Policy Memo: Provider accreditation can drive rooftop solar adoption in the Philippines

To: Secretary Raphael P.M. Lotilla, DOE (The Philippines) 

From: Mary Grace V. Gabis, Executive Assistant III, DOE (The Philippines) 

 

Overview 

Due to its prime location near the equator and abundant sunlight, the Philippines has a massive potential for rooftop solar at 91 GW (Center for Energy, Ecology, and Development, 2024). This immense potential, along with the scalability and ease of deployment of rooftop solar, has led to the implementation of several policies and initiatives to increase its adoption. These include the Net-Metering Program, which allowed consu 

mers to generate electricity from renewable energy (RE) sources up to 100 kW and sell their excess to the grid, and the Expanded Rooftop Solar Program, which defined new and innovative business models for rooftop solar (DOE, 2023). Meanwhile, green energy advocates launched the “10-million Solar Rooftops Challenge” early this year to increase solar panel installation nationwide (CEED, 2024).  

Problem Statement 

Despite a government policy push and strong civic support, only 162 MW of rooftop solar capacity has been deployed in the country. This comprises 116 MW net-metering (Bellini, 2024) and 46 MW behind-the-meter facilities, accounting for only 10% of the existing solar capacity (DOE, 2024). The reasons for the substantial gap between the potential and deployed rooftop solar capacity include the high upfront cost and lack of access to financing, the absence of a provider accreditation program, the tedious local permitting system, and the resistance of some distribution utilities (DUs) on rooftop solar (Ahmed, 2018). Among these challenges, only the accreditation program for rooftop solar providers (RSPs) catering to residential, commercial, and industrial consumers has received no policy attention or action from the DOE. Thus, this policy memo will emphasize the importance of accreditation in catalyzing rooftop solar use and provide recommendations for crafting and implementing an RSP accreditation program in the Philippines. 

Importance of Rooftop Solar Provider Accreditation 

A rooftop solar provider is an entity engaged in the business of installing, operating, and maintaining rooftop solar systems (RSS) (DOE, 2023). In this policy memo, accreditation shall be defined as the process by which an authorized agency such as DOE recognizes an entity as a qualified RSP after meeting specific standards and requirements. Accrediting RSPs can drive rooftop solar deployment in four major ways: 

1. Accreditation ensures the quality and safety of rooftop solar systems, boosting consumer confidence and buy-in. 

2. Accredited RSPs offer after-sales services for the repair, maintenance, or replacement of rooftop solar systems, guaranteeing customers the reliability and longevity of their investments. This leads to greater customer satisfaction and commendation of the technology. 

3. Accredited RSPs help promote awareness and disseminate the right information, raising consumer interest, knowledge, and adoption of rooftop solar. 

4. Accreditation enables efficient tracking, accounting, and reporting of rooftop solar data information. Accurate commercial and technical data on rooftop solar is essential for DOE’s power system planning and future policy development. Making the list of accredited RSPs publicly available also provides consumers with more options for RSPs, thereby increasing industry competition and innovation. 

Moreover, rooftop solar provides positive co-benefits to the environment and the economy. Increasing its adoption is estimated to reduce carbon dioxide emissions by 3.28 million metric tonnes and generate cost savings of PhP43 billion (USD 736 million) annually. 

Recommendation 

Therefore, it is recommended that the DOE issue a policy that establishes an RSP accreditation program in the Philippines. This policy should be formulated in consultation with RSPs, other government agencies (particularly the Department of Trade and Industry), consumers, and other stakeholders before promulgation. The proposed key contents of the policy are as follows: 

1. Accreditation Requirements and Responsibilities 

• Compliance with minimum technical and safety standards 

• Acquisition of all business- and operation-related permits from national and local government agencies 

• Training certifications of installers, operators, and maintenance officers 

• Information disclosure of existing, ongoing, and upcoming RSS installations, including their capacity, location, electricity generation, and cost. 

2. Procedure and timeline of accreditation – DOE shall assess all applications for accreditation using its Energy Virtual One-Stop Shop digital platform to ensure prompt processing and approval. Accreditation must be renewed periodically, such as every year or two. 

3. Incentives and perks – Existing incentives outlined in the Philippines’ RE Act of 2008, such as income tax holidays, duty-free importation of machinery, equipment, and materials, and special tax rates, shall be extended to accredited RSPs. This is highly recommended to encourage more RSPs to accredit and reduce the market cost of RSS. In addition, all government agencies shall be directed to engage only with accredited RSPs for their facilities and infrastructure projects. The DOE shall also publish the list of accredited RSPs on its website. 

Additional budgetary requirements to implement the program can be sourced from the DOE’s General Appropriations or the RE Trust Fund. The DOE can also tap and collaborate with other countries with established RSP accreditation systems, such as Australia and the United Kingdom, to gain further insights, lessons learned, and best practices.  

 

^Footnotes

^{Ahmed, S. J. (2018). Unlocking Rooftop Solar in the Philippines Energy-Supply Security and Lower Electricity Costs. Retrieved from https://ieefa.org/wp-content/uploads/2018/08/IEEFA_Unlocking-Rooftop-Solar-in-the-Philippines_August-2018.pdf} 

^{Bellini, E. (2024). Net-metering scheme tops 116 MW in Philippines. pv magazine. Retrieved from https://www.pv-magazine.com/2024/07/01/net-metering-scheme-tops-116-mw-in-philippines/} 

^{Center for Energy, Ecology, and Development, . (2024). Ambition for 10 million solar rooftops across PH launched as call for cheaper, more reliable electricity [Press release]. Retrieved from https://ceedphilippines.com/ambition-for-10-million-solar-rooftops-across-ph-launched-as-call-for-cheaper-more-reliable-electricity/#:~:text=%E2%80%9CThe%20Philippines%20has%20an%20abundant,fossil%20fuel%2Dbased%20power%20generation.} 

^{Department of Energy. (2023). Department Circular No. 2023-12-0035 Prescribing the Policy and General Framework on the Expanded Roof-Mounted Solar Program in the Philippines. (Department Circular No. 2023-12-0035 ).  Retrieved from https://doe.gov.ph/sites/default/files/pdf/issuances/DC2023-12-0035.pdf} 

^{Department of Energy. (2024). List of Existing Power Plants (Grid-Connected) as of May 2024. Retrieved from: https://doe.gov.ph/sites/default/files/pdf/electric_power/04_LVM%20Grid%20Summary_31_may_2024.pdf} 

^{PVTRIN Installer Certification. (2011). Review of current PV installer certification schemes in Europe. Retrieved from http://pvtrin.eu/assets/media/PDF/Publications/Project%20Reports/45.%20CERTIFICATION%20SCHEMES%20IN%20EU.pdf} 

^{Renewable Energy Act. (2008).  Retrieved from https://www.officialgazette.gov.ph/2008/12/16/republic-act-no-9513/}