SONA 2026: Sariling Kuryente must mean affordable rooftop solar for every filipino [Sayang Ang Araw]

Official Statement of the Sayang ang Araw, Gawing Mura ang Solar Campaign on the 2026 State of the Nation Address delivered by President Ferdinand Marcos Jr.

With electricity prices continuing to burden Filipino consumers, President Ferdinand Marcos Jr.’s call for the passage of the proposed Sariling Kuryente Act is an affirmation of the sentiments expressed by more than majority of Filipinos that scaling rooftop solar is a practical, affordable, and resilient energy solution. Making rooftop solar more accessible to Filipino households is an important step toward giving consumers greater control over their electricity costs.

However, legislation alone will not unlock the country’s rooftop solar potential. Despite strong public support for wider rooftop solar adoption—with a nationwide Pulse Asia survey finding that 9 out of 10 Filipinos believe the government should make rooftop solar more affordable—financial and policy barriers continue to prevent many Filipino households and micro, small, and medium enterprises (MSMEs) from investing in rooftop solar systems.

One of the most significant barriers is the 12 percent Value-Added Tax (VAT) imposed on the installation of rooftop solar systems. While the Renewable Energy Act of 2008 has provided fiscal incentives that have helped accelerate utility-scale renewable energy projects, many households, MSMEs, schools, institutions, and many non-VAT registered consumers continue to shoulder the full VAT cost of installing rooftop solar systems. The biggest obstacle to rooftop solar isn’t a lack of sunlight, but the extra cost borne by Filipinos who want to invest in clean energy.

Removing the 12% VAT on rooftop solar installations would directly reduce the upfront cost of adopting clean energy while making rooftop solar more accessible and affordable for ordinary Filipino households and small businesses. This is consistent with the administration’s broader tax relief agenda, which seeks to ease financial burdens on workers and support small businesses by providing greater economic relief. Extending tax relief to rooftop solar investments would allow Filipino consumers to make an investment that can permanently reduce electricity expenses while strengthening household and business resilience.

Our analysis shows that removing VAT on rooftop solar installations is also fiscally responsible. The policy is broadly fiscally neutral, with the government recovering approximately ₱1.01 in tax revenues for every ₱1.00 of VAT foregone through increased private investment, employment, and broader economic activity. Removing VAT can accelerate rooftop solar deployment and mobilize billions of pesos in private investment. It is not a tax giveaway, but rather an investment that pays consumers back through lower electricity bills, while generating jobs, investments and economic growth.

Hence, we strongly urge our lawmakers to consider the inclusion of VAT removal for rooftop solar installations in the proposed Sariling Kuryente Act. If the objective is to make Sariling Kuryente a reality for more Filipinos, the law must remove one of the biggest barriers preventing households and businesses from investing.

Reducing the upfront cost of rooftop solar installations, however, is only one part of creating an enabling environment for wider rooftop solar adoption. Expanding access to affordable financing, streamlining permitting and interconnection procedures across local government units and distribution utilities, strengthening the implementation of net metering, improving installer accreditation and quality assurance, and enhancing consumer protection will help create an enabling environment where more Filipino consumers can confidently invest in rooftop solar.

Local governments also have an important role to play in accelerating rooftop solar adoption. Through local ordinances, streamlined permitting processes, local energy planning, and targeted incentives, LGUs can help create a more enabling environment for rooftop solar deployment. Examples include real property tax incentives for rooftop solar installations as demonstrated by Makati City and Iloilo City. National programs such as the Local Government Support Fund (LGSF) can further enable local governments to implement renewable energy solutions.

We urge Congress to deliberate on the proposed Sariling Kuryente Act to translate the President’s vision into meaningful consumer action. While no publicly available version of the proposed measure has been released as of this writing, the legislation should prioritize making rooftop solar more accessible and affordable for Filipino consumers.

ABOUT THE CAMPAIGN
Sayang Ang Araw, Gawing Mura ang Solar is a public engagement and policy advocacy campaign, launched on the eve of Philippine Independence this year, that seeks to accelerate rooftop solar adoption in the Philippines by removing cost and regulatory barriers. It promotes rooftop solar as a practical pathway toward affordable, reliable, and resilient energy, while advancing energy independence for Filipino households, businesses, and communities.

The campaign is collectively led by the following organizations: Institute for Climate and Sustainable Cities (ICSC), 350 Pilipinas, New Energy Nexus Philippines, Philippine Solar and Storage Energy Alliance (PSSEA), Asia Engine for Next Zero (AENZ), Clean Energy Advocates Association of the Philippines, Inc. (CEAAPI), Foundation for a Sustainable Society, Inc. (FSSI), Mindanao Goes Solar Movement, Oxfam Pilipinas, Partnership of Philippine Support Service Agencies (PHILSSA), AktivAsia Philippines, Pinoy Aksyon, and World Wide Fund For Nature (WWF) Philippines.