Expanded Roof-Mounted Solar Program (ERSP)
The Expanded Roof-Mounted Solar Program (ERSP) extends the Net Metering Program’s rooftop solar framework to cover installations beyond the existing 100 kW net metering limit. It enables electricity end-users and solar PV developers to utilize available rooftop spaces for solar energy production, with options to use the electricity, sell excess to the grid, or enter into new commercial arrangements with third parties.
Development History
As of the NREP 2020-2040 publication (July 2022), the ERSP was still under development — the DOE was conducting studies to determine the appropriate policy and regulatory framework. Business models under exploration included: (1) capacity aggregation to go beyond the 100kW per-user limit, and (2) allowing commercial establishments to act as RE developers enabling peer-to-peer energy trading or WESM selling [NREP 2020-2040, p.56, 2022]. The formal framework was issued in December 2023 as DC2023-12-0035.
Legal Basis
The DOE issued DC2023-12-0035 — “Prescribing the Policy and General Framework on the Expanded Roof-Mounted Solar Program in the Philippines” — in December 2023 [PEP 2023-2050 Vol. II, p.47, 2023].
Business Models
The ERSP introduces three innovative business models [PEP 2023-2050 Vol. II, p.47, 2023]:
- Supply Contingency Option — Building/facility owners install rooftop solar as a contingency power source; surplus generation can be fed to the grid.
- Lease-to-Generate Option — A third-party solar developer leases rooftop space from a building owner; the developer installs, owns, and operates the PV system and sells electricity to the host or to the grid.
- Restricted Peer-to-Peer Energy Trading — Prosumers with rooftop solar generation can trade surplus electricity directly with other consumers within a defined scope (e.g., same distribution network area).
Objectives
The ERSP aims to [PEP 2023-2050 Vol. II, p.47, 2023]:
- Attract additional RE investment by opening commercial models beyond the prosumer-owner paradigm
- Empower building owners who cannot invest in solar to participate through the Lease-to-Generate option
- Decongest transmission and distribution networks by increasing distributed generation
- Add to the country’s supply of electricity from RE sources
Coverage and Key Definitions (DC2023-12-0035)
Coverage (§3): RSFs above 100 kWp intended for own-use and/or energy export. Below 100 kWp falls under Net Metering, DER Program, or GEOP. Applies to both on-grid and off-grid areas [DC2023-12-0035, §3, 2023].
Prosumer (§5.5): An Electricity End-User with a Self-Generation RSF capacity above 100 kW who can export energy to the grid. Below 100 kW, the end-user is simply a “Consumer” under Net Metering rules [DC2023-12-0035, §5.5, 2023].
RSP (§5.10): A Roof-mounted Solar Provider — the entity installing, operating, and maintaining the RSF. An RSP with a Lease-to-Generate RSF is classified as both a Generation Company and an RE Developer, requiring all corresponding permits [DC2023-12-0035, §5.10, 2023].
Business Model Detail
Supply Contingency Option (§6.1). Voluntary. Export permitted only during Yellow or Red Alert situations as defined in the Philippine Grid Code — not during normal grid operations. All meter upgrades borne by the End-User; connection costs by the Network Service Provider. Export compensation determined by ERC [DC2023-12-0035, §6.1, 2023].
Lease-to-Generate Option (§6.2). RSP must secure a Solar Energy Operating Contract (SEOC) from the DOE per DC2019-10-0013 (or its successor, DC2024-06-0018) before installation. Sale to host DU through PSA is subject to CSP rules (DC2023-06-0021 and predecessors). All energy must be exported — no direct supply to building occupants [DC2023-12-0035, §6.2, 2023].
Restricted P2P Energy Trading (§6.3). Supply contracts between RSPs, Prosumers, and Consumers within a contiguous area are non-regulated, similar to competitive retail market. The RSP operates the trading platform. Aggregated excess electricity may be sold to the host DU or Grid. DOE must be notified of all P2P arrangements [DC2023-12-0035, §6.3, 2023].
Regulatory Responsibilities
| Stakeholder | Key Obligation |
|---|---|
| TNP | Conduct SIS before Grid-connected RSF construction: >20 MW (Luzon), >5 MW (Visayas/Mindanao); include ERSP in annual TDP |
| DUs | DIS/DAS before RSF connection; include ERSP impacts in annual DDP/PSPP; act as default Metering Services Provider |
| RSPs | Annual report to DOE by January 30 (generation, capacity, location, business models); comply with PGC, PDC, DSOAR, PEC |
| Market Operator | Propose WESM/REM/Retail Rules amendments for ERSP integration; conduct WESM price impact studies on DOE direction |
| ERC | Issue pricing methodology and interconnection standards for all three business models within 60 calendar days of effectivity; review and amend as needed |
[DC2023-12-0035, §§7–9, 2023]
Relationship to Net Metering and GEOP
Net Metering covers prosumers up to 100 kW who own their installations. GEOP covers large consumers (100 kW+) who want to source from a dedicated RE supplier. ERSP bridges the gap for rooftop solar specifically — accommodating larger installations, leased systems, and peer-to-peer trading scenarios not captured by either program. See Net Metering Program and Green Energy Option Program (GEOP) .