Guidebook on Net-Metering in the Philippines

Introduction

In the Philippines, the concept of Net-Metering was introduced in the Renewable Energy Act of 2008 (RA 9513). The Net-Metering Program is a non-fiscal strategy to promote the utilization of renewable energy (RE) in the country. It was designed as an incentive scheme to encourage Electricity End-users to participate in the generation of electricity from renewable sources to meet part of its electricity requirements.

Net-Metering is a scheme that allows Electricity End-users to build an RE facility to generate electricity primarily for own-use and when there is unused electricity generated, to sell to the grid.

By virtue of the Energy Regulatory Commission (ERC) Resolution 09 Series of 2013, the Rules Enabling the Net-Metering Program for Renewable Energy, the Net-Metering activities were set into motion. A Net-Metering Reference Guide was subsequently published in 2013 by the DOE with support from the GIZ to facilitate the information dissemination of the Net-Metering Program.

The most common RE facility under the Net-Metering program is the rooftop solar photovoltaics, generally referred to as a kind of distributed generation or distributed energy resources (DER).

The Department of Energy (DOE) is the national policy making agency mandated to promote the development of indigenous and RE resources. The recent DOE Circular No. DC 2020-10-0022 described Net-Metering where the Qualified End-users (QEs), under normal circumstances, will not be a net generator or producer at the end of each calendar year. The DOE Circular moreover expanded the Net-Metering program to include both the on-grid and off-grid areas in the country.

Since the promulgation of the Net-Metering Rules in 2013, there has been a steady increase in Net-Metering participants. Further developments relating to implementation has taken place including the introduction of department circulars from the Department of Energy (DOE) – the national policy making agency mandated to promote the development of indigenous and RE sources – and several ERC rules and resolutions. The COVID-19 pandemic in 2020, however dampened progress on Net-Metering activities. Now that the economy and the industry are starting to embrace the “new normal” and focused on efforts towards recovery, the DOE, National Renewable Energy Board (NREB) and the ERC are in the frontlines of finding solutions to the barriers and challenges in advancing the implementation of the Net-Metering Program in the country.

In DOE Department Circular No. DC 2020-10-0022 known as “Prescribing the Policies to Enhance the Net-Metering Program for Renewable Energy Systems”, described Net-Metering where the Qualified End-users (QEs), under normal circumstances, will not be a net generator or producer at the end of each calendar year. It likewise expanded the Net-Metering program to include both the on-grid and off-grid areas in the country. Among the provisions of the department circular is the development of a Net-Metering Guidebook. The Guidebook aims to prescribe the guidelines and procedures for Net-Metering arrangements from the offer to after-sales services by the Net-Metering installers and practitioners as well as prescribing the minimum standards for all Net-Metering installations, in collaborations with all concerned government agencies. The Guidebook is likewise intended to assist the electricity end-users who are interested to participate in the Net-Metering Program.

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Laws and Issuances

Republic Act No. 9513

Approved on December 16, 2008: An Act promoting the development, utilization and commercialization of renewable energy resources and for other purposes

Republic Act No. 9367

Approved on January 12, 2007: An act to direct the use of biofuels, establishing for this purpose the biofuel program, appropriating funds therefor, and for other purposes

Department Orders

Department Circulars