Philippine Energy Policy Wiki

DC2023-12-0035 (ERSP Policy)

Status
operative
Confidence
high
Effective date
2024-01
Parent law
ra-9513

Document: Department Circular No. DC2023-12-0035 Title: Prescribing the Policy and General Framework on the Expanded Roof-Mounted Solar Program in the Philippines Issued: December 14, 2023 Issuing authority: DOE Secretary Raphael P.M. Lotilla Pages: 8 (image-based PDF; OCR via tesseract — PDF was double-scanned; cleaned version merges both scan sets)

What This Document Does

Establishes the Expanded Roof-Mounted Solar Program (ERSP), a policy framework for roof-mounted solar PV facilities above 100 kWp that extends beyond the Net Metering Program’s ceiling. Defines three commercial business models and assigns regulatory responsibilities to the TNP, DUs, RSPs, and Market Operator.

Key Provisions

Section 3 — Coverage. Applies to roof-mounted solar PV facilities with capacity above 100 kWp, for own-use and/or export. ERSP is distinct from (and complementary to) Net Metering, DER Program, and Green Energy Option Program. Applies to both on-grid and off-grid areas.

Section 4 — Scope. Covers Electricity End-Users (captive, DCCs, contestable customers with RSF, and government entities), economic zone developers, RE Developers/GenCos, DUs/ECs, Market Operator, Market Governance, RSPs, TNP, System Operator, and RSF owners/operators.

Section 5 — Key Definitions.

  • Prosumer: Electricity End-User with a Self-Generation RSF above 100 kW who can export energy
  • RSP (Roof-Mounted Solar Provider): Entity that installs, operates, and maintains an RSF; an RSP with a Lease-to-Generate RSF is classified as both a Generation Company and an RE Developer
  • Contiguous Areas: Subdivisions, business districts, SEZs, malls, mixed-use complexes, and similar bounded areas with measurable electricity supply

Section 6 — Three ERSP Business Models.

  1. Supply Contingency Option — Voluntary. Electricity End-Users with Self-Generation RSF above 100 kW may export energy only during grid supply shortages (Yellow or Red Alert situations per PGC). End-user bears meter upgrade costs; Network Service Provider bears connection costs. Export agreement with DU or TNP required; ERC determines compensation.

  2. Lease-to-Generate Option — RSP leases building/establishment rooftops in contiguous areas; installs, owns, and operates the RSF as a Grid-connected Generating Plant or Embedded Generator. All energy must be exported to DU or Grid. Sale to host DU via PSA subject to CSP rules. RSP must secure a Solar Energy Operating Contract (SEOC) from the DOE (per DC2019-10-0013 or the Revised Omnibus RE Guidelines) before installation.

  3. Restricted Peer-to-Peer Energy Trading — Within contiguous areas only; RSPs, Prosumers, and Consumers buy/sell electricity among themselves. RSP operates the P2P trading platform; aggregated excess may be sold to host DU or Grid. Supply contracts between RSPs/Prosumers/Consumers are non-regulated (similar to retail market). DOE must be notified of all P2P arrangements.

Section 7 — General Provisions. All RSPs must secure applicable permits and conduct DIS (by DU) or SIS (by TNP) before construction. All RSF connection facilities must follow PDC, PGC, and DSOAR. Safety: PEC standards on Solar PV Systems. Government agencies may participate in ERSP as part of GEMP compliance. RECs from ERSP RSFs allocated per RPS Rules.

Section 8 — Duties and Responsibilities.

  • TNP: conduct SIS for Grid-connected RSF >20 MW capacity (Luzon) / >5 MW (Visayas/Mindanao); include ERSP impacts in annual TDP
  • DUs: conduct DIS/DAS; include ERSP capacity in annual DDP/PSPP; act as default Metering Services Provider for DU-connected RSFs; conduct further studies for long-term planning input to DOE
  • RSPs: submit annual reports to DOE by January 30; comply with PGC, PDC, DSOAR, and PEC
  • Market Operator: review/propose amendments to WESM Rules, REM Rules, and Retail Rules for ERSP integration; conduct WESM price impact studies as directed by DOE

Section 9 — Regulatory Support. ERC to issue pricing methodology and interconnection standards for all three ERSP business models within 60 calendar days of effectivity; review/amend ERSP pricing periodically.

Section 12 — Effectivity. Immediately upon publication in 2 newspapers.

Policy Significance

The Lease-to-Generate model creates a new class of market participant: the RSP-as-GenCo, which must obtain a SEOC from DOE and comply with CSP for DU supply contracts. The P2P model’s non-regulated contract structure is notable — it removes ERC from the supply agreement between RSPs and consumers, treating intra-contiguous-area solar trading more like private retail transactions than regulated utility service.

Pages Expanded

Full text: Cleaned copy