Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. _5 4 05

Introduced by Reps. TEDDY A. CASINO, NERI JAVIER COLMENARES,
LUZVIMINDA C. ILAGAN, EMMI A. DE JESUS, RAFAEL V. MARIANO,
RAYMOND V. PALATINO, and ANTONIO L, TINIO

EXPLANATORY NOTE

{a an era of increasingly high prices and foreseeable decline of the global oil supply, govemment
should at the soonest develop fuel altematives and accelerate the exploration aad wilisation af
Feaewable sources of energy. In 2008, Congress enacted Republic Act no. 9513 ot the Renewable
Energy Act to encourage investments in renewable energy. ‘'o complement this measure, it is also
Becessary f encourage demand and provide incentives especially to purchasers of small renewable

energy systems.

With goverment harnessing the solar resources of the country and providing for incentives for
massive deployment of solar energy systems, the prospects of attaining energy independence from
oil companies and significantly lowering electricity prices in the medium. tetm sve reakeable,

This bill provides for incentives and financing facilities to encourage the use of solar energy by
ordinary electricity consumers like zesidences, offices and stnall to medium business eatablishecare
Tris hoped that through this, the demand for clean solar energy, as well as the opportunities for local
snanpfacturing and related solar energy products and services, will increase.



‘The government should invest in solar power to promote energy stability and independence from
impotted energy sources, mitigate global warming and air pollution and encourage industry growth
that will lead to more jobs and lower electricity bills.

In view of the foregoing, immediate approval of this measure is sought.

Appromé,

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS
Second Regul Session
Tf. AdO05

Introduced by Reps. TEDDY A. CASINO, NERI JAVIER COLMENARES,
LUZVIMINDA C, ILAGAN, EMMI A. DE JESUS, RAFAEL V, MARIANO,
RAYMOND V. PALATINO, and ANTONIO L. TINIO

AN ACT
PROVIDING FOR INCENTIVES AND CREDIT FACILITIES
FOR CONSUMERS OF SMALL SOLAR POWER SYSTEMS IN THE PHILIPPINES

‘Be it enacted by the Senate and the House of Reprasentatives of the Philippines in Congress assembled:

SECTION 1. Short Title - This Act shall be known as the “One Million Solar Roofs Act of
2011.”

SECTION 2. Declaration of Policy - It is the policy of the State to promote the utilization of

renewable enetgy resources to teduce dependence on imported energy from fossil fuels, take into
account public health and the environment and generate additional jobs and local businesses for a
sustainable national growth.

An pursuit of said policy, the state encourages the use of small solar power systems especially in
residences and offices where the portability and flexibility of solar power technology can be
an

SECTION 3. Definition of Terms — as used in this Act, the following terms shall mean:

(@) “Small Solar Power System” — rooftop-installed solar-powered equipment, devices anu
systems, not exceeding 10 kilowatts (kcw) for residential and 500 kw for businesses, used to generate
electricity, light, or heat water;

() “Eligible Participant” ~ any individual ot entity, such as an owner of a home, business of
school, that the government determines to be appropriate pursuant to the purposes of this Act;

(©) “Installed Nameplate Capacity”- maximum output ot amount of energy a facility or
‘equipment, such as a solar power system, is designed to produce and sustain;


(© “Local content”- the use of Filipino manpower, technology, materials and other services;
(@ “Tnstailation Target” — the share of solar power in the total energy mix in the next 10 years;

(© “Net metering” — a system, appropriate for distributed genetation, in which a distribution grid
user has a two-way connection to the grid and is only charged for his net electricity consumption
and is credited for any overall contribution to the electricity grid;

( “Malampaya Funds” — Government share in the revenues derived from the Malampaya oil
field in Palawan.

SECTION 4. Jastallation of Sotar Power Systems — The government, through the Deparment
of Energy, the National Renewable Energy Board (NREB) and the Housing and Urban
Development Coordinating Council (HUDCO), shall encourage the installation of small solar energy
systems in homes and business establishments all over the country, targeting a million rooftops in
the next ten years,

SECTION 5. Approval of Eligible Participants and Solar Power Systems — ‘The NREB shall.
formulate and implement the eligibility criteria for qualified patticipants who may avail of the

various incentives and programs under this Act. The NREB shall likewise determine the minimum
standards for small solar power systems, taking into account installed nameplate capacity as well as,

local content, which should be at least fifty percent (50%).

SECTION 6. Soft Loans and Other Incentives for the Purchase and Installation of Small
Solar Power Systems and the Gencration of Solar Electricity - There is hereby established
under this Act a program, to be jointly administered by the NREB, the Pag-IBIG Fund, the
Government Service Insursace System (GSIS), and the Social Secutity System (SSS), which shall
Provide for a solar rooftop credit and financing program, accessible to all eligible Pag-IBIG, GSIS.
and SSS members. Such program includes but is not limited to the installation of stnall solar power
systems as an allowable expense for ome construction and improvement.

SECTION 7. Fiscal Incentives — Subject to existing laws, rules and regulations, incentives granted
to renewable energy developers as provided for in Republic Act no. 9513 or the Renewable Energy
Act shall be applied to eligible participants using small solar power systems.

SECTION 8. Net Metering — Users of small solar power systems shall be qualified to enter into
et-meteting agreements with distribution utilities, as mandated by Sec. 10 of the Republic Act no.
9513. No unreasonabie technical, fiscal, and administrative barriers, either national ot local, shall be
imposed upon the participants. The NREB shall ensure that systems for this purpose are put in
place within one year from the effectivity of this Act.

SECTION 9. mpiementing Rules and Regulations. - The NREB shall, in consultation with
the stakeholders such as homeowners, small businesses, factories and renewable energy providers,
issue the necessary rules and regulations for the effective implementation of this Act.


SECTION 10. Appropsiations - Necessary funds for the purposes of this Act shall be taken from
the proceeds of the Malampaya funds. Budgetary support for administrative expenses shall be taken
from the Renewable Energy Trust Fund created under Republic Act no. 9513 ot the Renewable

Act
SECTION 11. Repeating Clause Alllaws, presidental decrees, executive orders, miles and
regulations ot parts thereof which are inconsistent with the provisions of this Act are hereby
repealed ot mnodified accordingly.
SECTION 12. Separsbility Clause — If any part o provision of this Act shall be held
unconstitutional or invalid, other provisions hereof which are not affected shall continue to be in
full force and effect.
SECTION 13. HAtetivity— This Act shall take effect fifteen (15) days after its publication in two
@ cational newspapers of general circulation.

Appr,