The single biggest driver of solar payback is your per-kWh tariff, and Mindanao has a patchwork of electric cooperatives that charge meaningfully different rates. VECO (Visayan Electric), MECO (Mactan Electric), and MOELCI II (Misamis Occidental II) cover most of the solar-interested residential market. Here is how their 2025 tariffs compare, and what each one means for your payback math.
The short answer: above PHP 11/kWh, solar is worth it almost everywhere in the Philippines. The longer answer is more interesting.
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The 2025 tariff snapshot
Residential tariff snapshot for the three franchises:
- VECO (Cebu City, Mandaue, Talisay, parts of Cebu province): PHP 11.40 to 11.80/kWh residential in 2025. Among the highest in the Visayas.
- MECO (Lapu-Lapu City, Mactan island): PHP 11.20 to 11.60/kWh residential in 2025. Slightly lower than VECO due to franchise competition.
- MOELCI II (Ozamiz, Tangub, and 6 other municipalities of eastern Misamis Occidental): PHP 11.10 to 11.50/kWh residential in 2025. Above the PHP 11/kWh threshold.
All three are above the PHP 11/kWh mark that turns solar from a lifestyle purchase into a financial no-brainer. For all three, a 5 kW system pays back in 3 to 5 years.
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What changes the answer: escalation rate
Tariff is the static snapshot. The dynamic number that actually drives long-term ROI is the annual rate of increase. Over the last 5 years:
- VECO has averaged 3.5 to 4.5 percent annual residential rate increases.
- MECO has averaged 4 to 5 percent.
- MOELCI II has averaged 5 to 6 percent.
MOELCI II has the highest escalation, which means every year you delay solar costs you more in forgone savings. A 5 kW system installed in MOELCI II territory in 2026 instead of 2025 loses roughly PHP 95,000 in cumulative savings over the 25-year life of the system, assuming escalation continues.
This is counterintuitive — higher escalation is good for solar ROI once the system is installed. It is bad for the homeowner who delays.
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Payback sensitivity to tariff
For a 5 kW on-grid system at PHP 280,000 installed, producing 8,000 kWh per year:
- At PHP 10/kWh — payback 4.5 to 5 years. Marginal, depends on escalation.
- At PHP 11/kWh — payback 3.5 to 4 years. Worth it.
- At PHP 12/kWh — payback 3 to 3.5 years. Strongly worth it.
- At PHP 13/kWh — payback 2.5 to 3 years. Excellent.
VECO and MECO sit at the PHP 11.20 to 11.80 range, MOELCI II sits at PHP 11.10 to 11.50. All three are inside the strongly-worth-it band. The differences in payback between the three are 3 to 6 months — meaningful, but not life-changing.
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What about peak sun hours?
Production matters as much as tariff. A 5 kW system in a sunny location produces more kWh and saves more pesos.
- VECO territory (Cebu City, Mandaue, Talisay): 5.0 to 5.5 peak sun hours per day. Production 7,500 to 8,200 kWh/kW/year.
- MECO territory (Lapu-Lapu, Mactan): 5.5 to 6.0 peak sun hours per day, slightly drier climate. Production 8,200 to 8,800 kWh/kW/year.
- MOELCI II territory (Ozamiz, Tangub, eastern Misamis): 5.0 to 5.5 peak sun hours per day. Production 7,500 to 8,200 kWh/kW/year.
MECO territory has the highest production per kW installed. VECO and MOELCI II are similar. The difference is 5 to 10 percent more production in MECO, which translates to 5 to 10 percent faster payback for the same installed cost.
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The net-metering wrinkle
One tariff-related factor that does not show up on the rate sheet: how the cooperative handles net-metering credits when you export more than you consume in a month.
- VECO carries credits forward month to month and pays out the residual balance after 5 years. Payouts have been slow but eventually happen.
- MECO carries credits forward month to month, pays out on request after 5 years.
- MOELCI II carries credits forward indefinitely in practice. Payout timing is more flexible than VECO or MECO.
For a solar system that produces 20 to 40 percent more than you consume (typical with right-sized residential), this matters. A homeowner who generates a large credit balance in summer and uses it for AC-heavy months wants to know the credit will still be there in December.
Is solar worth it in Mindanao? Yes.
Across VECO, MECO, and MOELCI II, the answer is the same: yes, solar is worth it. All three tariffs are above the PHP 11/kWh threshold, all three get 5+ peak sun hours, and all three have functioning net-metering programs.
The Mindanao-specific question worth asking is not whether solar is worth it, but how to size the system. For Ozamiz and Tangub homeowners, the right move is often a hybrid system with 5 to 10 kWh of battery to handle the more common bay-side brownouts. For Cebu City homeowners, on-grid is usually the right answer. For Lapu-Lapu (MECO), the highest production per kW in this comparison, the case for oversizing is strong.
Get three quotes from installers familiar with your specific cooperative. Payback math shifts by 3 to 6 months based on which franchise paperwork the installer knows how to push.
Frequently asked questions
Which electric cooperative in the Visayas-Mindanao region has the highest tariff?
Among VECO, MECO, and MOELCI II, VECO has the highest 2025 residential rate at PHP 11.40 to 11.80/kWh, narrowly above MECO and MOELCI II. The differences are small — all three are above the PHP 11/kWh threshold that makes solar strongly worthwhile.
Does MOELCI II raise rates faster than VECO?
Yes. MOELCI II has averaged 5 to 6 percent annual residential rate increases over the last 5 years, vs VECO at 3.5 to 4.5 percent. Faster escalation makes solar ROI better once installed, but it punishes homeowners who delay the install decision.
Where in the Visayas-Mindanao region does solar pay back fastest?
MECO territory (Lapu-Lapu City, Mactan) pays back fastest on a pure production basis because of 5.5 to 6 peak sun hours per day. VECO and MOELCI II are tied at 5 to 5.5 hours. The difference is 5 to 10 percent production, which translates to 3 to 6 months faster payback in MECO.
Get your free Misamis Occidental site survey.
SolarConcept Cebu installs across the entire province from our satellite office in Ozamiz City. Free site survey anywhere in Misamis Occidental — both MOELCI II and MOELCI I territories. Most proposals within 48 hours.