Understanding Solar Net Metering in the Philippines

Net metering lets a household or business that generates its own renewable electricity, usually from rooftop solar, send surplus power to its distribution utility and get peso credits on its electricity bill. In the Philippines it is open to customers in good credit standing with a renewable energy system of up to 100 kW, with or without batteries.

The key detail most people miss: exported energy is not credited at the full retail rate you pay. Your utility credits each exported kWh at its monthly generation charge based on its blended generation cost, excluding other generation adjustments. That rate differs by utility and changes every month, so no fixed national “export rate” exists. Credits reduce your bill and roll over to later months, but you can’t cash them out.

This guide covers the legal basis, the recent rule changes, how credits are calculated, the metering, and how to apply with Meralco or another utility.

The legal basis for net metering

Republic Act No. 9513 (Renewable Energy Act of 2008)

The Renewable Energy Act introduced net metering. Section 4 defines it as a system in which a distribution grid user with a two-way connection “is only charged for his net electricity consumption and is credited for any overall contribution to the electricity grid.”

Section 10 requires distribution utilities, “subject to technical considerations and without discrimination and upon request,” to enter into net-metering agreements with qualified end-users who install renewable energy systems. It directed the Energy Regulatory Commission (ERC) to set the interconnection standards, pricing methodology and commercial arrangements.

The ERC net-metering rules and their amendments

Who can apply

The DOE and Meralco describe these basic eligibility conditions:

• You are a customer of a distribution utility (a private utility such as Meralco, Visayan Electric or Davao Light, or an electric cooperative).
• Your renewable energy system is 100 kW or smaller. Meralco states this as 100 kWp for solar PV.
• At Meralco, the account must be in the applicant’s name and in good standing, with no unpaid balance.
• The system can include battery storage.

Systems larger than 100 kW fall under the ERC’s separate rules for distributed energy resources (DER), not the residential net-metering program. They are outside the scope of this guide.

Your local grid can limit how much you connect. Meralco publishes indicative hosting capacities for single-phase distribution transformers, for example about 7 kW of solar on a 10 kVA or 15 kVA transformer and 10 kW on a 25 kVA transformer. The final figure depends on conditions on your line. Meralco assesses this in its Distribution Impact Study. If your system is larger than what the transformer can host, upgrades may be needed.

How exported energy is credited

Meralco explains the bill calculation this way:

Net amount payable = amount for imported energy
                     − amount for exported energy
                     − any credit carried over from the previous month

Where:

Amount for exported energy = exported kWh × that month's export credit rate (₱/kWh)
Export credit rate         = the utility's generation charge based on its blended
                             generation cost, excluding other generation adjustments

A few points follow from this:

• Imports are billed normally. Energy you draw from the grid is charged at your full applicable rates: generation, transmission, distribution, taxes and so on.
• Exports earn less per kWh than imports cost. The export credit covers roughly the generation part of the bill, not the whole retail rate. So each kWh of solar you use yourself is usually worth more than each kWh you export.
• Credits roll over. The ERC’s 2025 amended rules allow credits to be banked and applied to current and future bills. Meralco says unused credits carry over but cannot be converted to cash.
• Credits can move with the property. Under the 2025 rules, credits can be transferred to a new owner, subject to conditions such as a conforme letter from the original owner.
• Subsidies use total consumption. Meralco notes that eligibility for subsidies such as the lifeline and senior citizen discounts is based on total consumption, including the solar energy you use directly.

To find your export credit rate, look for the export kWh and credit lines on your net-metering bill, or check your utility’s published monthly rates.

Worked example: how the credit shows up on a bill

Use the solar savings calculator to try your own numbers, including different shares of self-consumed versus exported solar, and the solar payback calculator to see how the export rate affects payback. If you’re unsure how your bill is built up, see how to calculate your electricity bill.

Metering: bi-directional and REC meters

Bi-directional meter. Required for net metering. It records imported and exported energy separately. Meralco warns that without one, and without enrolling in net metering, your solar output may be recorded as imported energy and raise your bill. The utility provides and installs the meter. If your existing meter can’t measure both directions, Meralco says the charge for the difference in meter cost does not exceed ₱3,000 for residential customers, citing an ERC advisory dated 22 September 2025.

REC meter. A Renewable Energy Certificate (REC) meter measures how much electricity your system generates, as opposed to how much you export. Under the 2025 amended rules it is optional. If you waive it, the utility estimates your generation using an ERC-prescribed formula. At Meralco, waiving it requires a signed and notarized affidavit and waiver.

Why generation is measured at all: RECs and the RPS

Section 10 of RA 9513 gives the distribution utility the right to any Renewable Energy Certificate (REC) from a net-metering arrangement. The utility can use these certificates to meet its obligations under the Renewable Portfolio Standards (RPS). The Act defines the RPS as a market-based policy that requires electricity suppliers to source an agreed portion of their energy supply from eligible renewable energy resources. This is why your generation is either metered or, if you waive the REC meter, estimated with the ERC formula for RPS purposes. You don’t sell or receive these certificates yourself under net metering.

How to apply with Meralco

Meralco’s net-metering page sets out six stages. Your installer often handles much of the paperwork, but the account holder remains the applicant.

1. Application. Submit the Net-Metering Application Form for Solar PV Systems at a Meralco Business Center (walk-in or by appointment). Business customers can apply by email through their account managers. Systems with several panel, inverter or battery models need an Annex Sheet. A representative needs a valid ID and an authorization. Meralco checks eligibility and, if you won’t install a REC meter, discusses the setup and billing implications.
2. Evaluation. Meralco runs a Distribution Impact Study to confirm the grid can safely take your system. For systems up to 7 kWp this uses engineering computations. Larger systems may need power quality measurements and can take longer. If upgrades are needed, a Distribution Asset Study follows. Meralco also issues a yellow card, which your LGU may require before issuing the CFEI.
3. Inspection. Meralco inspects your service entrance against its standards. Once it complies, Meralco issues the Net-Metering Agreement and Fixed Asset Boundary Document for signature.
4. Completion. Submit the LGU’s Certificate of Final Electrical Inspection (CFEI), the signed agreement and boundary document (notarization not mandatory, e-signatures allowed), the notarized affidavit and waiver if you skip the REC meter, and any meter-cost charge. You’ll also pay the ₱1,500 ERC Certificate of Compliance application fee.
5. Energization and commissioning. Meralco installs the bi-directional meter and tests the system. The tests include checking that it disconnects within 2 seconds during an outage and reconnects only 10 minutes after power returns. A special meter reading marks the start of net-metering service.
6. Transmittal to the ERC. Meralco files your documents with the ERC, which issues the Certificate of Compliance (COC) that completes the process.

Meralco lists its hotline as (02) 16211 for residential customers and 16210 for business customers.

If you’re not a Meralco customer

The ERC net-metering rules apply to all distribution utilities, including electric cooperatives, but each one runs its own application process, forms and offices. The 2025 amended rules require utilities to publish their net-metering procedures and application forms on their websites. Visayan Electric and Davao Light, for example, posted notices about the ERC’s September 2025 advisory along with their own contact details. Start with your utility’s website or customer service office, ask for the net-metering application checklist, and ask how long each step currently takes. We’ve collected the published steps, documents and fees for Meralco, Visayan Electric, Davao Light and other utilities and cooperatives in net metering by electric company.

Common mistakes to avoid

• Exporting before you’re approved. Until the bi-directional meter is installed, exported solar may be recorded as consumption.
• Sizing for export. Because exports earn less than imports cost, a system sized well beyond your daytime use may pay back more slowly than expected. See how many solar panels a Philippine home needs.
• Ignoring transformer capacity. Ask the installer to check with the utility before finalising system size.
• Losing paperwork. Keep copies of your agreement, CFEI, COC and meter details. You’ll need them if you sell the property and transfer credits.

The bottom line

Net metering turns your surplus solar into bill credits, but those credits are valued at your utility’s generation-cost-based rate, not the full retail price, so the biggest savings usually come from using solar power yourself. The legal basis is RA 9513 and the ERC’s net-metering rules, most recently amended in 2025, with 2026 measures aimed at faster permits and processing. Timelines and fees are still being revised, so confirm the current requirements with your distribution utility before you sign an installation contract. Then follow its steps in order. For the full journey from quote to switch-on, see our residential solar installation guide, and compare installers on our compare solar quotes page.