The Philippines’ solar industry is already exporting to countries like the US reaching figures of US$41.5 million, up 47.3% last year.
Now, almost three years in the making, following petitioning by the Renewable Energy Board (NREB), the Philippines’ Energy Regulatory Commission (ERC) has finally approved an initial feed-in tariff rate for renewable energy.
The FiT for all solar installations will be US$0.23 per kWh, regardless of the size of the system or technology used.
An Internal Rate of Return (EIRR) of 16.44% in calculating for the FiTs has been adopted by the ERC which was allowed a higher EIRR of 17% to account for fuel risks.
The FiT is subject to review and digression every three years or when the installation target, as set by the Department of Energy, has been reached. The government is optimistic that this will encourage developers to invest at the initial stage.