TO CUT electricity costs, Cebu City Mayor-elect Nestor Archival plans to install solar power panels on City Government’s buildings.
Archival projects that this initiative will drastically cut the current P1.7 million monthly electricity bill, with the city primarily responsible only for maintenance costs after the system’s turnover.
The mayor-elect, in an interview on Tuesday, June 17, 2025, noted that the eighth-floor Executive Building currently incurs approximately P1 million in monthly electricity costs, while the four-floor legislative building spends around P700,000.
With solar panels installed, Archival expects these figures to become immediate savings for the city.
The plan is underpinned by Ordinance 2772, which Archival himself authored and which was approved by the City Council on June 4, 2025. This ordinance was one of two critical measures Archival sought to pass before he formally assumes office on June 30.
“If the solar ordinance is implemented, we will not have to look for a budget,” Archival said in a mix of Cebuano and English.
He, however, did not mention if this will be implemented within the year.
Funding
Under the ordinance, private contractors interested in the project will fund and install the solar power systems at no upfront cost to the city. In return, they will recover their investment and profit from the city’s energy savings over a set period. Once their investment is recouped and profit achieved, the solar power system will be turned over to the city.
Archival said he intends to partner with a reputable firm that offers a shorter turnover period. He cited an example where a contractor proposing a three-year service before turnover would be favored over one offering a longer term.
Upon turnover, the city’s responsibility will be limited to maintenance, which Archival clarified would primarily involve “cleaning the panels.”
“When it is turned over, we will not have a problem because we will just do the maintenance, cleaning the solar panels,” he explained, adding, “Our own bill will then be smaller.”
According to the ordinance, a financial framework will be established to balance the private sector’s return of investment with the city’s upgrade needs. It will apply to all existing and future city-owned facilities and new electrical installations.
The selected contractor, chosen through a bidding process, will handle all aspects of the upgrade, from material needs to projected usage, and will maintain exclusive control over the operation and upkeep of the upgraded facility until turnover.
The City Government will also form a technical working group (TWG), comprising various department heads and a representative from the Institute of Integrated Electrical Engineers of the Philippines. This TWG will be responsible for reviewing proposals, recommending adjustments, overseeing installation and maintenance, and evaluating bids to select the contractor offering the shortest project duration and highest projected savings.
The ordinance also stipulates that contractors that violate its provisions will be held liable for any damages incurred by the city. It will take effect upon the mayor’s signing and publication in a local newspaper. / JPS