Solar Photovoltaic System Adoption Among Select Philippine Business Establishments: A PLS-SEM Analysis

The study explored the factors that influenced select businesses in the Philippines to install and use rooftop solar photovoltaic (PV) systems, focusing on those that have already adopted this technology. Unlike earlier research that primarily examined potential users, this study analyzed the real-world experiences of 119 business owners and/or decision-makers in Luzon. The research is timely as the Philippines aims to increase its renewable energy share to 35% by 2030 and 50% by 2040, with the commercial and industrial sectors accounting for more than 50% of the country’s energy consumption. Through predictive causal research and analysis using Partial Least Squares-Structural Equation Modeling (PLS-SEM), the study revealed that social norms, perceived benefits, and corporate reputation were key factors driving solar adoption. Despite these motivations, businesses face challenges such as high installation costs, limited financing options, and delays in government approvals. These findings offer actionable insights for policymakers, solar providers, and financial institutions to develop strategies that address these barriers, improve accessibility, and encourage broader adoption of solar energy. By addressing the motivations and obstacles identified, this research can support the Philippines’ renewable energy goals while helping businesses contribute more significantly to sustainability efforts. Its findings aim to inspire further investments in solar energy, advancing economic growth and fostering a cleaner, greener future.