The Philippine Solar and Storage Energy Alliance (PSSEA) is calling on the government to establish a dedicated incentive framework for micro- and small-scale solar installers to lower costs and sideline the growing “informal” market of non-compliant providers.

In a statement on Wednesday, May 13, the industry group argued that a value-added tax-exempt (VAT) regime is essential to making rooftop solar systems more affordable for Filipino homeowners.

The PSSEA noted that legitimate, and tax-compliant installers currently struggle to compete with entities that evade tax obligations and fail to provide official documentation.

By strictly implementing a zero percent VAT incentive—a provision already outlined in the Renewable Energy Act—the group believes the government can level the playing field and ensure consumer safety.

The push for fiscal intervention comes as the industry seeks to democratize clean energy access. Removing the VAT burden would allow professional developers to offer pricing competitive with the informal sector, which often circumvents regulatory standards to undercut the market.

According to the PSSEA, removing these financial barriers at the installer level is a vital step in accelerating the nation’s transition toward renewable energy and building a more inclusive market.

Concerns over the rise of unregulated solar setups are also being echoed by the country’s largest power distributor.

Manila Electric Co. (Meralco), recently raised the potential risks that informal installations pose to the national grid’s reliability.

Ronnie Aperocho, Meralco executive vice president and chief operating officer, said that while the utility supports the shift to renewable sources, residential integration must be handled responsibly.

Meralco has already moved into the space through its subsidiary, MSpectrum, which provides sustainable energy solutions to homes and businesses.

Aperocho said that the company remains committed to promoting eco-friendly technology while ensuring that such transitions do not compromise the safety of the distribution network.

The technical risks of bypassing authorized installers were further underscored by the Institute of Integrated Electrical Engineers of the Philippines.

The IIEE warned this week that non-compliant systems could lead to fire hazards, electrocution, and equipment failure. Improperly installed panels also risk “back-feeding” into the grid, which creates unstable conditions for the broader power infrastructure.

The institute stressed that the design, testing, and maintenance of rooftop solar systems must be performed exclusively by licensed electrical practitioners to prevent life-threatening accidents. (Gabriell Christel Galang)