Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
EXPLANATORY NOTE 
This bill seeks to establish a solar home system financing program that can be 
integrated into social housing financing programs payable in 25-30 years. This is to 
take advantage of the declining costs of solar energy and the need to address 
problems in accessing electricity.   
The scale of social housing financing projects has good potential for renewable 
energy installation. The program is intended for the socialized housing sector who 
usually cannot afford the investment for renewables. The government can help defray 
this initial cost by establishing renewable energy financing programs that are normally 
inaccessible to the poor. 
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
May 15, 2023
9:00 am
8095


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
ESTABLISHING THE SOLAR HOME SYSTEM FINANCING FOR SOCIAL 
HOUSING PROGRAM, AND PROVIDING FUNDS THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the "Solar Home System 
Financing for Social Housing Program Act.” 
Sec. 2. Declaration of Policy. – The Constitution mandates that the State shall 
protect and promote the right of people to decent housing with basic services at 
affordable cost. The informal settler families (ISFs), particularly those located in 
danger zones and those displaced by government infrastructure projects and 
calamities deserve no less than habitable resettlement areas as well as 
climate-resilient communities. 
Recognizing the right to have quality, reliable, affordable, safe and regular supply of 
electric power vis-a-vis the vulnerability of the Philippine archipelago and its local 
communities, particularly the poor, women, and children, to potential dangerous 
consequences of climate change, the State shall strengthen, integrate, consolidate 
and institutionalize initiatives to address climate change in the context of sustainable 
development, such as the prioritization of renewable sources in energy generation to 
reduce greenhouse gas emissions. 
Sec. 3. Definition of Terms. 
8095


 
 
a) 
Solar Energy. – refers to the energy derived from solar radiation that can be 
converted into useful thermal or electricity energy. 
 
b) 
Solar Energy Systems. – refers to energy systems which convert solar energy 
into thermal or electrical energy. 
 
c) 
Solar Home System (SHS). – refers to a stand-alone photovoltaic system that 
offers a cost-effective mode of supplying amenity power for lighting and 
appliances to remote off-grid households. Depending on viability, SHS may 
be grid-tie, off-grid or hybrid solar PV. 
 
d) 
Net Metering. – refers to a system, appropriate for distributed generation, in 
which a distribution grid user has a two-way connection to the grid and only 
charged for his/her net electricity consumption and is credited for any overall 
contribution to the electricity grid. 
 
e) 
Off-grid Systems. – refers to electrical systems not connected to the wires 
and related facilities of the On-Grid Systems of the Philippines. 
 
f) 
On-grid Systems. – refers to electrical systems composed of interconnected 
transmission lines, distribution lines, substations, and related facilities for the 
purpose of conveyance of the bilk power on the grid of the Philippines. 
 
g) 
Renewable Energy Systems. – refer to energy systems which convert RE 
resources into useful energy forms, like electrical, mechanical, etc. 
 
h) 
Rural Electrification. – refers to the delivery of basic electricity services, 
consisting of power generation, sub-transmission, and/or extension of 
associated power delivery system that would bring about important social and 
economic benefits to the countryside. 
 
Sec. 4. Creating the solar home systems financing for social housing program. 
– All current and future social housing financing programs shall require the integration 
of the SHS financing program to defray up-front investment of poor families and 


 
 
communities 
on 
solar 
PV 
installations 
to 
provide 
secure, 
dean, 
and 
environmental-friendly power services in both in-city and off-city resettlement sites. 
The annual target for solar housing units shall be based on the combined annual 
social housing targets of the LGUs, NHA and SHFC. Per housing unit, a 
corresponding budget will be allocated for SHS financing based on the prevailing cost 
of solar home systems in the market on top of the cost for the production of the 
housing units. The terms of the financing program, which may be in the form of loans, 
grants and equity contributions from the shelter agencies shall be designed so that 
electricity-related expenditures of households over the medium term will not be 
greater than expenditures they would incur if they were connected to the electricity 
grid. 
 
The annual target for solar housing units shall be based on the combined annual 
social housing targets of the NHA and SHFC. Per housing unit, a corresponding 
budget will be allocated for SHS financing based on the prevailing cost of solar home 
systems in the market on top of the cost for the production of the housing units. 
 
Sec. 5. Promotion of solar home systems as an affordable, viable, accessible, 
clean and cheaper energy source for social housing programs. – The NHA and 
SHFC shall incorporate education and information dissemination immediately in the 
first phase of the implementation of resettlement projects to orient ISFs about the 
SHS financing program. 
 
Sec. 6. Appropriations. – The amount necessary for the implementation of this Act 
shall be included in the annual General Appropriations Act. 
 
Sec. 7. Implementing Rules and Regulations. – The Department of Housing and 
Sustainable Urban Development (DHSUD), NHA and the SHFC, in coordination with 
the Department of Energy (DOE), Department of Interior and Local Government 
(DILG), and other government agencies concerned, shall promulgate the necessary 
implementing rules and regulations within thirty (30) days upon the effectivity of this 
Act. 
 
Sec. 8. Separability Clause. – If any provision, section or part of this Art shall be 


 
 
declared unconstitutional or invalid, such judgment shall not affect, invalidate or 
impair any other provisions, sections or parts thereof. 
 
Sec. 9. Repealing Clause. – All laws, acts, decrees, executive orders, issuances, 
and rules and regulations or parts thereof which are contrary to and inconsistent with 
this Art is hereby repealed, amended or modified accordingly. 
 
Sec. 10. Effectivity. – This Art shall take effect fifteen (15) days following its 
publication in at least two (2) newspapers of general circulation of in the Official 
Gazette. 
 
Approved,