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Rig Republic of the Philippines
sees) DEPARTMENT OF ENERGY
4h °
* a £ (Kagawaran ng Enerhiya)

BAGONG PILIPINAS

DEPARTMENT CIRCULAR NO. DC 2@2/-t&- od“5

PRESCRIBING FURTHER POLICIES TO ENHANCE THE NET-METERING
PROGRAM FOR RENEWABLE ENERGY SYSTEMS AMENDING, FOR THIS
PURPOSE, DEPARTMENT CIRCULAR (DC) NO. DC2020-10-0022

WHEREAS, Republic Act (RA) No. 9136, otherwise known as the “Electric Power
Industry Reform Act of 2001” or “EPIRA”, declares the policy of the State to, among
others: (a) assure socially and environmentally compatible energy sources and
infrastructure; and (b) promote the utilization of indigenous and new and renewable
energy (RE) resources in power generation in order to reduce dependence on imported
energy;

WHEREAS, RA 9513, otherwise known as the “Renewable Energy Act of 2008” or the
“RE Act”, declares the policy of the State to accelerate the exploration and development
of RE resources including hybrid systems, to achieve self-reliance, strategies to reduce
the country’s dependence on fossil fuels and thereby minimize the country’s exposure
to price fluctuations in the international markets, the effects of which spiral down to
almost all sectors of the economy;

WHEREAS, the RE Act further declares the policy of the State to increase the utilization
of RE by institutionalizing the development of national and local capabilities in the use of
RE Systems, and promoting their efficient and cost-effective commercial application by
providing fiscal and non-fiscal incentives;

WHEREAS, pursuant to Section 10 of the RE Act, subject to technical considerations
and without discrimination and upon request by distribution end-users, the distribution
utilities (DUs) shall enter into net-metering agreements with qualified end-users who will
be installing the RE System, and the Energy Regulatory Commission (ERC), DUs and
all relevant parties, among others, are mandated to provide the mechanisms for the
physical connection and commercial arrangements necessary to ensure the success of
net-metering, consistent with the Grid and Distribution Codes;

WHEREAS, Section 7 of the Implementing Rules and Regulations of the RE Act (IRR),
or the Department of Energy (DOE) Department Circular (DC) No. DC2009-05-0008,
provides among others, the purpose and the mandate of the DUs under this program;

WHEREAS, on 27 May 2013, the ERC issued Resolution No. 9, Series of 2013, titled “A
Resolution Adopting the Rules Enabling the Net-Metering Program for Renewable
Energy’ or the “Net-Metering Rules” pursuant to Section 10 of the RE Act and Section 7
of its IRR;

WHEREAS, on 22 December 2017, the DOE issued DC No. DC2017-12-0015, titled
“Promulgating the Rules and Guidelines Governing the Establishment of the Renewable
Portfolio Standards for On-Grid Areas,” or the “RPS On-Grid Rules” whereby energy
produced or generated by Eligible RE Facilities under Net-Metering Program are eligible

Energy Center, Rizal Drive cor. 34th Street, Bonifacio Global City, Taguig City, Philippines 1632
Tel. No. (Trunkline) (632) 8479-2900

Website: http://www.doe.gov.ph; E-mail: infocenter@doe.gov.ph
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DC on Prescribing Further Policies to Enhance the Net-Metering Program for Renewable Energy Systems

Amending for the Purpose DC No. DC2020-10-0022
Page 2 of 3

to earn RE Certificates, which shall be credited as one of the mechanisms that the DUs
may apply as part of their compliance with their obligations as Mandated Participants
under the RPS On-Grid Rules;

WHEREAS, on 16 August 2019, the ERC issued Resolution No. 06, Series of 2019,
titled “Adopting the Amendments to the Rules Enabling the Net-Metering Program for
Renewable Energy” or the “Amended Net-Metering Rules” to, among others, address
the issues on the applicability of the lifeline rates to Qualified End-Users and whether the
mechanism of accumulating the credits of net exports on the customer bill is reasonable:

WHEREAS, on 22 October 2020, the DOE issued DC No. DC2020-10-0022, titled
“Prescribing the Policies to Enhance the Net-Metering Program for Renewable Energy
Systems,”

WHEREAS, the DOE received various concerns from stakeholders, which impede the
implementation of Net-Metering Program;

WHEREAS, on 16 February 2024, the DOE conducted virtual public consultation on the
proposed amendments to DC No. DC2020-10-0022, titled “Prescribing the Policies to
Enhance the Net-Metering Program for Renewable Energy Systems’ in order to address
the stakeholders’ issues and concerns and to increase the utilization of RE through the
Net-Metering Program;

NOW, THEREFORE, in consideration of the foregoing, the DOE hereby issues and
promulgates the following policies for the enhancements and effective implementation
of the Net-Metering Program:

Section 1. Amendments. The following Sections of DC No. DC2020-10-0022 are
hereby amended to read as follows:

a. Section 3, Scope:

“Section 3. Scope. This Circular prescribes the following policies and guidelines
to provide enhancements to the Net-Metering Program in support of ERC
Resolution No. 06, Series of 2019:

(a) Application to Off-Grid or Island Grid Systems;

(b) Publication by the DUs in their respective websites of the Net-Metering
Program, including the hosting capacities of their Distribution Systems
for Net-Metering purposes; and

(c) Development of a Net-Metering Guidebook that prescribes the
guidelines and procedures for Net-Metering arrangements, from offer to
after-sales services by Net-Metering installers and service providers, as
well as prescribing the minimum standards for all Net-Metering
installations, in collaboration with all concerned government agencies.”

b. Section 4, Definition of Terms, particularly, the definition of Net-Metering Credit:

“Net-Metering Credit” refers to an amount in peso from net energy exported
into the Distribution System by a Qualified End-User.
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DC on Prescribing Further Policies to Enhance the Net-Metering Program for Renewable Energy Systems
Amending for the Purpose DC No. DC2020-10-0022
Page 3 of 3

c. Section 5, Threshold Capacity for Net-Metering Installations:

“Section 5. Any Qualified End-User may install Net-Metering facility subject to
the capacity limit as provided for in RA 9513.”

d. Under Section 6, Banking of Net-Metering Credits:

“Section 6. All Net-Metering Credits may be banked, rolled-over and credited
to the Qualified End-User’s electricity consumption based on current and
succeeding billing periods, as appropriate.”

Section 2. RE Certificate (REC) Meter for Net-Metering. The REC meter shall no
longer be required subsequent to the ERC’s issuance of a methodology for computing
or estimating the energy or generation output of the Net-Metering facility.

Section 3. Responsibilities of the ERC and Concerned Stakeholders. The ERC shall
provide regulatory support for the implementation of this Circular. All concerned
stakeholders shall ensure the timely processing of applications for, and connection of
facilities for Net-Metering of Qualified End-Users.

Section 4. Separability Clause. If any provision of this DC is declared invalid or
unconstitutional, the other provisions not affected thereby shall remain valid and
subsisting.

Section 5. Repealing Clause. Any prior issuances, orders or circulars inconsistent with
this DC are hereby repealed, amended or modified accordingly.

Section 6. Effectivity. This DC shall take effect fifteen (15) days after its publication in
at least two (2) newspapers of general circulation. A copy of this DC shall be filed with
the University of the Philippines Law Center — Office of the National Administrative

Register.
Issued this AUG 19 2024 at DOE, Energy Center, Rizal Drive cor. 34" Street,
Bonifacio Global City, Taguig City, Metro Manila.

RAPHAEL P.M. LOTILLA
ecretary :