Billions at Stake: Government Takes Legal Action Against Solar Philippines
- September 7, 2026
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The Philippine government has recovered only ₱80 million from the ₱24 billion in penalties and other obligations imposed on Solar Philippines Power Project Holdings Inc. (SPPHI), as authorities pursue legal action over stalled renewable energy projects.
Energy Secretary Sharon Garin disclosed the amount during the House of Representatives’ budget hearing on September 2, in response to questions from Akbayan party-list Rep. Chel Diokno on the government’s efforts to collect the money.
Garin said the ₱80 million represented payment for a training and development fee. The remaining obligations include penalties tied to performance bonds and other contractual commitments under the company’s renewable energy service contracts.
Legal Action Targets Billions In Obligations
Diokno noted that about ₱14 billion of the amount involved expired performance bonds. Garin confirmed that the government was seeking to recover the funds through legal proceedings.
“The issue currently is in the hands of the Department of Justice. With the OSG also,” Garin told lawmakers, referring to the DOJ and the Office of the Solicitor General.
The DOE has previously said it terminated dozens of renewable energy service contracts involving SPPHI after the projects failed to meet development commitments. The terminated projects accounted for more than 11,000 megawatts of capacity, or nearly two-thirds of renewable energy contracts terminated or relinquished in 2024 and 2025.
The ₱24-billion figure covers several types of financial obligations, including performance bonds, contractual penalties, training and development fees, and other amounts arising from the terminated projects.
In June, the DOE separately filed a civil case seeking the recovery of a ₱1.18-billion performance bond connected to a delayed 120-megawatt solar project in General Santos.
New Rules Could Lead To Blacklisting
Lawmakers also questioned why Solar Philippines had not yet been blacklisted despite the scale of the penalties and the termination of its projects.
Garin said the DOE previously had no specific rules providing for the blacklisting or suspension of generation companies. That changed with the department’s recent issuance of new accountability guidelines for generation companies, or GenCos.
Under the new framework, companies can have three “strikes” before facing possible blacklisting, Garin said.
“We have just recently issued the guidelines, and now we’re working on it,” she said. The secretary did not indicate that SPPHI had already reached the threshold for blacklisting.
The government’s recovery effort comes as Rep. Leandro Leviste and his businesses face increased scrutiny over their solar ventures.
Ombudsman Investigation Continues
In July, Ombudsman Jesus Crispin Remulla disclosed that Leviste, his mother, Sen. Loren Legarda, and former Energy Secretary Alfonso Cusi were under preliminary investigation over allegations of plunder and graft involving uncompleted solar power projects.
The Office of the Ombudsman subsequently ordered the respondents to formally answer the complaints.
The investigation involves allegations concerning roughly ₱10 billion worth of solar projects, including claims that government approvals and legislative action were used to secure project rights that were later left undeveloped.
Legarda has denied the allegations, calling them false and baseless. Leviste has also maintained that Solar Para sa Bayan was separate from SPNEC, the listed renewable energy company that later came under majority control of Meralco PowerGen’s renewable energy arm.
Separate Corporate Entity
SPPHI, the holding company controlled by Leviste, remains a shareholder of SP New Energy Corp. (SPNEC), although its stake was reduced to 11.51% following the sale of another ₱3 billion worth of SPNEC shares disclosed on September 1.
Meralco PowerGen’s renewable energy arm has emphasized that SPNEC is a separate corporate entity and is not liable for the P24 billion in obligations being pursued by the DOE.
Leviste founded Solar Philippines in 2013 with the goal of expanding solar power development in the country. The government’s recovery effort now centers on enforcing the financial obligations attached to projects that failed to meet their contracted commitments.
As legal proceedings move forward, the ₱80 million recovered so far represents only a small portion of the ₱24 billion the government says remains subject to collection.
Source:
https://www.rappler.com/business/department-energy-collected-penalties-leandro-leviste-solar-firm
