9 Pangasinan MSMEs slash power costs up to 90% with DOST solar tech

LINGAYEN, Pangasinan — Nine micro, small, and medium enterprises (MSMEs) in Pangasinan have successfully installed solar power systems through the Department of Science and Technology’s (DOST) Small Enterprise Technology Upgrading Program (SETUP), reducing electricity consumption by up to 90 percent, the agency announced this week.

Program details and beneficiaries

The DOST said the nine firms, spread across the province, adopted solar photovoltaic (PV) systems under SETUP’s technology upgrading component. The initiative aims to lower operational costs and improve competitiveness through renewable energy.

First installation at Gerrilaide Farm

One of the early beneficiaries is Gerrilaide Farm in Bolinao, Pangasinan. The farm integrated a solar power system to power its poultry and agricultural operations. The DOST said the farm’s solar setup has cut its monthly electricity bills significantly, though exact figures for each firm were not disclosed.

“At present, nine SETUP-assisted firms across the Pangasinan province have successfully integrated solar power systems,” the DOST said in a press release posted on social media. “The technology has enabled some businesses to reduce electricity consumption by as much as 90 percent.”

How SETUP works

The SETUP program provides MSMEs with technical assistance, financial support for equipment acquisition, and training on new technologies. Businesses apply through DOST’s regional offices, where they undergo an assessment of their energy needs and operational profile.

Once approved, DOST helps fund the purchase and installation of solar panels, inverters, and related equipment. The agency also partners with local government units and renewable energy providers to ensure proper maintenance and monitoring.

Cost savings and payback period

According to the DOST, solar systems typically pay for themselves within three to five years, depending on the scale of installation and electricity usage. After that, MSMEs enjoy near-free power for the remaining lifespan of the panels, which can exceed 20 years.

For Gerrilaide Farm, the solar technology upgrade aligned with its goal to reduce overhead costs while maintaining production levels. Farm owners noted that the savings allowed them to reinvest in other areas such as feed and equipment.

Impact on MSME operations

The power cost reduction has a direct effect on profitability. For many MSMEs in Pangasinan, electricity often accounts for 20 to 30 percent of total operating expenses. By cutting that by up to 90 percent, businesses can redirect funds toward expansion, hiring, or raw materials.

A DOST provincial officer noted that the program has also improved the firms’ resilience during power outages, as solar systems with battery storage can keep critical equipment running.

Expansion plans

The DOST said it is open to accepting more applications from Pangasinan MSMEs interested in renewable energy upgrades. The agency has allocated a separate budget for technology adoption under its 2025 funding cycle, with a focus on energy-intensive sectors such as food processing, livestock, and manufacturing.

“We encourage other MSMEs in the province to take advantage of this program,” the DOST official said in a statement. “The long-term savings and environmental benefits make it a worthwhile investment.”

Broader implications for renewable energy adoption

The Pangasinan solar installations come at a time when the Philippine government is pushing for greater renewable energy penetration in the grid. Under the Renewable Energy Act, the Department of Energy targets a 35 percent share of renewables in the power mix by 2030.

MSMEs, which make up over 99 percent of all businesses in the country, are seen as a key sector to drive distributed energy generation. Solar rooftops on factories and farms reduce demand on the national grid and lower carbon emissions.

However, the high upfront cost of solar systems remains a barrier for many small businesses. Programs like SETUP address that gap by providing subsidized funding and technical guidance.

Lessons from Pangasinan

The experience of the nine Pangasinan firms could serve as a model for other provinces. The DOST plans to document the energy savings data and operational changes from these adopters to create a case study for future applicants.

One business owner in Bolinao reported that the solar system allowed his farm to operate longer hours without worrying about electricity costs, boosting productivity by 15 percent.

Future of the program

The DOST regional office in Pangasinan said it will continue to monitor the performance of the installed systems. It also plans to conduct training sessions on solar system maintenance for MSME owners and their staff.

For the nine firms, the shift to solar power marks a step toward self-sufficiency and lower carbon footprint. As more businesses adopt the technology, the collective impact on energy consumption and economic growth in Pangasinan is expected to become more pronounced.

The DOST encourages interested MSMEs to contact their provincial office for eligibility requirements and application procedures for the SETUP program.