DoST helps MSMEs adopt solar power through financing program

By Edg Adrian A. Eva, Reporter

DEPARTMENT of Science and Technology (DoST) is helping micro, small and medium enterprises (MSME) adopt solar energy systems through a financing program aimed at reducing electricity costs and improving business resilience against volatile power prices.

In Pangasinan alone, nine MSMEs have installed solar power systems through financial and technical support under the agency’s Small Enterprise Technology Upgrading Program (SETUP), the DoST’s flagship program for small businesses.

“Under this program, qualified enterprises may access financial and technical assistance for the acquisition of appropriate technologies, including renewable energy systems such as solar energy installations,” DoST Pangasinan Provincial Director Arnold C. Santos told BusinessWorld.

He said the assistance process begins with an assessment of an enterprise’s operations, energy consumption and business viability.

DoST technical personnel then conduct site evaluations and recommend technology interventions to improve productivity and efficiency.

Once approved under SETUP, MSMEs may access innovation fund assistance through a zero-interest, no-collateral financing payable over three years, letting firms adopt technologies without heavy upfront costs.

Eligible enterprises must have been operating for at least three years and belong to priority sectors such as crop and animal production and food processing.

Electricity remains among the biggest operating expenses for MSMEs, with the Philippines continuing to post some of the highest power rates in Southeast Asia, according to the Management Association of the Philippines.

Mr. Santos said solar energy offers MSMEs a more sustainable and cost-efficient alternative as businesses face rising grid electricity prices.

“By integrating solar energy systems into their operations, MSMEs can generate their own electricity during daytime operations, resulting in lower monthly power bills and more predictable energy costs,” he said in an e-mailed reply to questions.

“This allows businesses to redirect savings toward production expansion, workforce development, product improvement and other operational needs,” he added.

Mr. Santos said several firms that adopted solar systems have reported electricity savings ranging from 70% to 90%, depending on installation size and operational demand.

Among them is Rille Farm, a poultry farm that reduced its electricity expenses by 90% to P13,500, based on DoST data.

Mr. Santos also addressed safety concerns surrounding unauthorized or improperly installed solar systems, saying the agency works only with qualified providers that comply with national electrical and engineering standards.

Technical assessments are conducted before installation, while participating enterprises are guided in securing permits and complying with electrical safety requirements.

By year-end, DoST Ilocos Region aims to support more MSMEs seeking to adopt solar technologies and expand renewable energy interventions across more sectors over the next three years.