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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S.No. 
2456 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
'14 
NOV 18 P 1 :44 
PROVIDING COMPETITIVE GRANTS TO LOCAL GOVERNMENTS FOR 
. REBATES, LOANS, AND OTHER INCENTIVES TO ELIGIBLE INDIVIDUALS OR 
ENTITIES FOR THE PURCHASE AND INSTALLATION OF SOLAR ENERGY 
SYSTEMS FOR PROPERTIES LOCATED IN THE PHILIPPINES 
EXPLANATORY NOTE 
According to a 2013 International Energy Agency (IEA) report, renewables like 
solar and wind represent the fastest-growing source of energy power generation that will 
make up a quarter of the global power mix by 2018. The IEA said that in 2016 renewable 
energy will overtake natural gas as a power source and will be twice that of nuclear, and 
second only to coal as a source of power. 
This report comes in the wake of recen~studies showing that the threat of climate 
'" 
change is greater than earlier estimates. The IEA's recommendations to combat climate 
change include curtailing coal-fired power stations and phasing out fossil fuel subsidies.! 
Renewable energy is seen as a solution to global warming. Unlike the combustion 
of conventional fossil fuel sources of energy, the generation of renewable energy does not 
emit greenhouse gases or emit air pollutants when consumed. Greenhouse gases from the 
power and transportation sector are the main drivers of climate change, a global 
phenomenon which may cause the Earth to warm past liveable limits.2 
1 http://www.rappler.com/science-nature/3 2300-renewab le-energy-nse-gaining -worldwide-iea 
2 http://www.rappler.com/newsI70298-solar-powered-malls-philippines 
1 


., 
Solar energy, a form of renewable energy, is increasingly becoming popular in the 
Philippines. At least eight malls in the country will reportedly be partially powered by 
solar panels by the end of 20 14. 
Last September 2014, Central Mall Bifian in Laguna was the first of the eight to be 
connected to solar power. The 2,514 solar panels spread across 7,000 square meters of 
the mall's roof make the project the biggest operating solar rooftop plant in the country 
\, 
with a capacity of 700 kilowatts. Energy from the sun captured by the panels is converted 
to electricity by 87 inverters, enough to suppl~ 30% of the mall's energy needs. Central 
Mall Bifian's newly-installed solar panels wi~reportedly be able to save the mall's 
management more than P750,000 on monthly electricity bills.3 
We need to put into place long-term government policies to encourage households, 
businesses, and other entities to invest in renewable energy, especially solar energy. This 
bill provides rebates, loans, and other incentives to eligible individuals or entities for the 
purchase and installation of solar energy systems for properties in the Philippines. 
\ \ " 
2 


" 
SIXTEENTH CONGRESS OF THE REPUBqC 
OF THE PHILIPPINES 
\ 
Second Regular Session 
" 
SENATE 
S.No. 
2456 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
SFIWh' 
. tOHt;r \:If tlt~ ~ltnthlf!r! 
'14 
NOV 18 P 1 :44 
IUX'cIVEt) BV:-f 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
AN ACT 
2 
PROVIDING COMPETITIVE GRANTS TO LOCAL GOVERNMENTS FOR 
3 
REBATES, LOANS, AND OTHER INCENTIVES TO ELIGIBLE INDIVIDUALS OR 
4 
ENTITIES FOR THE PURCHASE AND INSTALLATION OF SOLAR ENERGY 
5 
SYSTEMS FOR PROPERTIES LOCATED IN THE PHILIPPINES 
6 
SECTION 1. Short Title. - This Act shall be known as the "Solar Roofs Act of 
'7 
2014." 
8 
SECTION 2. Declaration of Policy. - It is the policy of the State to promote 
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alternative and renewable sources of energy with due regard to public health and the 
10 
environment, consistent with the country's sustainable economic growth. 
\, 
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SECTION 3. Definitions. - In this Act, \he term-
(a) 
"Eligible participant" means-
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(1) 
an owner of a home; 
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(2) 
a business entity; 
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(3) 
a school, college, or university; and 
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(4) 
any other individual or entity that the Secretary of Energy 
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determines to be appropriate pursuant to the purposes of this Act; 
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(b) 
"Installed nameplate capacity" means the maximum output of a solar 
2 
electric system under specific conditions designated by the manufacturer of the solar 
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electric system; 
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(c) 
"Secretary" means the Secretary of Energy; 
(d) 
"Solar energy system" means rooftop or ground-mounted solar equipment 
that is used to generate electricity or heat water. 
SECTION 4. Rebates, Loans, and Other Incentives for Purchase and Installation 
of Solar Energy Systems. - (a) In General-There is hereby established under this Act a 
.. 
program, to be administered by the Secretary of Euergy, which shall provide competitive 
grants to local governments to provide reb~es, loans, or other incentives to eligible 
participants for the purchase and installation ~f solar energy systems for properties 
located in the Philippines. 
(b) 
Implementation-The Secretary shall adopt and implement criteria for 
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awarding competitive grants under subparagraph (a) to local governments that would-
IS 
(1) 
provide the maximum leverage of government funds; 
16 
(2) 
provide for the maximum deployment of solar energy; 
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(3) 
ensure that grants are awarded to a diversity of geographic locations 
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and recipients with different population sizes; and 
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(4) 
provide a preference for grant recipients that have established and 
20 
maintained, or agree to commit to establish and maintain, standards 
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and policies to overcome barriers to distributed generation 
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(including interconnection and net metering) in a manner consistent 
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with the legal authorities of the grant recipient. 
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(c) 
Authorized Use of Funds-Competitive grants under this section may be 
25 
used to expand an existing, or establish and fund a new-
2 
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, . 
1 
2 
3 
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5 
(1) 
(2) 
(3) 
(4) 
solar rebate program; 
solar loan program; 
solar performance-based incentive program; or 
other solar incentive pr~rams not described III this section, as 
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determined by the Secretary. 
6 
(d) 
Program Requirements-For each fiscal year during which a grant recipient 
7 
uses funds provided under this section, the grant recipient shalI-
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(e) 
(1) 
certify to the Secretary that the funds will be used-
(i) 
to supplement, expand, or create new programs or projects 
and will not supplant existing programs as to maximize 
program participation; and 
(ii) 
to deploy an increased quantity of solar energy systems; and 
(2) 
submit to the Secretary an implementation plan that contains-
(i) 
projections for solar energy systems deployment; 
(ii) 
data regarding the number of eligible participants that are 
assisted under existing applicable national and local 
programs; and 
(iii) 
projections for-
(I) 
additional solar energy system deployment; and 
(II) 
the number ot' additional eligible participants who will 
be covered by the annual implementation plan. 
Solar Energy System-With re\pect to grant awards in any fiscal year 
" 
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under this section, the Secretary may specify the type and capacity of the solar energy 
24 
system and type of deployment or incentive program for which the grant funds are made 
25 
available. 
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· . 
1 
(t) 
Share--Each eligible entity that receives funds under this section shall be 
2 
responsible for an amount equal to twenty (20) percent of the amount of the provided 
3 
funds. 
4 
(g) 
Administrative Expenses-Not more than five (5) percent of the amounts 
5 
made available for each fiscal year under this section may be used to pay the 
6 
administrative expenses of the Department of Energy that the Secretary determines to be 
7 
necessary to carry out this Act, including expenses arising from monitoring and 
8 
evaluation. 
9 
(h) 
Maximum Incentive-
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(i) 
(1) 
(2) 
In General-With respect to each rebate, grant, and tax credit 
provided to an eligible participant nnder this section, the aggregate 
value of the grants, rebates, .. and tax credits may not exceed fifty (50) 
percent of the cost to' the purchaser of the purchase and installation 
of the solar energy system\ 
Effect-Nothing in this subsection affects any solar loan or 
financing program under this section or any other law or regulation. 
Goal-It is the goal of the Philippines, through this Act and any appropriate 
18 
incentive or research and development program, to install distributed solar energy 
19 
systems on not less than 1,000,000 properties located in the Philippines by 31 December 
20 
2021. 
21 
SECTION 5. Implementing Rules and Regulations. - Within sixty (60) days after 
22 
the effectivity of this Act, the Secretary shall promulgate the necessary rules and 
23 
regulations to carry out the objectives of this Act. 
24 
SECTION 6. Authorization of Appropriations. - To carry out the provisions of this 
4 


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• 
1 
Act, there are authorized to be appropriated such sums as may be necessary for each 
2 
fiscal year. 
3 
SECTION 7, Separability Clause, - If any provision or part hereof is held invalid 
\, 
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or unconstitutional, the remainder of the law or the provision not otherwise affected shall 
5 
remain valid and subsisting. 
\ 
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SECTION 8. Repealing Clause. - Any law, presidential decree or issuance, 
7 
executive order, letter of instruction, administrative order, rule, or regulation contrary to 
8 
or inconsistent with the provisions of this Act is hereby repealed, modified, or amended 
9 
accordingly. 
10 
SECTION 9. Effectivity Clause. - This Act shall take effect fifteen (15) days after 
11 
its publication in at least two (2) newspapers of general circulation. 
Approved, 
/jab 
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