Best Policy Practices

Best Policy Practices
Solar Home System Distribution Project
Philippines
The Philippines Government is leading by
example and helping to install solar heater
systems in rural areas. This is also development
cooperation.
Name of the programme: Solar Home Systems Distribution Project
Lead institution: Philippine Government, Philippine National Oil Co. (PNOC)
Sponsoring organisation: The Government of the Netherlands
Other institutions and stakeholders involved: Department of Energy, the
National Electrification Administration (NEA) and Shell Solar Philippines Corp.
(SPRC), the Philippine Veterans Bank and the Sta. Catalina Rural Bank
Timeframe: 2002-2007 | Status: Ongoing
Policy and main objectives: The Government is promoting the
adoption of solar home systems (SHS) throughout the country
by “leading by example” and installing over 15,000 of them
in rural areas. To make the package affordable to rural folks,
a community-based credit program was set up to finance the
costs through cooperative initiatives. A unit costs P37,000
(USD 667), but because of subsidies granted by the Government
(thanks to the Dutch sponsorship) and provincial
governments, people need not spend more than P15,000 for
each. Furthermore, loans that are payable in three years are
also available from the partner rural banks in the province. The
loan (through the cooperative initiatives) would only cover a
monthly amortization of between P420 to P440.
Results achieved: Around 2000 SHS were installed by the end
of 2003, with a further 100 to 200 systems being installed
every month. Because of the project, the economy is strengthened,
while air, water and soil pollution are reduced. Literacy
and quality of life are improved, and better lighting makes
reading and working easier. Health problems are reduced as
people inhale less toxic fumes from kerosene lamps. And there
is better access to information from TV and radio, too.
Link: www.partnerships.nl/article-1026.3538.html
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