It has been over two years since the Supreme Court en banc voted in favor of the Enrique Razon Jr.-owned MORE Electric Power and Corporation to take over Iloilo’s power distribution system from longtime power provider Panay Electric Company (PECO) of the Cacho family. But way before the power struggle, PECO’s then-head of government affairs and consumer engagement Marcelo Cacho was already looking into the future.
First founded in 2017 as part of the Cacho Group of Companies, Panay Alternative Energy Inc., also known as PA Energy, was established with a collective experience of almost 100 years in the energy industry. The company has since been ranked among the top renewable energy providers in the Visayas region.
“We were always planning to get into renewables,” said Cacho, currently PA Energy’s head of corporate strategy. “Even before the takeover we could see that eventually this model would, over a period of time, make our old model irrelevant. People generating their own power was bound to happen.”
Last October, PA Energy reached 1.03 megawatts (MW) in the total energy it provided for its customers. The company currently has over 2,200 solar panels installed, mostly around Iloilo, where the company is based.
One primary reason is their commitment to high-quality manufacturing. PA Energy uses premium panels from tier-1 manufacturing sourced from China. Coupled with its use of brands like Trina and Longi, both listed among the world’s top 10 solar panel producers, PA Energy provides long-lasting solar panels with minimal maintenance. These also come with 30-year performance warranties with replacement options.
Moreover, these quality checks create more energy-efficient solar panels. With a 21% efficiency rating, PA Energy’s solar panels can generate more electricity with the same panel size compared to the 16% efficiency rating of tier-2 and industry standards. Unfortunately, solar energy still suffers from the stigma of high initial costs, and this prevents a lot of potential customers. But PA Energy has found a way around this issue by offering more flexible payment plans.
“I’ve always wanted to use solar power due to the rising cost of electricity. What hindered me was the prohibitive cost of having one,” explained Peter L. Neri, CEO of Medicus Diagnostic Center. “[But] Panay Alternative Energy has given me a proposal I can’t refuse. Their on-grid solar power system enables me to save the cost of electricity that can pay the monthly amortization with no other extra cost on my part. I highly recommend PA Energy.”
Raffy Ignacio, a business owner, and PA Energy client, agreed. “I was able to cut down my bill from P30,047.80 to P22, 507.75 during my first month alone. That’s P7,540.05 worth of savings produced by my 5kWp system while only paying P4,513.51 a month for my solar installment plan.”
As of last October, PA Energy has served 24 commercial customers. In Iloilo City Proper, PA Energy’s biggest projects include a 116kWp shopping center and a 39kWp commercial building, which can generate 159,713.04kwh and 55,620kwh respectively per year.
“They protect you from energy price fluctuations and can help businesses forecast expenses better,” Cacho explained. “For businesses that operate mostly during the day, you can even reduce your electric consumption as high as 90%.”
PA Energy also insists that in the long run, its solar energy panels are one of the most cost-effective options in the market. “When you factor in the 30-year lifespan of the panels, at a certain point, it’s like receiving free energy. With current grid rates, you can actually cover the cost of a system in about 5-6 years,” Cacho continued.
But PA Energy isn’t limited to just business owners as it also has payment and installation plans that can cater to households.
“We are very happy and pleased to see it reduced our electricity bills,” the Dacumos family said. “Thank you so much PA Energy for helping us reach our energy goals and for letting us avail of your 0% down-payment installment programs.
The 1MW milestone is just a step in PA Energy’s journey to expand the renewable energy industries in the Philippines.
PA Energy is currently looking into low-cost battery solutions to help in areas that have excessive power outages. These could address immediate needs in poverty or disaster-stricken areas in the provinces. Moreover, PA Energy has ongoing assessments for Energy Performance Certificates for grid-sized projects in the 3-5MW range. Once these are set up, PA Energy is expected to grow rapidly.
Expansion is also in the works for the Iloilo-based company. PA Energy aims to set up branches in every major regional center in the Philippines. Doing so would let them better access areas both inside and outside of the Visayas region.
In addition, PA Energy is looking into other sources of clean energy.
“We also want to look into introducing other renewable energy technologies that may emerge,” said Cacho. “Solar is just phase 1 but the company is looking at different potential energy sources that can help give consumers energy independence. Giving people the ability to generate their own power and be free of grids at affordable rates is something we are really passionate about.”