Institutional and Financial Insights and Considerations in the Implementation of a Rooftop Solar PV

In collaboration with C40 Cities Finance Facility (CFF), Agafer Creatives developed two Knowledge Products which aims to empower Local Government Units in implementing rooftop solar photovoltaic (PV) projects. Throughout the engagement, a wide array of multi-sectoral stakeholders from the national and local level were engaged in order to ensure that the results provide a multi-dimensional and comprehensive view point.

One of the two Knowledge Products detailed the institutional and financial considerations that the LGUs should take into account in order to have a successful and sustainable project implementation.

Three institutional considerations were detailed in the Knowledge Product, these are as follows:

1. Laws and Policies: An enabling legal and policy framework is already in place to support national and local-level energy-related projects in the Philippines.

2. Project Planning: The institutionalization of a city project team, particularly a technical working group, will significantly increase the likelihood of the project being successful.

3. Guidelines: The Manual on Project Evaluation published by the National Economic Development Authority (NEDA) is a valuable resource for LGUs that are ready to undertake feasibility studies for a rooftop solar PV project.

In terms of the financial considerations, the Knowledge Product also detailed three main insights:

1. Financing Options: There are five primary options for financing solar PV projects: 1) National Government Support; 2) Internal revenue Allotment and Local Revenues; 3) Official Development Assistance; 4) Public-Private Partnership; 5) Borrowing.

2. Procurement: Procurement activities relevant to solar PV projects are governed by the Government Reform Act. Additionally, LGUs can also enter into an agreement with international development organizations to utilize their procurement system.

3. Sustainability: It is critical to ensure the active involvement of key project stakeholders during project implementation to ensure the success and sustainability of the initiative. A stakeholder engagement plan must also be developed.