Understanding Your Solar Feasibility Report: A Homeowner's Guide (PH)

After the solar company’s engineers have visited your property, measured your roof, and analyzed your electrical system, the moment of truth arrives in your inbox: the Solar Feasibility Report. This document, often called a solar proposal, is the culmination of that initial assessment. It’s your personalized roadmap to energy independence, detailing the technical specifications, financial projections, and the potential of solar power for your Filipino home.

However, these reports can be dense, filled with technical jargon, financial acronyms, and performance charts that can feel overwhelming. How do you cut through the complexity to understand if the proposed system is right for you? How do you compare offers from different installers on an equal footing?

This guide is designed to empower you. We will break down each section of a typical Philippine solar feasibility report, translating the technical details into plain language. By the end, you'll be able to read your proposal with confidence, ask installers the right questions, and make a truly informed decision about your renewable energy future.

Section 1: The Foundation - Your Energy Consumption Profile

The very first part of any credible solar proposal should focus on you. Specifically, it should detail your current electricity consumption. A professional installer bases their entire design on your unique energy usage, which they determine primarily from your past Meralco or local electric cooperative bills.

What to Look For:

• Average Monthly Consumption (in kWh): This is the most critical number, usually presented as a monthly average over the last 6 to 12 months. This figure—kilowatt-hours (kWh)—represents the total amount of electricity you use. It's the primary data point used for properly sizing your solar system. A system that's too small won't meet your savings goals, while a system that's grossly oversized can be an inefficient use of your investment, especially under the current net-metering rules.
• Load Profile: Some advanced reports might include a chart showing your "load profile"—a graph of your electricity usage throughout the day. This is particularly important in the Philippines. Do you run air conditioners and appliances mostly during the sunny daylight hours? Or is your consumption heavier in the evenings? This profile helps determine if a standard grid-tied system is sufficient or if a hybrid system with battery storage would be more beneficial to offset your evening usage.
• Current Electricity Rate (PHP/kWh): The report should state the average rate you are currently paying per kilowatt-hour. This is not just a single number; it's a blend of generation, transmission, distribution, and other charges. This rate is the benchmark against which all your future solar savings will be measured.

Why It Matters: This section is the diagnostic report of your home's energy habits. If the consumption data looks inaccurate, every subsequent calculation in the proposal—from system size to financial savings—will be flawed. Always double-check these numbers against your own bills to ensure the proposal is built on a solid foundation.

Section 2: The Core Proposal - Your Custom Solar PV System

This is the heart of the report, where the installer lays out the technical solution designed for your home. It details the size of the system, the specific equipment to be used, and its expected performance.

System Size (Kilowatt-peak or kWp)

You will see a number like "5.4 kWp" or "10 kWp". This is the system's peak capacity, or its maximum potential power output under ideal, standardized test conditions. This size is directly correlated with the number and wattage of the solar panels proposed. For instance, a 5.4 kWp system might be composed of ten 540-watt panels. This is the "engine size" of your solar power plant.

Estimated Energy Production (Kilowatt-hours or kWh)

This is arguably more important than the system size. It’s the installer's official estimate of how much actual electrical energy (in kWh) the system will generate over a year. This figure should always be lower than the theoretical maximum because it accounts for real-world Philippine conditions, including:

• Peak Sun Hours (PSH): The average number of hours per day when solar irradiance is strong enough for peak panel performance. The Philippines generally has favorable PSH.
• Shading: Any potential shading from trees, adjacent buildings, or roof obstructions. A good proposal will mention if shading is a factor and how they’ve designed the panel layout to minimize its impact.
• Panel Orientation and Tilt: The direction (azimuth) and angle (tilt) of your roof. In the Philippines, a south-facing roof is ideal, but east- and west-facing roofs are also highly viable.
• System Inefficiencies: Minor energy losses that occur as electricity moves through wires and is converted by the inverter.

A credible installer will use specialized software to model this production accurately. Be wary of estimates that seem unusually high; they may lead to disappointing real-world savings.

Equipment Specifications: The Bill of Materials

A detailed proposal will list the exact make and model of the key components of the solar PV system. Do not accept vague descriptions like "Tier 1 Panels."

• Solar Panels (PV Modules): Look for the brand, model, and wattage. Pay attention to the efficiency rating (how well it converts sunlight to energy) and the temperature coefficient (how performance is affected by heat—crucial in our tropical climate).
• Inverter: This is the brain of your system, converting the DC electricity from the panels into the AC electricity your home uses. The report should specify the brand, model, and type (e.g., string inverter, microinverters, or a hybrid inverter if battery storage is included). Check its efficiency rating and warranty period.
• Mounting System: This is a critical safety component, not just a rack. In a typhoon-prone country, the mounting structure is what secures your investment to your roof. The proposal should specify the brand and type of mounting, assuring it is made from non-corrosive materials like aluminum and stainless steel and is engineered to withstand high wind loads. A section on typhoon-ready solar mounting is a sign of a diligent, climate-aware installer.

Section 3: The Financials - Investment, Savings, and Payback

This section translates the technical specifications into what matters most for many homeowners: the financial impact.

Total System Cost or Investment

This is the bottom-line price. A transparent quote will provide a clear breakdown:

• Cost of equipment (panels, inverter, mounting, etc.)
• Labor and installation costs
• Permit fees (LGU, Electrical, etc.)
• Utility application fees (for Meralco/co-op net-metering)

A "turnkey" price means this single figure covers everything from start to finish. Be cautious of quotes that leave out permitting or application fees, as these can be significant hidden costs. A useful metric for comparing quotes is the Price per Watt (PHP/Watt), calculated by dividing the total cost by the system size in watts (e.g., PHP 486,000 / 5,400 Watts = PHP 90 per watt).

Projected Financial Savings

This is where the proposal demonstrates the system's value. It should model your future electricity bills with solar installed. The savings are calculated by multiplying the system's estimated kWh production by your current electricity rate. The report may show:

• Monthly, annual, and long-term (e.g., 25-year) savings.
• A graph comparing your old electricity bill with your new, lower bill.
• The value of exported energy under the Net-Metering program. This is where excess solar energy generated during the day is sent to the grid, and your utility provides you with peso credits on your bill.

Return on Investment (ROI) and Payback Period

These are the headline financial metrics.

• Payback Period: This is the estimated time (in years) it will take for your accumulated electricity savings to equal your initial investment. In the current Philippine market, a typical payback period for a residential system is between 4 and 7 years.
• Return on Investment (ROI): This expresses the total financial gain over the system's lifetime as a percentage of the cost. A good guide to understanding solar ROI will show you that after the payback period, the energy produced is essentially free, leading to substantial long-term returns.

Scrutinize the assumptions used to calculate these figures. Are they based on a conservative electricity price increase, or an overly optimistic one? A 3-5% annual increase in utility rates is a reasonable assumption for projections.

Section 4: The Fine Print - Warranties, Timelines, and Commitments

This final section outlines the installer’s promises and the project's logistics. Pay close attention here, as this defines your long-term relationship with the company.

Warranties

A comprehensive proposal will clearly separate the different types of solar warranties:

• Panel Product Warranty: This covers defects in the panel itself, typically for 12-15 years.
• Panel Performance Warranty: This guarantees the panel will still produce a certain percentage (usually 80-85%) of its original output after 25 years.
• Inverter Warranty: This covers the inverter and is usually shorter, typically 5 to 10 years. Some premium brands offer extensions.
• Workmanship Warranty: This is the installer’s own warranty on their installation work, covering things like roof leaks or wiring issues. This is a crucial indicator of a reputable company and should be for a minimum of 1-2 years, with top installers offering 5 years or more.

Scope of Work and Project Timeline

This section should explicitly state what the installer will do. Does the "turnkey" price truly cover everything?

• Securing all LGU building and electrical permits.
• Filing and processing the Net-Metering application with your utility.
• Testing and commissioning the system.
• Providing a walkthrough and training on the monitoring system.

It should also provide an estimated timeline for these steps, from contract signing to the final activation of your system.

Your Role: The Final Analysis

Your solar feasibility report is not a take-it-or-leave-it document. It’s a detailed plan, and it's your right as a homeowner to understand it fully. Use this guide to go through your proposal section by section. Write down questions. If one installer’s proposal is missing details that another provides, ask them to supply the information.

A reputable solar installer will welcome your questions. They will be happy to explain their calculations, justify their equipment choices, and clarify their warranties. By engaging with the report on this level, you move from being a passive customer to an active, informed partner in your solar journey. This diligence is the first and most important step in ensuring your solar investment serves you well for the next 25 years and beyond.