Solar Panel Adoption Grows in Southeast Asia Amid Energy Concerns

Homeowners and businesses in regions dependent on imported oil are increasingly installing rooftop solar panels. This shift is an effort to mitigate the impact of rising energy costs.

In March, the onset of a war in Iran disrupted energy markets significantly. Heidi Mendoza took proactive measures by having solar panels installed on her Marikina, Philippines home. She conducts financial literacy classes online and worried about potential electricity loss. Mendoza remarked, “I got scared that we might lose electricity.”

Ming Kuang Chai, an architect from Kuala Lumpur, Malaysia, added solar panels to his home last month. The conflict and his use of an electric car influenced his decision, aiming to manage living expenses more effectively. Adiana Julia plans to do the same for her parents’ house in Yogyakarta, Indonesia early next year, emphasizing the importance of reducing dependency on traditional power grids.

This trend is spreading across Southeast Asia. The region’s energy sector heavily relies on oil imported through the Strait of Hormuz, which has been closed during the conflict. While a preliminary U.S.-Iran agreement may signal the reopening of the strait, the war’s economic impact will have lasting effects.

Following U.S.-Israeli strikes on February 28, the Philippines declared a state of emergency. Oil prices soared, leading to potential rolling blackouts. Mendoza, 63, seized this as an opportunity to invest 390,000 Philippine pesos (around $6,500) in solar power for her house. “I wouldn’t be able to do my online work,” she stated, highlighting the necessity of an uninterrupted power supply.

This increased demand for solar power has benefited China, the largest producer of solar panels. In March, China sold 5.5 gigawatts of solar capacity to Southeast Asia, more than doubling the previous year’s sales according to Wood Mackenzie. Analyst Wan Afiq Naqiuddin noted this capacity could power 1.45 million homes annually.