Commercial electricity in the Philippines costs ₱14–18 per kWh — 20-30% more than residential rates. That makes the ROI on commercial solar even more compelling than for homeowners.
| Residential | Commercial / SME | |
|---|---|---|
| Monthly bill range | ₱3,000–₱20,000 | ₱20,000–₱500,000+ |
| Rate per kWh | ₱11–14 | ₱14–18 |
| System size | 2–16 kW | 20–500 kW |
| Payback period | 3–5 years | 2–4 years |
| Net metering cap | Up to 100 kW | Up to 100 kW (ERC cap) |
| Deductible expense? | No | Yes — capital asset |
| Without Solar | With 50kW Solar | |
|---|---|---|
| Monthly electricity bill | ₱80,000 | ₱12,000–₱20,000 |
| Monthly savings | — | ₱60,000–₱68,000 |
| Annual savings | — | ₱720,000–₱816,000 |
| System cost (50kW) | — | ₱1,800,000–₱2,200,000 |
| Payback period | — | 2.5–3 years |
Under the Philippine Renewable Energy Act (RA 9513), businesses that invest in RE systems are entitled to:
Practical advice: For SMEs not registered as RE developers, solar equipment is still a deductible capital expense. Consult your accountant on Section 34(F) of the NIRC.
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Engr. Jason Morales — Founder, SolarEnergyPH