Solar Payback Calculator (Philippines)
How many years until a solar system pays for itself? This calculator splits your solar output between what you use directly and what you export under net metering — because Meralco credits those very differently.
Rates & prices last verified: 2026-09Simple payback:
| Annual solar production | |
|---|---|
| Value of self-consumed power | |
| Value of exported power | |
| Total savings per year | |
| Savings per month | |
| 25-year gross savings (year-one rates) |
Not sure what system size to enter? Get it from your bill with the solar panel calculator.
How the calculation works
Annual production is kWp × peak sun hours × 0.80 × 365. The self-consumed share is valued at your full Meralco rate (₱14.7424/kWh as of 2026-09); the exported share at the blended generation cost Meralco credits under net metering (₱5–₱6.5/kWh — distribution and transmission charges are excluded from export credits, which is why exports are worth less than half of what you avoid by using solar directly). Simple payback is cost ÷ annual savings.
Worked example
A 3.1 kWp grid-tie system at ₱160,000: it produces about 4,073 kWh a year. At 70% self-consumption, that's 2,851 kWh × ₱14.74 ≈ ₱42,036 plus 1,222 kWh exported × ₱6.00 ≈ ₱7,332 — about ₱49,368 a year, so the system pays for itself in roughly 3.2 years. That matches the 3.1-year national average Ember measured this year.
Frequently asked questions
What is the average solar payback period in the Philippines?
About 3.1 years for residential systems as of 2026-06 (Ember), down from 4 years in 2025 — rising Meralco rates and cheaper panels keep shortening it.
Why does self-consumption matter so much?
Electricity you use directly replaces power billed at the full rate (~₱14.74/kWh), but exports are credited only at the blended generation cost (~₱5–₱6.5/kWh). A system sized to what you actually use during the day pays back much faster than an oversized one.
Does the calculator include panel degradation?
The simple payback figure uses year-one output. Panels lose roughly 0.5% output per year, which barely moves a 3-year payback but matters for 25-year savings projections — treat the lifetime figure as an optimistic ceiling.