko and rival Trina Solar Co., it is still an opportunity that cannot be passed up.

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“The market is moving from buying panels as standalone components toward planning solar as part of a wider energy system,” Trina Solar, another Chinese manufacturer, said in response to Bloomberg queries. “We are confident in meeting this demand.”

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—With assistance from Ocean Hou, Ishika Mookerjee and Neil Jerome Morales.

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