Last week, one Philippines customer sent me a copy of the electricity bill. And, I must say, I was shocked.
The bill itself: 959 kWh of electricity used in one month, total charge ₱13,976.22 — that would be roughly 1,760 RMB (around $245 USD).
And lo and behold, it's not a factory or business bill. It's an ordinary residential household.
In China, the majority of households pay about 200 RMB or even less per month for electricity. This Filipino customer paid almost nine times that amount. That piqued my interest: is electricity really that expensive in the Philippines? As it turns out — yes, it is.
Based on Philippine Statistics Authority data, the average Filipino monthly salary is around ₱15,000, or around 1,900 RMB.
That's equivalent to this ₱13,976 electricity bill taking up nearly 90% of the average person's monthly take-home pay.
To most Filipino families, electricity is more than just a utility — it's one of their biggest monthly bills.
After taking a look inside the bill and observing how the local power network works, here are some of the top reasons:
Most of the Philippines' energy comes from coal, oil, and natural gas — and most of it has to be imported. When fuel prices globally increase, so does your electricity bill.
Unlike some countries (e.g., China), in which electricity is subsidized and regulated, the Philippines employs a market-based pricing scheme. That is, consumers pay the entire cost of generation, transmission, distribution, system losses, and taxes.
From the bill:
Generation charge: ₱7,406
Transmission: ₱1,062
Distribution (MERALCO): ₱2,632
Taxes: ₱1,471
Other charges and losses: ₱700+
Total rate? Approximately ₱14.24/kWh, or 1.83 RMB/kWh — 3 to 4 times higher than China.
The Philippines is made up of over 7,000 islands. Maintaining power lines across islands is tough and expensive. That adds to the cost too.
Whether you’re living in the Philippines or doing business there, these tips can really help cut down the bill:
✅ 1. Upgrade High-Power Appliances
Air Conditioner: Go for inverter models and keep the temperature at 26°C+
Refrigerator: Employ inverter-type, maintain seals tight, minimize frequent opening of doors
Water Heater: Adopt instant heaters or switch to solar water heating
✅ 2. Utilize Solar Power
The Philippines enjoys abundant sunshine. Even a minimal off-grid solar + battery system (approximately 1kW) can save a great deal in the long run — frequently pays for itself within 3–5 years.
✅ 3. Steer Clear of Peak Usage Hours
Electricity is required most during 5 PM and 9 PM. Try to use high-power appliances during the morning or late night to reduce loads and possible extra charges.
✅ 4. Use LEDs Instead of Lighting
LED bulbs use up to 90% less power compared to standard incandescent bulbs. It's a simple, quick win.
✅ 5. Eliminate Standby Power
TVs, routers, microwaves, and washing machines still consume power when on standby. Use power strips with switches or timers to shut things off entirely at night.
Final Thoughts
That single electricity bill my customer sent me wasn't only shocking — it was enlightening.
The Philippines' high cost of electricity is not just a one-person problem. It is tied into bigger issues: energy policy, grid infrastructure, reliance on imported fuel, and lack of domestic generation options.
But here's the good news — for individuals like us who are in the solar and energy storage industry, this is an even huge chance. Affordable, clean energy isn't only wonderful for the planet — it's vital to real people who desire to improve their existence.
If you, or someone you know, live in the Philippines, or are running a business there, don't hesitate to pass this post on. Some smart tweaks will pay a lot of money in the long term.
