The Asian Photovoltaic Industry Association is pushing the government to replace diesel plants in remote off-grid areas with solar and battery systems, saying the move will lower electricity bills and ease a fast-growing subsidy burden on consumers and the national budget.
At present, grid-connected households pay a P0.3397 per kWh universal charge to keep power affordable in far-flung communities. This fund has ballooned from P7 billion in 2020 to P30.77 billion for 2026, with a P44.2 billion request pending for 2027. Power costs in these islands average P18 per kWh — and can hit P62 per kWh in the most isolated spots — driven largely by expensive and volatile fuel shipments.
APVIA says solar-battery systems cut costs by roughly 20 percent, replace fluctuating fuel bills with fixed pricing, and reduce exposure to rising oil prices. The group backs the Department of Energy’s 2027 off-grid renewable auction, which could eventually halve the universal charge while boosting local economies, businesses, and public services in remote areas.
