=== dc2025-10-0020-pages-1.ppm ===
Republic of the Philippines
DEPARTMENT OF ENERGY

(Kagawaran ng Enerhiya)

DEPARTMENT CIRCULAR NO. DC 2025 - JD - 00 <b
a

SUPPLEMENTAL POLICY TO THE NET-METERING PROGRAM INTEGRATING
RENEWABLE ENERGY CERTIFICATE TRADING AND MULTI-SITE AND
AGGREGATE NET-METERING TO ENHANCE PARTICIPANT BENEFITS AND
MARKET ACCESS

WHEREAS, Republic Act (RA) No. 9136, otherwise known as the “Electric Power
Industry Reform Act of 2001” (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 No. 9513, otherwise known as the “Renewable Energy Act of 2008”
(RE Act), declares the policy of the State to accelerate the exploration and
development of RE resources, including hybrid systems, to achieve energy self-
reliance, through the adoption of sustainable energy development 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;

WHEREAS, on 22 December 2017, the Department of Energy (DOE) issued the
Department Circular (DC) No. DC2017-12-0015 entitled, “Promulgating the Rules and
Guidelines Governing the Establishment of the Renewable Portfolio Standards for On-
Grid Areas” (RPS On-Grid Rules), which provides that energy generated by Eligible
RE Facilities under the Net-Metering Program is eligible to earn RE Certificates (REC),
which shall be credited as one of the mechanisms that DUs may apply toward
compliance with their obligations as Mandated Participants under the RPS On-Grid
Rules;

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

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; Email: infocenter@doe.gov.ph
=== dc2025-10-0020-pages-2.ppm ===
DC on Supplemental Policy to the Net-Metering Program
Page 2 of 3

WHEREAS, on 19 August 2024, the DOE issued the DC No. DC2024-08-0025,
entitled “Prescribing Further Policies to Enhance the Net-Metering Program for
Renewable Energy Systems Amending, for this Purpose, Department Circular (DC)
No. DC2020-10-0020”" to address issues on the banking of Net-Metering Credits and
the REC meter;

WHEREAS, on 27 August 2025, the Energy Regulatory Commission (ERC) issued
the Resolution No. 15, Series of 2025, entitled “A Resolution Amending ERC
Resolution No. 6, Series of 2019, Entitled ‘A Resolution Adopting the Amendments to
the Rules Enabling the Net-Metering Program for Renewable Energy” to align with
DOE policies and introduce key amendments strengthening consumer protection and
streamlining processes;

WHEREAS, the DOE identified various issues and concerns regarding barriers to
participation and REC ownership under the Net-Metering Program; and

WHEREAS, on 13 May 2025, the DOE conducted public consultation through
Microsoft Teams and Facebook Live on the proposed supplemental policy for the Net-
Metering Program to address these issues and concerns and to increase end-user
participation in achieving RE targets.

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

Section 1. REC Ownership. In relation to the implementation of Section 15 of the
RPS On-Grid Rules, the RECs from Net-Metering arrangements shall be allocated as
follows:

(a) | RECs generated from own use under Net-Metering arrangements shall
be allocated to the Qualified End-User.

(6) RECs generated from exported energy under Net-Metering
arrangements shall be allocated to the DU.

Exported energy shall be included in the Net Electricity Sales of the DU
for the calculation of its RPS requirement.

Section 2. Trading. RECs, whether from own use or exported energy under Net-
Metering arrangements, may be sold or traded through the Renewable Energy Market
(REM) or other equivalent markets as may be specified by the DOE through the
issuance of subsequent policies and guidelines.

Section 3. Multi-Site and Aggregate Net-Metering.

3.1. A Qualified End-User may share or distribute available Net-Metering Credits to
other electricity accounts registered under the same Qualified End-User within
the same DU franchise area.

3.2. _DUs shall enable allocation of Net Metering Credits between or among multiple
electricity accounts using appropriate technology, which may include advanced
metering infrastructure (AMI) and digital tracking systems.
=== dc2025-10-0020-pages-3.ppm ===
DC on Supplemental Policy to the Net-Metering Program
Page 3 of 3

For purposes of this section, “Net-Metering Credit” refers to an amount in peso from
net energy exported into the Distribution System by a Qualified End-User.

Section 4. Regulatory Support. The ERC is enjoined to issue necessary regulatory
provisions for the implementation of the abovementioned policies.

Section 5. Separability Clause. If any provision of this Circular is declared invalid or
unconstitutional, the other provisions not affected thereby shall remain valid and
subsisting.

Section 6. Repealing Clause. Any prior issuances, orders or circulars inconsistent
with this Circular are hereby repealed, amended or modified accordingly.

Section 7. Effectivity. This Circular shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation. Copies of this Circular
shall be filed with the University of the Philippines Law Center — Office of the National
Administrative Register.

-
Issued this OC] 0 3 2025 at DOE, Energy Center, Rizal Drive corner 34"
Street, Bonifacio Global City, Taguig City.

S. GARIN
Secretary