Meralco Net Metering: 5 Setup Tips
There is a running joke among Filipino solar adopters: "Installing the panels took two days. Getting Meralco to turn them on took six months."
While Meralco has significantly streamlined its process in 2024 and 2025, applying for Net Metering remains a bureaucracy-heavy rite of passage. It involves technical inspections, government permits, and a lot of waiting.
However, it is the only legal way to sell your excess solar power back to the grid. Without it, your extra energy disappears into thin air (or worse, you get flagged for unauthorized generation).
If you are about to start your application, here are 5 blunt tips to navigate the maze without losing your mind—or your savings.
1. Clean Up Your Wiring Before They Look
When you apply for Net Metering, you are essentially inviting a Meralco engineer to inspect your entire service entrance with a magnifying glass.
They are not just checking the solar panels; they are checking everything.
Is your service entrance wire the correct gauge?
Is your meter height compliant (standard is 1.5m to 1.8m)?
Do you have a "flying connection" or an illegal tap you forgot about?
The "Yellow Card" Trap:
The first major hurdle is getting the Yellow Card (Technical Evaluation). If Meralco finds your grounding rod is missing or your breaker box is substandard, they will issue a "Correction Order." You cannot proceed until you fix these issues.
Tip: Ask your installer to perform a "pre-inspection" audit of your existing electrical service before submitting the application. Fix the sins of the past now so you pass the Meralco inspection on the first try.
For specific technical standards, refer to our breakdown of Meralco connection regulations.
2. Don’t Treat LGU Permits as "Optional"
In the past, many homeowners installed "guerrilla solar"—panels up, no permits, no questions asked. You cannot do this with Net Metering.
Meralco strictly requires a Certificate of Final Electrical Inspection (CFEI). You can only get this from your City Hall (LGU). And you can only get a CFEI if you applied for an Electrical Permit before installation.
If you built your system without a permit, you will have to pay "as-built" penalties to your City Hall to regularize the structure. This can cost thousands of pesos and weeks of delay.
Tip: Ensure your installer includes the LGU permitting processing in their contract. If they tell you "permits are just a suggestion," find a new installer.
Read more about the risks in our article on skipping LGU permits.
3. Size for Self-Consumption, Not Export
This is the biggest financial mistake homeowners make. They think, "I'll install a huge 10kW system, sell a lot to Meralco, and make a profit!"
The Reality of Credits:
Meralco does not buy your power at the same price they sell it to you.
Retail Rate (What you pay): ~₱12.00 per kWh.
Export Rate (What they pay you): ~₱5.00 to ₱6.00 per kWh (Generation Charge only).
This means you need to export 2 kWh just to offset 1 kWh of nighttime usage. If you oversize your system, you are generating cheap power for Meralco while paying full price for your equipment.
Tip: The sweet spot is a system that covers your daytime usage perfectly, with only a little bit of overflow. Net Metering should be a bonus, not your main ROI strategy.
Check our guide on how Net Metering credits are actually calculated to manage your expectations.
4. Prepare for the "Bill Deposit" Shock
Midway through the process, you will receive a letter from Meralco asking you to update your Bill Deposit.
The Bill Deposit is equivalent to your estimated 1-month average bill. Meralco holds this as security. When you apply for Net Metering, they review your load.
Scenario: Years ago, you applied for a connection declaring only lights and a fan. Today, you have 3 air conditioners.
The Result: Meralco will realize your deposit is outdated. They will ask you to pay the difference to match your current load (e.g., topping up an extra ₱10,000 or ₱20,000).
This often catches homeowners off guard. "I thought I was paying for a meter, why am I paying a deposit?"
Tip: This is not a fee; it’s a deposit. You get it back (with interest) if you terminate your service. But you need to budget for the cash flow hit upfront.
See our full guide to Meralco Net Metering costs for a list of other potential fees.
5. Be Patient with the "Reference Number" Game
The Net Metering timeline is not linear. It stops and starts.
DIS (Distribution Impact Study): Meralco checks if the grid can handle your export (2–4 weeks).
Yellow Card: Technical inspection (1–2 weeks).
LGU CFEI: City Hall processing (2–4 weeks).
Meter Installation: The final step (1–2 weeks).
Total realistic time? 3 to 4 months. During this time, your system must remain "Zero Export" or turned off to avoid penalties.
Tip: Get your Reference Number (SIN or ARN) immediately upon application. Follow up weekly. If you stay silent, your papers will sit at the bottom of the pile.
For a broader look at how this delay affects your payback period, use our solar ROI calculator.
Conclusion
Meralco Net Metering is worth the headache. Once that bi-directional meter is spinning, you are no longer just a customer—you are a producer. Your bill will drop, and your excess power will finally have value.
But success requires preparation. Fix your wiring, budget for the deposit, and treat the permits with respect. The sun isn't going anywhere—you have time to do it right.