EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
)
)
S E N A T E
S. No. 581
m . t :  jftiji'ig  'T -fn rp
*19 
JUL 17 P5 50
Introduced by Senator Grace Po^ECEi.
k—
AN ACT
TO FURTHER PROMOTE THE ADOPTION OF ROOFTOP SOLAR TECHNOLOGY 
AMONG RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AND GOVERNMENT 
END-USERS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9513, 
OTHERWISE KNOWN AS THE "RENEWABLE ENERGY ACT OF 2008", AND 
FOR OTHER PURPOSES
EXPLANATORY NOTE1
In 2018, the Institute for Energy Economics and Financial Analytics (lEEFA) 
published a report entitled "Unlocking Rooftop Solar in the Philippines" which tagged 
Philippines has one of the highest-priced electricity rates among ASEAN members 
states. However, it stressed that the promotion of solar power generation can 
ensure power supply while lowering electricity costs to P2.50 per kilowatt-hour 
(kWh), leading to a $2.8 billion or P1.5 trillion in new investment by 2030.2
The benefits of solar power has long been recognized by National Economic 
Development Authority (NEDA) Director General Ernesto M. Pernia. In 2015, he 
wrote a policy report entitled "Solar Power's Dawning and Promise for Inclusive 
Growth" published by the Philippine Center for Economic Development (PCED).3 He 
noted the recent developments in solar energy and called upon the government to 
vigorously foster the development of solar power in its various forms.4
1 We acknowledge the support of Mr. Roberto Verzola in drafting this measure.
2 Ahmed, S.J. Unlocking Rooftop Solar in the Philippines. Retrieved from  http://ieefa.org/w p-
content/uploads/2018/07/Unlocking-Rooftop-Solar-in-the-Philippines_July-2018.pdf
3 Pernia, E.M. "Solar Power's Dawning and Promise" PCED Policy Notes {Ho. 2015-01) Retrieved from 
http://www.pced.gov.ph/wp-content/uploads/2015/07/PN-2015-01_final-digital.pdf
4 Pernia, E.M. "Solar Power's Dawning and Promise" PCED Policy Notes {Ho. 2015-01) Retrieved from
http://www.pced.gov.ph/wp-content/uploads/2015/07/PN-2015-01_final-digital.pdf


According to the study, rooftop solar is an emerging technology which the 
government should look into for of the following reasons:
1) Electricity from rooftop solar is becoming cheaper by the day. In 2014, then 
Department of Energy (DOE) Secretary Jericho Petilla stated that electricity 
from a coal plant costs around PhplZ.OO per kilowatt hour, with transmission 
and distribution costs factored in.5 In contrast, electricity from solar panels 
directly installed on one's rooftop costs only Php9.00per kilowatt hour;6
2) Rooftop solar could reduce the demand for electricity during peak hours. In 
2013, the United States Agency for International Development (USAID) 
estimated that a 10% reduction in peak demand is expected to bring down 
spot prices by 20%.7 Of course, peak hours are usually around 12 to 2 pm in 
the afternoon when the sun is hottest. In 2015, the Luzon grid recorded its 
highest electricity demand to date at 8,791 megawatts (MW) on May 6 at 
2:08 pm.8 Fortunately, solar panels work best when the sun is hottest, which 
coincides with when demand for electricity in the Philippines is highest;
3) Complete solar photovoltaic systems can be bought off-the-shelf and could 
be easily installed in a few hours. Larger systems may take a few days. No 
other technology, renewable or otherwise, could match the convenient 
installation attributed to rooftop solar; and
4) Unlike other power plants, whether fossil-based, hydro, wind or solar farms, 
rooftop solar does not require land conversions because it uses what is 
usually an underutilized and already existing resource, the roof.
5 Verzola, R. Crossing Over: The Energy Transition to Renewable Electricity. Philippines: Friedrich Ebert-Stiftung, 
2015.
6 Ibid.
7 USAID. Challenges in Pricing Electric Power Services in Selected ASEAN Countries. Retrieved from 
http://www.catif.org/wp-content/uploads/2013/10/Challenges-in-Pricing-Electric-Power-Services.pdf
8 Olchondra, R.T. "Summer heat drives Luzon power demand to new peak" Philippine Daily Inquirer 
08, 
2015). Retrieved from http://business.inquirer.net/191467/summer-heat-drives-luzon-power-demand-to-new- 
peak


The Philippines has policy mechanisms to support the development of rooftop 
solar. In 2008, net-metering was introduced as one of the major policy innovations 
under Republic Act No. 9513, otherwise known as the "Renewable Energy Act o f 
2008". In addition, MERALCO introduced the Peak/Off-Peak (POP) Program in 2014. 
Under the POP program, households with rooftop solar are charged a higher rate for 
daytime-consumption and a lower rate for night time consumption.9 Finally, PAG- 
IBIG Fund introduced a new solar panel acquisition/installation loan in 2015.10
This representation seeks to introduce the following measures to further 
increase and encourage the adoption of rooftop solar in the Philippines:
1) Removal of the 100-Kw cap on distributed generation to allow large electricity 
consumers such as commercial establishments and industrial buildings to avail 
of the net-metering program under RA 9513;
2) Insertion of an explicit provision that the same reference price should be 
applied to both electricity imported from and exported to the grid by end- 
users;
3) Requiring the Department of Energy, Energy Regulatory Commission, National 
Renewable Energy Board, Department of Interior and Local Government, to 
standardize permits and licenses needed to install rooftop solar panels;
4) Institutionalization of the rooftop solar loan program of the PAG-IBIG Fund; 
and
5) Mandatory installation of rooftop solar panels on government buildings, which 
shall increase by 5% every five years.
9 Ranada, P. "How Practical is Solar Power for PH Home Owners" Rappler{2(i July 2014). Retrieved from
http://vmw.rappler.com/business/industries/power-and-energy/64165-solar-power-ph-households-net-metering
10 PAG-IBIG Fund. "Availment of PAG-IBIG Housing Loan for the Acquisition/installation of Solar Panels.
http://wvm.pagibigfund.gov.ph/governancescorecard/Materials%20for%20uploading/Memo%20on%20Environm
ent.pdf


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


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
S E N A T E
S. No. 581
.-13'  1.
of t.ji- 
.r-tarp
'19 
JUL 17 P5 SO
Introduced by Senator Grace Poe
AN ACT
TO FURTHER PROMOTE THE ADOPTION OF ROOFTOP SOLAR TECHNOLOGY 
AMONG RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AND GOVERNMENT 
END-USERS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9513, 
OTHERWISE KNOWN AS THE "RENEWABLE ENERGY ACT OF 2008", AND 
FOR OTHER PURPOSES
Be it enacted by the Senate and the House o f Representatives o f the Senate in 
Congress assembled:
1 
Section 1. Short Title. -  This Act shall be known as the "Solar Rooftop
2 
Adoption Act of 2019".
3 
Sec. 2. Declaration o f Policy. -  The State recognizes energy security and
4 
electricity affordability as necessary components of inclusive, sustained and broad-
5 
based growth. The State further recognizes the necessity of balancing the provision
6 
of secure and affordable electricity with the right of the people to a balanced and
7 
healthful ecology in accord with the rhythm and harmony of nature. The State also
8 
recognizes the emergence of rooftop photovoltaic or solar technology as an
9 
increasingly affordable and feasible method of complementing the electricity needs
10 
of residential and commercial end-users, thereby reducing overall demand.
11 
To this end, it is hereby declared a policy of the State to further promote
12 
rooftop solar technology among residential and commercial end-users, and to
13 
address institutional barriers to its adoption thereof.
14 
Sec. 3. Section 4 of Republic Act No. 9513 is hereby amended to read as
15 
follows:
16 
"Section 4. Definition o f Terms- As used in this Act, the following terms
17 
are herein defined:
18 
XXX
1


1 
(j) "Distributed generation" refers to a system of small generation
2 
entities supplying directly to the distribution grid [ ,ony one of which shall
3 
not exceed one hundred kitewatts (100 kW) in capacityj]  OR TO END-
4 
USERS, AND WHICH ARE PRIMARILY USED TO 
MEET OR
5 
AUGMENT THE ELECTRICITY REQUIREMENTS OF END USERS."
6 
Sec. 4. Section 10 of the same Act is hereby amended to read as follows:
7 
"Section 10. Net-Metering for Renewable Energy.- Subject to technical
8 
considerations and without discrimination and upon request by distribution
9 
end-users, 
the 
distribution 
utilities 
shall 
enter 
into 
net-metering
10 
agreements with qualified end-users who will be installing RE system.
11 
The ERC, in consultation with the NREB and the electric power industry
12 
participants, shall establish net metering interconnection standards and
13 
pricing methodology and other commercial arrangements necessary to
14 
ensure success of the net-metering for renewable energy program within
15 
one (1) year upon the effectivity of this Act. IN ESTABLISHING A
16 
PRICING METHODOLOGY, THE ERC SHALL ENSURE THAT THE
17 
SAME REFERENCE SHALL BE APPLIED TO BOTH THE ELECTRICITY
18 
IMPORTED FROM AND EXPORTED TO THE DISTRIBUTION GRID
19 
BY END-USERS.
20 
The distribution utility shall be entitled to any Renewable Energy
21 
Certificate resulting from net-metering arrangement with the qualified
22 
end-user who is using an RE resource to provide energy and the
23 
distribution utility shall be able to use this RE certificate in compliance with
24 
its obligations under RPS.
25 
The DOE, ERC, TRANSCO or its successors-in-interest, DUs, PEMC and
26 
all relevant parties are hereby mandated to provide the mechanisms for
27 
the physical connection and commercial arrangements necessary to
28 
ensure the success of the Net-metering for Renewable Energy program,
29 
consistent with the Grid and Distribution Codes."
30 
Sec. 5. Standardization o f Permits and Licensing Requirements. -  The
31 
Department of Energy, in coordination with the Department of Interior and Local
32 
Government (DILG), in coordination with the relevant Distribution Utilities and Local


1 
Government Units, 
shall standardize and streamline permitting and licensing
2 
requirements in the installation of rooftop solar projects.
3 
Sec. 6. Solar Installation Loans. -  Pursuant to the declared national policy of
4 
this Act, the Board of Trustees under Republic Act No. 9679, otherwise known as the
5 
"Home Development Mutual Fund Law of 2009" shall develop a loan program for
6 
qualified members for the acquisition and installation of solar panels as part of home
7 
improvement or as a component of the housing unit to be purchased, subject to the
8 
prevailing Pag-IBIG Fund rules and regulations.
9 
Sec. 7. Installation o f Solar Panels on Government Buildings. -  All government
10 
agencies, in coordination with the Department of Energy (DOE), shall install solar
11 
energy systems in their respective offices and buildings. The solar panels shall
12 
supply at least five per cent (5%) of the electric power requirements of each
13 
government office or building within the three (3) years from the effectivity of this
14 
Act, which shall be further increased by five per cent (5%) every five (5) years
15 
thereafter.
16 
Sec. 8. Appropriations. -  Such funds necessary to carry out the provisions of
17 
this Act shall be included under the appropriations of the Department of Energy
18 
(DOE) in the annual General Appropriations Act.
19 
Sec. 9. Implementing Rules and Regulations. -  The Department of Energy
20 
(DOE), National Renewable Energy Board (NREB), Energy Regulatory Commission
21 
(ERC), Department of Interior and Local Government (DILG), in consultation with
22 
the concerned stakeholders in the electric power industry and renewable energy
23 
industry shall jointly promulgate the implementing rules and regulations if this Act
24 
within ninety (90) days of its effectivity.
25 
Sec. 10. Separability Clause. -  If any part or provision of this Act shall be
26 
declared unconstitutional and invalid, such declaration shall not invalidate other
27 
parts thereof which shall remain in full force and effect.
28 
Sec. 
11. 
Repealing 
Clause. 
-  
All 
laws, 
decrees, 
executive 
orders,
29 
proclamations, rules and regulations, or their parts thereof, which are inconsistent
30 
with the provisions of this Act are hereby repealed, amended or modified
31 
accordingly.


1 
Sec. 12. Effectivity Clause. -T h is  Act shall take effect fifteen (15) days after
2 
its publication in the Official Gazette or in a newspaper of general circulation.
Approved,