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NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 2138
23 MAY-8 A10 54
RECEIVED 3V:
Introduced by Senator MANUEL "LITO" M. LAPID
AN ACT
PROMOTING THE USE OF RENEWABLE ENERGY TECHNOLOGY IN HOMES 
AND STRENGTHENING THE IMPLEMENTATION OF THE NET-METERING 
PROGRAM, AMENDING FOR THE PURPOSE REPUBLIC ACT. NO. 9513, 
OTHERWISE KNOWN AS THE RENEWABLE ENERGY ACT OF 2008
EXPLANATORY NOTE
Republic Act No. 9513 otherwise known as Renewable Energy Act of 2008, established 
net-metering program throughout the country. According to this Law, the State declared its 
policy to, "Increase the utilization of renewable energy by institutionalizing the development 
of national and local capabilities in the use of renewable energy systems, and promoting its 
efficient and cost-effective commercial application by providing fiscal and nonfinancial 
incentives."
The net metering program allows and encourages individuals or businesses to 
generate their own renewable energy and feed the excess electricity back into the grid, 
receiving credits or payments for the energy they produce. It encourages investment as it 
provides an incentive for individuals and businesses to invest in renewable energy 
technologies such as solar panels or wind turbines. As more people invest in renewable energy 
technologies, the amount of renewable energy generated will increase, reducing the reliance 
on fossil fuels and decreasing greenhouse gas emissions. And the growth of the retail 
renewable energy for homes sector can support the creation of jobs in manufacturing, 
installation, and maintenance of renewable energy systems. Net metering can help to 
stimulate this growth by increasing demand for renewable energy technologies.


Ang panukalang batas na ito ay maghibigay ng mga karagdagang insentibo para sa 
ating mga kababayan na gumamit ng renewable energy sa kani-kanilang mga tahanan. Kung 
mapadali natin na maikabit sa national grid ang mga residential solar panel, mabibigyan din 
ng pagkakataon ang ating mga kababayan na makatuiong soiusyonan ang krisis sa enerhiya 
kahit sa maiiit na paraan.
This measure seeks to introduce three crucial reforms to encourage more end users 
to sign up for the net-metering program. First, by removing the 100-kW threshold for 
distributed energy system and mandate the Energy Regulatory Commission (ERC) to routinely 
determine the maximum kW capacity for distributed generation while taking into account 
potential implications on the grid's reliability and captive consumers' retail rates. Second, make 
the application procedures and the permitting process standardized and expedited, and 
provide minimum requirements for local government units under the time frames outlined in 
Republic Act No. 11234, otherwise known as the Energy Virtual One Stop-Shop Act. Finally, in 
order to rectify the double-charging scheme of the current pricing methodology, where net- 
metered end-users also pay for the transmission and distribution charges of the electricity 
surplus they produced that is already covered by other electricity consumers, the proposed 
bill mandates a parity pricing methodology that credits end-users the full retail price of the 
surplus electricity contributed to the electricity grid, including accumulated unused credits 
from the prior billing period.
Our government have set targets to increase the amount of renewable energy in our 
energy mix. Net metering can help to achieve these targets by encouraging the production of 
renewable energy at a local level.
In view of the foregoing, the immediate passing of this bill is earnestly sought.
MAN
L "LITO" M. LAPID
Senator


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 2138
of tl;p ’
23 MAY -8 AlO 54 
\
RECEIVED 3V
Introduced by Senator Manuel "Lito" M. Lapid
1 
AN ACT
2 
PROMOTING THE USE OF RENEWABLE ENERGY TECHNOLOGY IN HOMES
3 
AND STRENGTHENING THE IMPLEMENTATION OF THE NET-METERING
4 
PROGRAM, AMENDING FOR THE PURPOSE REPUBLIC ACT. NO. 9513,
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OTHERWISE KNOWN AS THE RENEWABLE ENERGY ACT OF 2008
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
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SECTION 1. Definition of Distributed Generation. — Section 4 of Republic Act No.
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9513, otherwise known as the Renewable Energy Act of 2008, is hereby amended to read as
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follows:
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"Section 4. Definition of Terms. — As used in this Act, the 
following terms are herein defined:
XXX
"(j) "Distributed generation" refers to a system of small 
generation entities supplying directly to the distribution grid, any 
one of which shall not exceed [one hundred kilowatts (100 kW) 
m—capacity] THE MAXIMUM KILOWATT CAPACITY 
DETERMINED BY THE ENERGY REGULATORY 
COMMISSION PURSUANT TO SECTION 10 OF THIS ACT."
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XXX


"(gg) "Net Metering" !cfers to a system, appropriate for 
distributed generation, 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, INCLUDING 
ACCUMULATED UNUSED CREDITS FROM THE PREVIOUS 
BILLING PERIOD;"
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XXX
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SECTION 2, Net Metering for Renewable Energy. — Section 10 of the same Act is
10 hereby amended to read as follows:
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"Section 10. Net Metering for Renewable Energy.
— Subject to technical considerations and without discrimination 
and upon request by distribution end-users, the distribution 
utilities shall enter into net-metering agreements with qualified 
end-users who will be installing RE system.
The ERC, in consultation with the NREB and the electric 
power industry participants, shall:
1) Establish net metering intercoi'nection standards and A PARITY 
pricing methodology THAT CREDITS END-USERS THE FULL 
RETAIL PRICE OF THE SURPLUS ELECTRICITY 
CONTRIBUTED TO THE ELECTRICITY GRID, INCLUDING 
ACCUMULATED UNUSED CREDITS FROM THE PREVIOUS 
BILLING PERIOD, and other commercial arrangements 
necessary to ensure success of the net-metering for renewable 
energy program within one (1) year upon the effectivity of this 
Act, AND
2) REGULARLY DETERMINE THE MAXIMUM KILOWATT 
(KW) CAPACITY FOR DISTRIBUTED GENERATION TO 
INCLUDE THE NET METERING FOR RENEWABLE ENERGY 
PROGRAM: PROVIDED, THAT IN SO DOING IT SHALL 
CONSIDER THE EFFECTS ON THE STABILITY OF THE 
GRID AND RETAIL RATES OF CAPTIVE CUSTOMERS,


TOGETHER WITH OTHER POLICIES UNDER THIS ACT 
AND REPUBLIC ACT NO. S136, OTHERWISE KNOWN AS 
THE ELECTRIC POWER INDUSTRY REFORM ACT OF 2001, 
SUCH AS RETAIL COMPETITION AND OPEN ACCESS.
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The distribution utility shall be entitled to any Renewable 
Energy Certificate resulting from net-metering arrangement with 
the qualified end-user who is using an RE resource to provide 
energy and the distribution utility shall be able to use this RE 
certificate in compliance with its obligations under RPS.
The DOE, ERC, TRANSCO or its successors-in-interest, 
DUs, PEMC and all relevant parties are hereby mandated to 
provide the mechanisms for the physical connection and 
commercial arrangements necessary to ensure the success of the 
Net-metering for Renewable Energy program, consistent with the 
Grid and Distribution Codes.
THE PERMITTING PROCESS AND REQUIREMENTS 
FOR THE APPLICATION OF QUALIFIED END-USERS FOR 
THE NET METERING FOR RENEWABLE ENERGY 
PROGRAM SHALL BE UNIFORM AND STREAMLINED 
ACROSS ALL DUS, SHALL PROVIDE MINIMUM 
REQUIREMENTS FOR LOCAL GOVERNMENT UNITS, AND 
SHALL FOLLOW THE TIME FRAMES PROVIDED IN 
REPUBLIC ACT NO. 11234, OTHERWISE KNOWN AS THE 
ENERGY VIRTUAL ONE STOP-SHOP ACT: PROVIDED, 
THAT THE TIME FRAME FOR DUS SHALL BE FIFTEEN (15) 
WORKING DAYS FROM COMPLETE SUBMISSION OF 
REQUIREMENTS. THE DOE SHALL BE THE LEAD AGENCY 
IN THE RATIONALIZATION OF THE PROCESS AND 
REQUIREMENTS FOR THE NET METERING FOR 
RENEWABLE ENERGY PROGRAM, TOGETHER WITH THE 
ERC AND DEPARTMENT OF THE INTERIOR AND LOCAL 
GOVERNMENT, AND UPON CONSOLATION WITH OTHER 
PUBLIC AND PRIVATE STAKEHOLDERS."


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SECTION 5. Implementing Rules and Regulations. — The Department of Energy
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(DOE), National Renewable Energy Board, 
Energy Regulatory Commission, and the
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Department of Interior and Local Government, in consultation with the concerned public and
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private stakeholders, shall formulate the implementing rules and regulations of this Act within
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ninety (90) days from the effectivity of this Act.
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SECTION 6. Separability Clause. — In the event that any part, section or provision of
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this Act shall be declared unconstitutional or invalid by a competent court, the remaining
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provisions thereby shall remain valid and in full force and effect as if the sections or provisions
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so annulled or voided had never been incorporated herein.
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SECTION 7. Repealing Clause. — All laws, decrees, executive orders, issuances, rules
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and regulations, or parts thereof not consistent with the provisions of this Act are hereby
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repealed or modified and/or superseded as case may be by this Act accordingly.
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SECTION 8. Elfectivity. — This Act shall take effect fifteen (15) days after its complete
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publication in the Official Gazette or in at least two (2) newspapers of general circulation,
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whichever comes earlier.
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Approved,