How Coal Tax will Affect the Cost of Power in the Philippines

How Coal Tax will Affect the Cost of Power in the Philippines

A friend came to me saying that the coal tax is going to increase the cost of power in the Philippines, I said for cheaper energy its better we kick the coal habit and take a look at the pro oligarch laws that limit RE. There are 450 government agency signatures to put up a solar plant and 3 years permitting for solar farms and for home owners and business owners; arbitrary limitation of how many solar panels or how large of a solar system a Philippine factory or a school can put on their roof and utility compliance hurdles from local and national government for a home setup.


We are after lower cost of energy; it’s the prime reason why people hire us to install solar panels. Half to total electric cost reduction is our goal and some of our clients no longer have an electric bill.


Saying No to coal however is not easy. For years the Philippines was addicted to “cheap power” from coal generation and little after thought was given on burning millions of tons of coal with no end. In 2008, about 24% of the energy needs came from coal plants and we are now edging at 50% coal power. This addiction has caused massive poisoning of our lands, air, and even ground water for host communities, not to mention Global warming contribution.


Fossil Fuels

While other forms of polluting fuels are taxed by the government, Diesel and Gasoline which is mainly paid by working class Filipinos at six pesos per liter, Coal the million ton dinosaur was only taxed a mere ten centavos per kilo at a fixed rate set in 1977 benefiting the privileged few who own a coal plant or mine.


Now the Philippine Senate voted to tax it to a more defensible P300 per ton by 2020. Why we hate coal so much, there is no man made structure that is more efficient in polluting than a colossal coal power plant.


While other countries have found out that burning coal will spell ruin to their citizens’ health, the Philippines Energy plan is to use more coal generation like an unrepentant drug addict with 30 more coal plants planned in the near future.


With the 80% drop in solar panel prices the past 5 years, Coal is no longer the “cheapest” form of energy and they may be stranded assets before they even operate.


Coal generation like all fossil fuel plants has pass through cost provisions that guarantee profits for coal plant owners that Juan De La Cruz would either pay through pocket book or medical bills for affected communities.


So next year, yes power rates are going to go up. Perhaps the wise men of energy policy can just give renewables a chance by removing red tape roadblocks as increasing energy supply decreases prices.


Nonetheless, we realize that many of us are not sheep. Solaric is about empowering people to say No to coal and give economically viable options, solar on rooftops that produce power less than P2 a kWh.


Solar Panel Roof Installation

If you want to save more energy with less money or simply a fan of clean environment, put a solar system on your roof. We give you a choice of paying for an electric bill or owning your own mini solar power plant.


For more information, go to this page. You may also email us through or call us at 5040092 or 09178603141 (Globe).


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