Zero-Capex Solar Model Accelerates Corporate Renewable Energy Adoption in the Philippines

Businesses across the Philippines are increasingly turning to solar energy without upfront investment, driven by Berde Renewable Inc.’s zero-capex deployment model, which allows companies to reduce electricity costs while transferring project risks and operational responsibilities to the developer.

Berde Renewables Co-founder and Group CEO Morris Zhou told Power Philippines that the model has seen strong uptake among manufacturers, logistics operators, and property developers seeking long-term energy savings without committing capital. Speaking to Power Philippines, Zhou said companies are attracted by the ability to decarbonize operations while avoiding balance-sheet strain.

Under the zero-capex arrangement, Berde designs, finances, builds, owns, and operates rooftop or ground-mounted solar power systems at client sites. Customers enter into power purchase agreements (PPAs) ranging from 10 to 25 years, purchasing electricity at rates lower than prevailing utility tariffs. Berde assumes full responsibility for capital expenditure, system performance, operations, maintenance, insurance, and even typhoon-related repairs.

Zhou said Berde also bears performance risk, with provisions for liquidated damages if systems fail to meet contracted output levels. This structure, he noted, removes concerns over generation losses and technical management for customers, making solar adoption accessible to businesses constrained by high financing costs or focused on preserving cash for core operations.

According to Zhou, Berde’s clients generally fall into two segments: institutional enterprises and family-owned mid-market companies. Institutional clients, including multinational corporations and listed firms, typically view zero-capex solar as a cost-efficient way to meet ESG commitments while hedging against rising grid electricity prices. Family-owned businesses, by contrast, have traditionally preferred owning their systems outright, but many later encounter performance and maintenance challenges.

To address this, Berde has begun offering to acquire existing customer-owned solar assets, including systems it did not originally develop. Once acquired and refurbished if necessary, Berde places the systems on its balance sheet and enters into long-term offtake agreements with the host companies, providing performance guarantees and assuming ongoing operational responsibility.

Zhou said interest in this approach has grown, particularly among family-backed businesses that recognize the cost-saving benefits of solar but no longer wish to deploy their own capital. He added that this trend has contributed to the rapid growth of the zero-capex model in the Philippines this year.

Berde is also expanding into hybrid solar-plus-storage solutions as battery prices continue to decline. With battery costs reportedly falling by more than 50 percent, the company is integrating energy storage into new and existing projects, enabling clients to store excess daytime generation for use during evening peak periods. This is especially relevant for energy-intensive, round-the-clock operations such as food processing, logistics, and cold storage.

Supported by a $100 million equity commitment from I Squared Capital, Berde is scaling its distributed solar portfolio across Luzon, Visayas, and Mindanao. The company has committed more than 50 MW of capacity to date and is targeting 100 MW by the end of the year. Most projects range from 2 MW to 5 MW and are installed on factory rooftops or adjacent sites to serve captive demand, allowing faster deployment by avoiding lengthy grid permitting processes.

Zhou said distributed generation is particularly suited to the Philippines’ archipelagic geography, offering scalability, flexibility, and improved energy resilience. He added that the success of the zero-capex model depends on aligning incentives, as Berde earns revenue only when systems perform as contracted.

As electricity prices continue to rise, Zhou expects more Philippine businesses to adopt zero-capex solar arrangements, accelerating renewable energy deployment and reshaping how companies transition to cleaner power.