Republic of the ® Philippines

of Representa!

‘Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILLN No, 2990 4350

EXPLANATORY NOTE

In 2021, the Department of Energy stated that despite efforts there are still 1.62
million households that have still no access to electricity.’ Further still, despite the
improvements ushered in by the government, the country still face an energy insecurity
problem due to dependence on non-renewable energy, a growing national population
which increases demand for electricity, and the impact of climate change, which render
Filipinos living in disaster-risk areas vulnerable to displacement.” But the problem with
electricity is not limited to access, there is also the adjoining problem of affordability.
With these two combined, the hardest hit are informal settler families and the
displaced.

There are an estimated 11 miilion peopie in the Philippines affected by energy
poverty and the majority of them are urban poor and energy poor households.
According Miss. Maitet Diokno of the Center for Power Issues Initiative, “poor
communities are behind when we talk of power not only in the political and economic
sense, but also in the field of electricity.”

To combat the cost of electricity, resorting to renewable sources of energy like
solar power is critical to ensuring that the marginalized have a steady and affordable
source to power their homes. Exploiting renewable energy technology like solar power
will shield indigent Filipinos from the financial burden of electricity costs and allow them

for the environment due to reduce carbon emissions.

With this, the passage of this bill is highly sought.

1 https://business.inquirer.net/315918/93-of-flipino-homes-now-have-access-to-electricity
? https://www.adb.org/sites/default/files/publication/529771/adbi-wp1009.pdf
> https://philippines.fes.de/e/tilting-the-power-balance-thru-green-power


Cf ed
ERNESTO “ERNIX” Me INISIO/JR.

Assistant Majority Floor Leader
Congressman

First Congressional District of Manila



Republic ofthe Philippines

Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL No. 455 4550

Introduced by HONORABLE ERNESTO 'ERNIX” M. DIONISIO, IR.

AN ACT
PROVIDING FOR A SOLAR HOME FINANCING SYSTEM FOR INFORMAL
‘SETTLER FAMILIES AND SOCIAL HOUSING BENEFICIARIES AND PROVIDING
FUNDS THEREFOR

Be it enacted by the Senate and the 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 Informal Settler Families and Social Housing Beneficiaries Act.”

SECTION 2. Declaration of Policy. — It shall be the policy of the state to
undertake measures to uplift the conditions of the underprivileged in urhan areas and

resettlement areas by making decent and affordable the cost of housing and basic
services.

The State recognizes the importance of electrification in the welfare of the
people and the sound development of the Philippines. Hence, the State shall promote
and encourage the use of renewable sources of energy to sustain the energy needs
of vulnerable and marginalized sectors.

SECTION 3. Definition of Terms.

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 that convert solar energy
into thermal or electrical energy.

c) Solar Home System — refers to a stand-alone photovoltaic system that offers
a cost-effective mode of supplying amenity power for lighting and
appiiances to remote oif-grid housenoids. Depending on viability, soiar
home systems 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

Off-grid Systems — refer to electrical systems not connected to the writes

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.

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

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SECTION 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 Social Home System financing program to defray up-front
investment of poor families and communities on solar PV installations to provide
secure, clean, and environment-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 annuai housing targets of the iocai government units (LGUs), Nationai
Housing Authority (NHA) and the Social Housing Finance Corporation (SHFC). Per
housing unit, a corresponding budget will be allocated for solar home system 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 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 hased on the combined
annual social housing targets of the NHA and SHFC. Per housing unit, a
corresponding budget will be allocated for solar housing system 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.

SECTION 5. Promotion of Solar Home Systems as an Affordable, Viable,
Accessible, Clean, and Cheaper Energy Source. - The NHA and SHFC shall
incorporate education and information dissemination immediately in the first phase of
the implementation of resettlement projects to orient informal settler families and social
housing beneficiaries about the solar home system financing program.

SECTION 6. Appropriations. - The amount necessary for the implementation
of this Act shall be included in the annual General Appropriations Act.

SECTION 7. Implementing Rules and Regulations. — The Department of
Human Settlement and Lrhan Development (DHSLID), the NHA, and the SHFC, in
coordination with the Department of Energy (DOE), the Department of Interior and
Local Government (DILG), and other relevant government agencies concerned shall



promulgate the necessary implementing rules and regulations within sixty (60) days
upon the effectivity of this Act.

SECTION 8. Repealing Clause. ~ Any law, presidential decree or issuance,
ive order, letter of instruction, administrative order, rule or rag) contrary

to, or inconsistent with the provisions of this Act is hereby repealed, modified, or
amended accordingly.

SECTION 9. Effectivity Clause. — This Act shall take effect on the fifteenth
(15) day following its publication in at least two (2) national papers of general
circulation.