Net Metering Program

The Net Metering Program allows electricity end-users who install eligible renewable energy (RE) generation facilities — primarily rooftop solar PV — to export surplus generation to the distribution grid and receive corresponding credits on their electricity bills. The program enables small-scale prosumers to contribute to the RE mix and reduce their net electricity costs.

The program is authorized under Section 10 of the Renewable Energy Act (RA 9513) and jointly administered by the DOE and ERC .

Statutory Mandate (Section 10, RA 9513)

Key statutory parameters from Section 10 [RA 9513, Section 10, 2008]:

• DUs must enter into net-metering agreements with qualified end-users installing RE systems — without discrimination and upon request, subject to technical considerations.
• ERC, in consultation with NREB and industry participants, shall establish interconnection standards and pricing methodology within one year of effectivity.
• The DU receives the RE Certificate from a net-metering arrangement and may use it for RPS compliance under §6 — directly aligning net-metering with RPS.
• DOE, ERC, TRANSCO, DUs, PEMC and all parties are mandated to provide physical connection and commercial arrangement mechanisms.

The 100 kW installation cap is derived from the §3(k) definition of “distributed generation” in the IRR (DC2009-05-0008) — “a system of small generation entities supplying directly to the distribution grid, any one of which shall not exceed 100 kilowatts in capacity” — and operationalized in ERC’s net metering rules [DC2009-05-0008, SEC. 3(k), 2009-05-25].

As defined in the IRR, “Qualified End-users” refers to entities that generate electric power from an eligible on-site RE generating facility — such as, but not limited to, a house or office building with a photovoltaic system that can be connected to the grid — for the purpose of entering into a Net-Metering agreement [DC2009-05-0008, SEC. 7, 2009-05-25].

Enabling Issuances

• ERC Resolution No. 9, s.2013 — adopted the Net-Metering Rules; entitled “A Resolution Adopting the Rules Enabling the Net-Metering Program for Renewable Energy” [NREP 2020-2040, p.4, 2022]
• ERC Resolution No. 6, s.2019 — amendments to the 2013 rules; key changes: (1) prescribed a maximum of 20 days for DUs to complete the full interconnection process; (2) removed the Distribution Impact Study (DIS) fee and other soft costs to reduce installation costs and simplify the application process [NREP 2020-2040, p.4, 2022]

Additional Enhancements (DC2020-10-0022)

DC2020-10-0022 (22 October 2020) — “Prescribing the Policies to Enhance the Net-Metering Program for Renewable Energy Systems” — further expanded the program [DC2020-10-0022, §§3–13, 2020-10-22]:

Sizing threshold (§5): A Qualified End-User shall not be a net generator at the end of each calendar year — annual generation must not exceed annual consumption. This prevents facility oversizing [DC2020-10-0022, §5, 2020-10-22].

Banking of net-metering credits (§6): Credits banked for a maximum of one (1) calendar year; any balance at year-end is forfeited (not rolled over). For credits accumulated before this DC’s effectivity, ERC must issue rules on disbursement of outstanding peso credits to QEUs within 90 days [DC2020-10-0022, §6, 2020-10-22].

Off-grid expansion (§7): Net-metering is now allowed in areas not connected to the Luzon, Visayas, or Mindanao grids, subject to technical considerations under the Philippine Electrical Code, Philippine Distribution Code, DSOAR, Philippine Small Grid Guidelines, and the Amended Net-Metering Rules. ERC may issue amendments to interconnection standards for off-grid areas in consultation with DOE, DUs, NEA, and NPC [DC2020-10-0022, §7, 2020-10-22].

DU hosting capacity publication (§8): DUs must publish their net-metering programs, processes, procedures, and hosting capacities on a per-feeder or sector basis on their websites or official social media platforms [DC2020-10-0022, §8, 2020-10-22].

Net-metering charge (§13(b)): All costs incurred by the host DU — including metering, supply, and storage — shall be charged only to Qualified End-Users as a “net-metering charge,” subject to ERC determination and approval [DC2020-10-0022, §13(b), 2020-10-22].

Biennial review (§13(c)): DOE and ERC shall review and evaluate the Enhanced Net-Metering Program every two years or as needed to ensure it benefits all electricity end-users and meets RA 9513 objectives [DC2020-10-0022, §13(c), 2020-10-22].

NEA responsibilities (§10): NEA shall provide technical assistance to ECs on Distribution Impact and Asset Studies and hosting capacity determination, and include net-metering in orientations for new member-consumers [DC2020-10-0022, §10, 2020-10-22].

LGU obligations (§9): LGUs must comply with the EVOSS Act (RA 11234) and the Ease of Doing Business Act (RA 11032) in processing building permits and electrical inspection certificates for net-metering applications [DC2020-10-0022, §9, 2020-10-22].

Prohibited act (§12): Willful refusal by a DU to undertake net-metering arrangements with Qualified End-Users without justifiable cause is subject to administrative penalties under RA 9513 §35(b) [DC2020-10-0022, §12, 2020-10-22].

Net-Metering Guidebook (§11): REMB was directed to prepare the Guidebook within 6 months of effectivity; published April 2022 [PEP 2023-2050 Vol. II, p.44, 2023].

ERC Resolution No. 5 s.2020 (27 February 2020) clarified certain provisions of ERC Res 6 s.2019 [NREP 2020-2040, p.30, 2022].

Historical Status (December 2021)

As of 31 December 2021 [NREP 2020-2040, Table 8, p.30, 2022]:

By December 2023 this grew to 101.5 MWp / 11,707 prosumers [PEP 2023-2050 Vol. II, 2023].

Current Limit

Under the existing Net Metering Program, the maximum installation size eligible for net metering is 100 kWp per end-user. The Expanded Roof-mounted Solar Program (ERSP) (DC2023-12-0035) extends beyond this limit through additional business models. See Expanded Roof-Mounted Solar Program (ERSP) .

Guidebook

The DOE published the “Guidebook on Net Metering in the Philippines” on 22 April 2022, providing comprehensive guidelines, standards, and procedures for all net-metering arrangements — from offer to after-sales services by installers and practitioners [PEP 2023-2050 Vol. II, p.44, 2023].

Program Uptake

As of December 2023 [PEP 2023-2050 Vol. II, p.44, 2023]:

• 11,707 end-users registered under the Net Metering Program
• Total rated capacity: 101.5 MWp

Relationship to GEOP and ERSP

Net Metering serves consumers at the smallest scale (up to 100 kW), while the Green Energy Option Program (GEOP) serves consumers at 100 kW and above who want to source from a dedicated RE supplier (rather than producing their own). The ERSP extends net-metering-style options for rooftop solar beyond 100 kW through lease, peer-to-peer, and contingency supply models. See Green Energy Option Program (GEOP) and Expanded Roof-Mounted Solar Program (ERSP) .