Iran war drives solar sales in energy-hungry Asia

Iran war fuels surge in rooftop solar demand across parts of Asia

A jump in fuel costs tied to the Iran war is pushing consumers across energy-stressed Asia to consider rooftop solar as an alternative, according to reporting by the Associated Press. The pattern is unfolding amid broader concerns about power reliability and higher electricity expenses, and it is drawing attention to China’s role in supplying solar equipment.

In the Philippines, where the government has described an energy emergency, a survey led by the nonprofit New Energy Nexus found a rapid rise in solar activity after the war began Feb. 28. The survey of 20 local solar companies reported a 70% increase in weekly installations and a six-fold increase in customer inquiries since the conflict started, according to the AP report.

Brenda Valerio, who ran the survey for New Energy Nexus, said the war has become a catalyst for adoption. “This crisis is a driving force for solar,” Valerio said, adding, “People want solar and people want solar now.” Her comments were cited in connection with the increase in customer interest for rooftop systems.

The AP report tied the Philippines’ push toward solar to disruption risk and sharp energy costs, including the country’s reliance on Middle Eastern crude oil and liquefied natural gas. It also noted that the closure of the Strait of Hormuz has contributed to strain on the energy system, with local airlines weighing fuel rationing, public transport workers receiving cash handouts, and gas and diesel prices rising.

The reporting also described steps taken to conserve energy, including a four-day work week for some government offices and guidance to keep air conditioning no lower than 24 degrees Celsius (75 degrees Fahrenheit). In that environment, Jaime Quemado, who recently bought a rooftop solar system in Manila, said an energy bill after the war began brought a “wow” shock, and he said concerns about potential power outages helped prompt his move to solar.

New Energy Nexus said customer interest in rooftop solar rose from around 115 inquiries in February—before the Feb. 28 start of the Iran war—to more than 450 by mid-April. The AP report described installers working through intensely hot conditions, including EcoSolutions installing an 18-kilowatt rooftop solar system with 28 panels from Chinese manufacturer LONGi and four batteries from Dyness, a battery group based in Suzhou.

The AP report also quoted industry representatives describing solar adoption as part of a broader industry shift. EcoSolutions president Richmond Reyes said the war “helped the solar industry really get its footing,” and Joel Remegio of the Association of Solar Installers of the Philippines called the energy crisis a “game changer” for the country’s nascent solar sector.

Broader incentives are also reaching policymakers and markets in the wider region and beyond. The AP report said research by Zero Carbon Analytics described the energy crisis as incentivizing decisions related to rooftop solar across Southeast Asia, and it cited Indonesia’s target of installing 100 gigawatts of rooftop solar by 2034, up from 1.3 gigawatts. It also said Vietnam aims for rooftop solar on at least 10% of public offices and homes nationwide by 2030, and it noted Thailand is considering policies to increase the amount of surplus energy the grid can buy.

In addition, the report said online marketplaces and utility companies in the U.S. and Europe recorded jumps in solar sales and inquiries after the Iran war began. Jan Rosenow, a professor of energy and climate policy at Oxford University, said rooftop solar is an accessible way for people to cut electricity bills, adding that solar is among the easiest actions people can take to reduce monthly costs.

The AP report also said the demand surge is intersecting with global supply flows, with China positioned to supply equipment. Ember, an energy think tank, said Chinese clean technology equipment exports hit a record high in March, and it reported that China exported 68 gigawatts worth of clean-technology products that month—equivalent to Spain’s entire solar capacity and double its February output. The report said Ember found the Iran war is accelerating the world’s energy transition.

Ember’s figures, as cited by AP, showed exports to Africa reaching 10 gigawatts in March, a 176% increase from February, with rapid growth reported in Nigeria, Kenya and Ethiopia. It also said exports to other Asian nations doubled to 39 gigawatts, including major increases to India, Malaysia and Laos.

Ramnath Iyer of the Institute for Energy Economics and Financial Analysis said the speed of the transition depends on whether world leaders decide to move away from fossil fuels and pursue electrification. The AP report also quoted Li Shuo, director of the Asia Society Policy Institute’s China Climate Hub, who argued Chinese companies were already ahead before the war and that oversupply put them in a position to capitalize on current demand, calling the renewables industry “a one-man show” and saying the war situation would help China cement its dominance.