Net Metering: Policy & Installation Guide
If you installed solar panels in the Philippines without applying for Net Metering, you are likely throwing away 30% to 50% of your potential savings.
Without Net Metering, any excess power your panels generate at 1:00 PM—when your house is empty and the sun is blazing—vanishes. You either lose it because your inverter throttles down (Zero Export), or worse, you give it to the grid for free while your old meter charges you for it.
In late 2025, the rules have changed for the better. The Energy Regulatory Commission (ERC) has released new resolutions that make the process friendlier, but the bureaucratic hurdles at the LGU level remain.
Here is your no-nonsense guide to navigating Net Metering policy, costs, and installation steps in the Philippine setting.
What is Net Metering in 2025?
Net Metering is a non-fiscal incentive authorized under Republic Act 9513 (The Renewable Energy Act of 2008). It allows homeowners with systems up to 100kW to export excess electricity to the grid in exchange for bill credits.
The 2025 Policy Updates (ERC Resolution No. 15)
If you looked into this years ago, you might remember expiring credits or rigid rules. As of late 2025, the ERC has updated the game:
Indefinite Banking: You can now "bank" your excess credits indefinitely. They no longer expire at the end of the year. If you generate huge surplus in May (summer), you can use those credits to offset your bill in December (rainy season).
Transferability: If you sell your house, you can now transfer your accumulated credits to the new owner, provided you have the proper legal documentation.
Voluntary REC Meter: In the past, you were forced to pay for a second "REC Meter" to measure gross generation. Now, this is largely voluntary for smaller residential systems, saving you Php 5,000–8,000 in upfront costs.
For a deeper dive into the legal framework, read our breakdown of the ERC net metering regulations.
The "Net Billing" Reality Check
Before you apply, you must understand how you get paid. The Philippines uses a Net Billing scheme, not a 1-for-1 exchange.
You Buy Power at the Retail Rate (e.g., Php 12.00/kWh).
You Sell Power at the Blended Generation Rate (e.g., Php 6.00 – Php 8.00/kWh).
Why the difference? When you export power, you aren't paying for the distribution wires, metering, or system loss charges. You are paid strictly for the energy you provide.
Does this kill the ROI? No. It just means you should prioritize "self-consumption" (using power while the sun shines) over exporting. However, the credits are still vital for wiping out your weekend or nighttime usage. To understand exactly how these pesos add up, check our guide on calculating net metering credits.
Step-by-Step Installation & Application Guide
The process is a relay race between three entities: Your Distribution Utility (Meralco/Coop), your LGU (City Hall), and the ERC.
Typical Timeline: 3 to 6 months.
Step 1: The Distribution Impact Study (DIS)
Before you even install the bidirectional meter, the utility needs to know if their grid can handle your power.
Action: Submit a letter of intent and your electrical plan to the utility.
Cost: Meralco has waived this for many residential accounts, but Electric Cooperatives (like BENECO or PELCO) may charge between Php 1,500 and Php 5,000 for the study.
The Risk: If your local transformer is "saturated" (too many solar neighbors), they may ask you to pay for a transformer upgrade (Php 50k+). This is rare but possible.
Step 2: The "Yellow Card" & Service Entrance Upgrade
Once the DIS is approved, you will get a "Yellow Card" (Meralco term) or a technical notice.
Requirement: You must install a Service Disconnect Switch (a visible lever outside your gate) so linemen can manually cut your solar power during maintenance.
Cost: Expect to pay your installer Php 8,000 to Php 20,000 for the labor, grounding rod, and materials to upgrade your service entrance to net metering standards.
Step 3: The LGU "CFEI" Nightmare
This is the hardest part. You need a Certificate of Final Electrical Inspection (CFEI) from your City Hall to prove your installation is safe.
The Trap: City Hall often requires your original Building Permit, updated Tax Declaration (Amilyar), and a new Electrical Permit. If your house has illegal extensions, this can open a can of worms.
Warning: Do not try to fake this step. Operating without a CFEI voids your fire insurance. See our article on the risks of skipping LGU permits.
Step 4: The ERC Certificate of Compliance (COC)
You need a license to be a "power plant."
Action: Pay the Php 1,500 COC fee to the ERC.
Good News: The ERC has streamlined this significantly in 2025, and your utility usually handles the filing once you pay the fee.
Step 5: Meter Replacement
Once all documents are submitted, the utility will schedule the meter change.
The Swap: They replace your old meter with a Bi-Directional Meter that reads both Import and Export.
The "Check" Meter: Some coops (like PELCO or SOCOTECO) still require a separate meter to measure total solar production, costing an extra Php 14,000+. Meralco customers usually don't pay for the meter itself, just the application fees.
For Meralco-specific nuances, refer to our Meralco net metering guide.
The "Hidden" Costs & Coop Hurdles
If you live outside Metro Manila, your experience will vary wildly depending on your Electric Cooperative (EC).
Non-Standard Fees: While Meralco is standardized, some ECs charge for "inspection trips," "meter socket adaptors," or "administrative processing" that can total Php 10,000 to Php 20,000.
Lack of Knowledge: You might be the first person in your barangay to apply. You may need to print the ERC resolutions to prove to the coop manager that you are legally allowed to connect.
Transformer Upgrades: In rural areas with weak infrastructure (single-phase lines), adding a 5kW system might trigger a voltage imbalance, forcing you to buy your own transformer.
Is It Worth the Headache?
After reading about the fees and the 6-month wait, you might wonder if you should just stay "Zero Export."
The Answer: Yes, it is worth it.
Inflation Shield: As electricity rates rise, your export rate (the blended generation charge) also rises. Your savings grow with inflation.
Faster Payback: A 5kW system with Net Metering typically pays for itself in 4.5 to 5 years. Without Net Metering (wasted export), that extends to 7+ years.
Property Value: A net-metered home is a premium asset. It has a legal, income-generating utility connection.
For a detailed breakdown of the numbers, look at our 2025 Solar ROI analysis.
Conclusion
Net Metering in 2025 is a test of patience, not technology. The policy is solid, the financial math works, and the equipment is reliable. The challenge lies in the paperwork.
Your best defense is to hire an installer who has a dedicated Liaison Officer. Do not accept a "cheapest price" quote that leaves you to handle the permitting alone. In the Philippines, you are paying for the service, not just the solar panels.
Next Step: If you are ready to start, ask your installer for a breakdown of their "processing fees" vs. "government fees." Knowing the difference will save you from hidden charges later on.