Arya News - The country imports about 98 per cent of its total crude oil from the Middle East, while the remaining 2 per cent comes from Malaysia and Brunei. Rooftop solar capacity in the Philippines may have nearly doubled over the year to April 2026, according to an analysis by energy think-tank Ember.
MANILA – On sunny days, Ateneo de Manila University assistant professor Joben Ilagan plugs his family’s new electric vehicle into their home in Pasig, Metro Manila, and charges it using power generated by solar panels on the roof.
The family installed the panels in 2023, after electricity bills surged while they were stuck at home during the Covid-19 pandemic. They had also spent about two years studying electric vehicles, but were in no rush to replace their two ageing but reliable petrol-powered cars.
Then the Iran war sent fuel prices soaring.
“That was the trigger point,” Ilagan told The Straits Times.
His son Joe, who also teaches at Ateneo, said the family decided to act while car dealers were still offering discounts and before the conflict pushed vehicle prices higher. They bought an electric BYD eMax 7 for close to 1.4 million pesos (S$29,230), below the list price of 1.498 million pesos.
As the family often works from home, it can charge the car during daylight hours.
“For the most part, it’s (electricity) practically free,” said Joben Ilagan.
The Ilagans’ experience reflects how a war thousands of kilometres away is accelerating clean-energy decisions in one of Asia’s most energy-vulnerable economies.
The conflict has helped accelerate decisions to invest in solar power and electric vehicles, as volatile fuel and electricity prices make imported fossil fuels feel increasingly costly.
The Philippines imports about 98 per cent of its total crude oil from the Middle East, while the remaining 2 per cent comes from Malaysia and Brunei.
Rooftop solar capacity in the Philippines may have nearly doubled over the year to April 2026, according to an analysis by energy think-tank Ember.
It estimated that about 600 megawatts (MW) of capacity was added over the period, bringing the country’s rooftop solar installations to roughly 1,300MW.
China also exported more than 3,000MW of solar panels to the Philippines in March and April, making the country China’s second-largest solar panel export market in 2026, behind only the Netherlands.
“This implies a large inventory build-up that will translate into future installations,” Ember said.
The economics have become difficult to ignore. Residential electricity prices in May were 17 per cent higher than a year earlier, shortening the estimated payback period for a home solar system from four years to just 3.1 years, Ember said.
For journalism student Chris Josef de Jesus’ family in Cavite province, south of Manila, the war fast-tracked plans to install solar panels on a newly constructed home.
The family had already considered investing in rooftop solar, but became more determined when their monthly electricity bill rose from between 4,000 pesos and 6,000 pesos to about 10,000 pesos during the height of the Iran war. The cost of cooking gas also nearly doubled, while diesel prices climbed to as much as 85 pesos a litre.
De Jesus contacted around 15 installers before the family decided to buy the equipment itself and hire an electrical engineer. The system cost about 575,000 pesos, compared with package quotations of between 750,000 pesos and one million pesos.
Now powered by solar, the family expects its electricity bill to fall to around 3,600 pesos, yielding monthly savings of about 6,400 pesos. De Jesus expects the investment to pay for itself within three to four years.
EV sales power ahead
A similar shift is taking place on Philippine roads.
Electric vehicle sales reached 24,356 units in the first five months of 2026, more than double the 10,431 units sold during the same period in 2025, according to the Chamber of Automotive Manufacturers of the Philippines and the Truck Manufacturers Association.
This came even as overall vehicle sales fell from 190,429 units to 167,324. Electrified vehicles therefore increased their share of the market from about 5.5 per cent to 14.6 per cent, based on calculations by ST.
At two MG and GAC showrooms in the northern Manila suburb of Valenzuela, monthly sales rose from between two and five vehicles in January to 24 in May and 28 in June, said Andre Douglas Tan, president of dealer ADOT Motors Inc.
Before the war, his staff often had to approach potential buyers online. The branches now receive one or two unsolicited walk-in customers daily.
Tan said buyers increasingly raise the cost of filling their tanks, with some reporting that weekly fuel spending had doubled.
Rising costs have also made consumers more willing to switch from established Japanese brands to cheaper Chinese-made electric and hybrid models.
BYD Cars Philippines managing director Bob Palanca said rising fuel prices have consistently driven more Filipinos to inquire about electric vehicles, with many asking how much they could save on operating costs and whether EVs could shield them from future oil-price shocks.
“People may initially walk into our showroom because of rising fuel prices, but what ultimately convinces them is the overall ownership experience,” he told ST.
The shift is notable in a country where distrust of China remains high because of Beijing’s expansive claims in the South China Sea, which overlaps with the Philippines’ exclusive economic zone.
Tan said many buyers who would previously have dismissed Chinese brands outright are now willing to consider them after comparing prices, range and long-term fuel savings.
“Coming into the auto industry, it was very tough for Chinese vehicles to be accepted because of the Chinese stigma. But now, during the ongoing Iran war, acceptance has been super high,” Tan said.
Palanca told ST the profile of buyers had also broadened beyond early adopters, with families, young professionals, entrepreneurs and even first-time buyers increasingly considering electrified vehicles because of lower operating costs and improving charging infrastructure.
Ilagan said his family had also carefully researched Chinese manufacturers before settling on a BYD model, concluding that the technology and battery systems had become competitive with more established global brands.
Rico Severino, founder and president of the Philippine Electric Vehicle Community, said interest in EVs had risen “tremendously” since the Iran conflict began. His group has grown to nearly 65,000 members since 2022.
A fully electric car costs under two pesos per kilometre to operate, compared with roughly five to six pesos for a petrol-powered vehicle, he said.
“The driver for buying an electric vehicle is not more for the environment. It’s more for the savings,” he said.
Palanca said customers were increasingly evaluating the total cost of ownership rather than simply the purchase price, as lower fuel and maintenance costs helped offset the higher upfront investment.
High up-front costs
But the transition remains largely confined to households that can afford the initial investment.
While more electrified models are entering the market, industry players say reducing upfront costs and expanding charging infrastructure remain critical if EVs are to become accessible to middle-income Filipinos.
The Ilagans spent about 280,000 pesos on their solar system while electric and hybrid models commonly cost upwards of 1.4 million pesos, hundreds of thousands of pesos more than many entry-level petrol-powered vehicles, which can cost less than one million pesos.
Apartment and condominium residents might also have difficulty installing EV chargers, while motorists travelling outside major cities still face limited charging options.
Solar users, meanwhile, contend with expensive battery storage and complex requirements for selling excess electricity back to the grid.
Severino said the government must simplify local permit processes, expand charging access and help bring vehicle prices closer to those of conventional cars.
The Marcos administration has already rolled out a series of incentives aimed at accelerating the transition. Under the Electric Vehicle Industry Development Act, fully electric vehicles remain exempt from excise taxes and number-coding restrictions in Metro Manila, while import tariffs on plug-in hybrids have also been suspended.
The government has also expanded incentives for renewable energy projects and has been pushing households to adopt rooftop solar, although industry players say cumbersome permit procedures and high upfront costs continue to limit wider adoption.
Even so, several of those interviewed believe the Iran war has already changed how many Filipinos think about energy.
“Consumer behaviour will slowly change now. Everyone’s starting to install their wall chargers at home. Everyone’s starting to put up solar panels at home,” said Tan.
“I think they know that they can actually have zero expense when they put up a solar panel and then just decide to charge at home.”