Philippines approves $0.23 per kWh FiT for solar installations

The Philippines’ Energy Regulatory Commission has approved a US$0.23 per kWh initial feed-in tariff rate for all solar installations.

This applies regardless of the size of the system or technology used.

Higher capacity factors for these plants are to be implemented into the scheme to ensure that only the more efficient plants will enjoy the FiT incentive.

The ERC will put into practice the NREB methodology for calculating the FITs taking into account, amongst others, the cost of constructing and operating the plants for each renewable energy technology, the generation output or capacity factors of these plants and the reasonable return on investment offered to the developers of these plants.

"The ERC's lowered FiTs will definitely cushion the impact of implementing the FiT incentive mechanism under the Renewable Energy Act on the electricity rates, while still being sufficient enough to attract new investments in renewable energy. This is win-win for all,” said ERC executive director Francis Saturnino Juan.

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.

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