Spearheading the charge towards sustainability and climate change action, Makati City, under the leadership of Mayor Abby Binay, has passed a revolutionary ordinance giving tax exemptions and other benefits to businesses and homeowners who have installed solar energy systems in their properties.

Binay said the city council had earlier passed on second reading City Ordinance No. 2024-221 or the Solar Energy Systems Ordinance of Makati City.

The ordinance sets rules for Accessory Solar Energy Systems (ASES), including roof-mounted, wall-mounted, window-mounted, and ground-mounted types.

“The ordinance will be part of Makati’s long-term vision to balance economic growth and environmental health. It aims to promote the use of solar energy systems in commercial and residential properties, which is expected to enhance energy efficiency, protect the environment, and lower energy costs for Makatizens,” Binay said.

Under the ordinance, property owners who use solar energy in their properties can enjoy benefits including the exemption from paying real property tax (RPT) and simpler requirements for obtaining a building permit.

“We believe that the use of solar energy systems is a long-term commitment that supports the city’s advocacy to reduce greenhouse gas (GHG) emissions,” Mayor Binay said.

She explained ASES shall not be considered in determining the floor area ratio (FAR) restrictions or a property's maximum building height restrictions.

ASES constructed prior to the effectivity date of the ordinance shall also be entitled to RPT exemption and excluded from the determination of FAR restrictions or the maximum height restrictions of a property, as the case may be.

"Additionally, ASES constructed prior to the effectivity date of the ordinance shall not be required to meet its terms and conditions. Routine maintenance or like-kind replacements shall not require a permit. However, any physical modification to an existing ASES that materially alters it shall require approval under the ordinance," the city government said.

"All ASES will require an electrical permit and must comply with all the applicable provisions of P.D. 1096, otherwise known as the National Building Code of the Philippines, and other existing laws, rules, and regulations," it added.

The ordinance further allows applicants for an electrical permit for ASES to submit certifications issued by licensed professional engineers in lieu of the original as-built plans as well as detailed architectural and engineering plans containing the designs for the ASES. 

SDG 7

Bolstering her stance on proactive climate change action and sustainability, the mayor emphasized the city's commitment to Sustainable Development Goal (SDG) 7, which is to provide affordable, reliable, and modern energy for all by 2030.

She added that these systems will benefit Makatizens, especially during summer months when energy supply in the metropolis is low. 

"Beyond this new initiative, Makati continues to drive sustainability. Notably, the solar panels installed in Makati public schools since last year remain fully operational," Binay stressed.

"With the Solar Energy Systems Ordinance, Makati City will continue to reaffirm its leadership in sustainable urban development and its commitment to building a resilient, future-ready city for its residents," she added.