Oil prices continue to hit harder on the economy and consumers since the rise of the Ukraine-Russia conflict, world oil crisis, tight supply chains and weakening of Philippine peso against dollar. Comparing diesel prices last January and today, it has almost doubled its price which is at 97% increase. The major sources of electricity in the Philippines come from coal and oil-powered plants. This proves how electricity rates increase as the price of oil.
The Manila Electric Company (Meralco) rate went up by P0. 3982 per kilowatt-hour (kWh) to P10. 4612 per kWh on June. The country’s heavy reliance on imported fossil fuels and non-competitive market structures are the key factors affecting the sudden inflation of electricity rate. A small business uses an average of 25,000 kWh of electricity yearly. It costs PHP 261,530 to settle its electricity bill annually. It is going to continue changing as the generation cost for electricity is projected to increase due to inflation.
Are these ranges of electricity bills still worth it? Inflation is likely to settle within the 5.7% to 6.5% range in June. Investment in solar PV systems is costly, yet very worth it — especially now that the price of domestic oil is volatile, making the upward cost of electricity.
Going solar is affordable and cheap. The average price of 300 kWh consumption in a household will only cost P1 a month. A 10KW on-grid solar power system is enough to power a small business. This system could cost Php840,000. Annual savings of this 10KW solar power system ranges from PHP115,000 to PHP 145,000. This projects to return your investment in 4 to 5 years.
At Solenergy Systems Inc., we revolutionize the renewable energy industry in the Philippines. Creating energy solutions across the nation and aiming to sustain a brighter future by building dependable, affordable and world-class energy systems are what keep us moving forward. Customizing energy solutions that are focused on leveraging solar energy to power commercial industries is one of our best services. We aim to provide services that offer power savings through a fully integrated, on-site solution.