Price wars currently stand as the biggest challenge facing solar installers in the Philippines, according to research by Manila-based nonprofit organisation New Energy Nexus (NEX) Philippines.

NEX Philippines first surveyed its network of rooftop solar installers in April to learn how the country’s oil and gas crisis was impacting businesses and recently conducted follow-up research to identify how solar adoption has since shifted.

The Philippines, which imports most of its oil from the Middle East, first declared an energy crisis in March following the start of the Strait of Hormuz crisis. It already had the costliest residential electricity prices in Southeast Asia at the time but prices have kept climbing since.

The start of the crisis brought increased interest in rooftop solar installations. Sheryl Estella, New Energy Skills Lead at NEX Philippines, told pv magazine that combined weekly installations among surveyed installers more than doubled after the energy emergency began, from around 30 systems a week to nearly 70.

While solar installers in the Philippines listed supply constraints as their leading concern in April, pricing wars and quality emerged as the leading concerns in September.

A briefing paper published by NEX Philippines explains that customer behaviour is changing, with buyers now arriving to installers more informed and ready to compare installers on brand, warranty and after-sales service, all while shopping for the lowest quote.

“Most installers convert a quarter or fewer of their inquiries,” the report says, adding that sales are now most likely to fall through either because customers are choosing the cheapest quote, or because customers cannot pay upfront.

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