Philippines overtakes Pakistan as China’s No. 2 solar export market

China exported over 3,000 MWs of solar panel in March and April alone.

The Philippines has become China’s second-largest export market for solar panels so far in 2026, overtaking Pakistan, according to an Ember report.

China exported more than 3,000 megawatts (MW) of solar panels to the Philippines in March and April 2026 alone, the report said.

The surge comes as rooftop solar payback periods in the Philippines shortened across residential, commercial, and industrial segments.

Residential rooftop solar payback fell to 3.1 years in May 2026 from four years a year earlier. Commercial payback also declined from three years to 2.3 years, whilst industrial systems fell from 3.9 years to 3.1 years.

Ember linked the shift to higher retail electricity prices and lower installation costs.

Meralco retail prices increased 17% for residential users, 18% for commercial users, and 14% for industrial users over the past year, whilst solar installation costs declined by about 10%.

The Philippines now has the highest residential electricity prices in Southeast Asia, the second-highest commercial prices, and the third-highest industrial prices, according to the report.

Rooftop solar capacity in the Philippines increased to about 1,300 MW in early 2026 from 721 MW in early 2025.

Ember said data from the Independent Electricity Market Operator of the Philippines showed lower grid generation at midday, when solar generation peaks.

The Philippines imported 5,068 MW of solar panel capacity in 2025, more than five times the 800 MW of grid-connected utility-scale solar installed during the year.

Ember estimated that rooftop solar paired with battery storage could scale to 3,500 MW of solar capacity and 4,500 megawatt-hours of storage within 24 months, equivalent to the size of the Meralco Terra Solar project.

The report said recent policy changes included shorter approval timelines for net metering and electrical permits, the introduction of multi-site and aggregate net metering, and updated Retail Competition and Open Access regulations.

The regulations will allow customers with demand above 100 kilowatts to enter solar power purchase agreements from June 2026.