PH Renewable Energy Act: Incentivizing Solar Energy Use for Filipinos
Metro Manila, Philippines - The Philippines has recognized the impact of its dependence on dirty sources of electricity and its price fluctuations. Being situated near the equator with up to 12 hours of sunlight per day, it makes sense to get a hold of these advantages for the benefit of the Filipino people. This is why the Renewable Energy Act (RE Act), a pioneering legislation as the first renewable energy law in Southeast Asia, was passed back in December of 2008.
We are very lucky to be one of the few Asian countries that have a law for incentivizing the use of renewable energy. But with the country’s increasing energy demand and the National Renewable Energy Board (NREB) stating that the renewable energy share in the country hit a new low of 21% in 2019 (it was 35% of the total power mix when the law was enacted), what exactly are the goals of the RE Act?
Accelerate Exploration and Development of Renewable Energy Sources
Lessening dependence on dirty energy sources helps the country minimize the impact of oil price fluctuation in the global market. With the decrease to 21% energy share, NREB recommends 20,000 MW of renewable energy, (of which 15,000 MW is solar) be built within the next decade to get back to 35%. Solar now has the lowest levelized cost of electricity globally and has the flexibility in terms of size and location.
Increase Renewable Energy Utilization
With fiscal incentives like duty-free importation of equipment, reduced government share, and income tax holiday and low income tax rate, the RE Act aims to promote efficient and cost-effective commercial application. It also offers non-fiscal incentives like Feed-in-Tariff (FIT), net metering, and the Green Energy Option Program.
Effectively Prevent or Reduce Harmful Emissions
In line with the country’s goals of economic growth and development, the RE Act looks to balance this with the protection of health and the environment. Renewable energy sources inherently cannot run out and have minimal impact to the environment unlike sourcing fossil fuels. This helps mitigate the effects of greenhouse gases and, in turn, climate change.
Establishing Necessary Infrastructure and Mechanisms
And to properly carry out the previous policies specified in the RE Act, it also aims to institutionalize the development of both national and local capabilities in harnessing renewable energy.
Let us help you take full advantage of both our tropical sun and the RE Act of 2008. Magsolar na tayo!
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