Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro 
Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ________ 
Introduced by: Rep. Dan S. Fernandez 
EXPLANATORY NOTE 
Solar power generation has been around for a while. Solar technology is becoming 
more and more affordable each day such that the same can be utilized by ordinary 
households to augment their electricity needs. To optimize the solar energy generated 
by end-users, we have introduced a net-metering program as early as 2008. 
Net-metering allows end-users to participate in a distributed power generation thereby 
enabling them to contribute to the electricity grid while consuming electricity 
themselves. Under the net-metering program, excess power generated by end-users 
will be delivered and recorded through a bidirectional Net Meter to the local 
distribution grid of the electric distribution utility and this surplus energy can be used 
to offset the net metered customers electric bill and provide the utility or electric 
cooperative much needed added generation capacity derived from new renewable 
energy sources to fulfill its renewable portfolio standard goals. Installed solar 
technology has the immediate benefit of offsetting end user electric consumption.  In 
effect, end-users are able to generate savings on their electricity bill and protect 
themselves against rising electricity prices while contributing in nation building by 
sharing its energy sources with the Philippine Grid.  
Despite solar technology being economically and commercially accessible, out of 
millions of households, we still only have 5,716 end-users participating in the net-
metering program as of fiscal year 2021, reflecting less than 1% of the energy mix.  
The Philippine grid is dangerously low in energy supplies with realized rotational outages due 
to shortages of electricity supply.  The low participation rate can be attributed to two 
factors: (1) the 100-kW cap for end-users thereby precluding large electricity 
consumers from participating in the program; and (2) the cumbersome and 
unstandardized requirements and process for participating in the program, particularly 
the prerequisite permitting requirements in obtaining Net Metering which can take 4 
months to over a year. 
May 16, 2023
2:44 pm
8146


This bill seeks to address these two hindrances in the mass utilization of solar 
technology and participation in the net-metering program. 
In view of the foregoing, the early approval of this bill is earnestly sought. 
DAN S. FERNANDEZ 
Lone District of Sta. Rosa City 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro 
Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ________ 
Introduced by: Rep. Dan S. Fernandez 
AN ACT ENHANCING THE PROMOTION AND ADOPTION OF SOLAR 
TECHNOLOGY AND NET-METERING AMONG 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 of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Section 4 of Republic Act No. 9513 is hereby amended to read as follows: 
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) 
in 
capacity] 
F O U R  
T I M E S  
T H E  
C O N N E C T E D  
L O A D  
O F  
T H E  
E N D  
U S E R .
S I N C E  
R E N E W A B L E  E N E R G Y  S U C H  A S  S O L A R  I S  I N T E R M I T T E N T  
W I T H  A  C A P A C I T Y  U S A G E  F A C T O R  O F  2 0  P E R C E N T ,  
A L L O W I N G  4  T I M E S  T H E  C O N N E C T E D  L O A D  R A T I N G  O F  
T H E  Q U A L I F I E D  E N D  U S E R  W O U L D  A S S U R E  A D E Q U A T E  
C A P A C I T Y  T O  G E N E R A T E  E N E R G Y  T O  F U L F I L L  T O T A L  
D E C A R B O N I Z A T I O N  G O A L S  O N  A  S O L A R I Z E D  C U S T O M E R  
L E V E L ;  
X X X  
8146


 
SEC. 2. Section 10 of Republic Act No. 9513 is hereby amended to read as 
 
follows: 
 
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     
(a) establish net metering interconnection standards and pricing methodology 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 (b) DETERMINE, 
EVERY TWO (2) YEARS, THE MAXIMUM HOSTING POWER CAPACITY OF THE 
DISTRIBUTION UTILITY OR ELECTRIC COOPERATIVE TAKING INTO ACCOUNT ITS 
RPS GOALS, MAXIMUM RENEWABLE ENERGY PENETRATION FOLLOWING 
GLOBALLY ACCEPTED PRACTICES WITH CLOSE COORDINATION WITH NREB, 
RENEWABLE ENERGY INSTALLER AND THE ERC QUALIFY FOR NET-METERING IN 
DISTRIBUTED GENERATION AS DEFINED IN SECTION 4 (J) OF THIS ACT, 
CONSIDERING THE FOLLOWING FACTORS: 
 
 
i) 
 ENSURE STABILITY OF THE DISTRIBUTION GRID AND ITS APPROPRIATE CAPACITY 
ADDITIONS. 
 
IDENTIFICATION OF PARTICULAR GRIDS OR LOCAL GRIDS THAT WOULD NEED 
PRIORITIZED INSTALLATIONS OR FAST TRACKING OF ADDITIONAL NET METERING 
AGREEMENTS TO MINIMIZE VOLTAGE DROP AND SYSTEMS LOSS, AND IDENTIFYING 
AREAS THAT WOULD NEED NET METERING WITH ENERGY STORAGE SYSTEMS TO HELP 
IN FREQUENCY OR VOLTAGE SUPPORT OR TIMELY CAPACITY UPGRADES ON AREAS 
THAT HAVE PROJECTED OVERPENETRATION OF DISTRIBUTED ENERGY SOURCES. 
THESE AREAS WOULD NEED URGENT SERVICE CAPACITY CAPITAL INVESTMENTS TO 
ENABLE THE DISTRIBUTION UTILITY HOST ADDITIONAL RENEWABLE ENERGY SO THAT 
THE UTILITY AND 
COOPERATIVES 
CAN MEET MANDATED AND PROJECTED 
RENEWEABLE PORFTOLIO STANDARDS.   FAILURE OF HOSTING ADDITIONAL 
APPROPRIATE RENEWABLE ENERGY SOURCES FROM NET METERING WHEN 
RENEWABLE PORFOLIO STANDARDS HAVE NOT BEEN MET WOULD INCUR ADDITIONAL 
PENALTY EQUIVALENT TO THE THEORETICAL YIELD OF THE RENEWABLE ENERGY 
FACILITIES DENIED NET METERING APPLICATION VALUED AT ITS KWH NAME PLATE 
PRODUCTION MULTIPLIED BY CURRENT GENERATION CHARGE. THIS PENALTY WILL BE 
CREDITED AGAINST THE QUALIFED END USERS ENERGY CHARGES.  
 
ii) 
RETAIL RATES OF CAPTIVE CUSTOMERS AND ESTABLISHMENT OF PUBLISHED 
MONTHLY GENERATION RATES FROM ENERGY DERIVED FROM BEHIND THE METER 
RENEWABLE ENERGY SOURCES, ACCOUNTING FOR ITS CONTRIBUTION TO THE GRID 
ON THE TIME OF ITS DISPATCH.  THIS IS TO ENSURE THAT ERC WOULD PROVIDE 
ACCURATE AND EQUITIOUS VALUATION OF EXPORTED ENERGY TO REFLECT MARKET 
REALITIES.  BLENDED GENERATION CHARGE IS THE MINIMUM VALUE GIVEN FOR 
EXPORTED ENERGY OR FOR SYSTEMS IN EXCESS OF 100KW AT POINT OF DISPATCH, 
WITH A VARIABLE RATE REFLECTING ON THE INCREASED GENERATION COSTS 
INCURRED BY THE GRID DURING DAYTIME SOLAR HOURS 
 


 
CREATION OF DISPATCHABLE ENERGY RATE STRUCTURE AND TECHNICAL 
STANDARDS TO INCENTIVIZE NET METERING SYSTEMS WITH ENERGY STORAGE TO 
FORCE DISCHARGE ADDITIONAL ENERGY STORED IN BATTERIES TO SUPPORT THE 
NATIONAL GRID DURING TIMES OF YELLOW OR RED ALERT OR WHEN WESM ENERGY 
RATES HIT PRICE THRESHOLD NUMBERS. THIS IS TO LOWER THE SEVERITY OF 
ACUTE POWER SHORTAGES AND ENCOURAGE INVESTMENTS TO ENERGY STORAGE 
THAT CAN HELP REGULATE THE PHILIPPINE GRID WITH MUCH NEEDED TIMELY 
ENERGY INJECTION 
 
iii) 
OTHER POUCIES UNDER THIS ACT AND REPUBLIC ACT NO.9136, OTHERWISE KNOWN 
AS THE ELECTRIC POWER INDUSTRY REFORM ACT OF 2001, SUCH AS RETAIL 
COMPETITON AND OPEN ACCESS. 
 
iv) 
FOR PURPOSES OF ESTABLISHING A PRICING METHODOLOGY FOR NET METERING, 
THE ERC SHALL APPLY THE SAME REFERENCE TO BOTH THE ELECTRICITY 
IMPORTED FROM AND EXPORTED TO THE DISTRIBUTION GRID BY END-USERS. 
 
           THE DISTRIBUTION UTILITY SHALL BE ENTITLED TO RENEWABLE ENERGY CERTIFICATE 
RESULTING FROM NET-METERING ARRANGEMENT WITH QUALIFIED END USER.  
RENEWABLE ENERGY CERTIFICATES EARNED BY THE UTILITY IS THE EXCESS OR 
SURPLUS ENERGY DELIVERED BY THE QUALIFIED END-USER RECORDED AS EXPORT 
BY THE NET METERING METER, WHILE SELF CONSUMED RENEWABLE ENERGY FROM 
THE CONSUMER CONSTITUTES RENEWABLE ENERGY CERFIICATES EARNED BY THE 
CONSUMER WHO AT THEIR OPTION CAN TRADE IT WITH THE DISTRIBUTION UTILITY OR 
ANY THIRD PARTY IN THE RENEWABLE ENERGY CERTIFICATE MARKET. 
 
 
THE VALUE OF RECS EARNED BY THE UTILITY IS REFLECTED BY THE ACTUAL KWH 
TRADED OR EXPORTED TO THE UTILITY VIA NET METERING.   REC CONSUMER IS THE 
KWH GENERATED BY THE QUALIFIED END USERS RE FACILITY – KWH EXPORTED TO 
THE UTILITY. METERING TECHNOLOGIES THAT SUPPORT METERS BESIDE RENEWABLE 
ENERGY FACILITY SUCH AS BUT NOT LIMITED TO PLC CONTROLLED OR RF BASED 
ELECTRIC METERS SHALL BE PROVIDED AT EXPENSE OF THE DISTRIBUTION UTILITY IF 
THEY WOULD NEED TO AVAIL OF THE QUALIFIED END USERS SELF CONSUMPTION 
RECS.  ALL WIRING COSTS, CONDUIT AND REASONABLE LABOR COSTS SHALL BE 
SHOULDERED IN ACCOUNT OF THE DISTRIBUTION UTILITY FOR THE INSTALLATION OR 
MAINTENANCE OF THE REC SELF CONSUMPTION METER.  
 
 
QUALIFIED END USERS OR SELF CONSUMPTION RE GENERATION PLANT OWNERS AT 
THEIR OPTION CAN INSTALL THEIR OWN SELF CONSUMPTION REC METERING FACILITY 
PROVIDED THEY SPEND FOR THE CONSTRUCTION OF THE RE FACILITY AND ITS 
ATTENDANT RE REC METERING COSTS AND SELL THE RECS TO ANOTHER PARTY 
ASIDE FROM THE HOSTING DISTRIBUTION UTILITY OR ELECTRIC COOPERATIVE. 
 
            PROPER ACCOUNTING OF THE RENEWABLE ENERGY CERTIFICATE IS AN IMPORTANT 
MECHANISM TO INCENTIVIZE DISTRIBUTION UTILITIES TO INCREASE HOSTING 
CAPACITY FOR RE AND PROVIDE A SECONDARY MARKET FOR CONSUMERS WHO PUT 
IN 
RE 
GENERATION 
AND 
ACTUALIZATION OF 
THEIR 
RENEWABLE 
ENERGY 


CERTIFICATES EARNED FROM THEIR SELF CONSUMPTION OF RENEWABLE ENERGY. 
 
 
THE DISTRIBUTION UTILITY SHALL BE ABLE TO USE THIS RE CERTIFICATE IN 
COMPLIANCE WITH ITS OBLIGATION UNDER RPS AND CAN CONTRACT TO PURCHASE 
SELF CONSUMPTION RECS FROM QUALIFIED END USERS IN NET METERING AT 
ESTABLISHED MARKET RATES OR USE IT TO OFFSET ANY OUTSTANDING OBLIGATIONS 
OF THE CONSUMER WITH THE DISTRIBUTION UTILITY OR ELECTRIC COOPERATIVE 
 
 
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. 
 
 
SEC. 3. Standardization of Permits and Application Requirements. The Department of Energy 
shall standardize and streamline the process and requirements for the installation of solar projects 
and application for net-metering. The said process and requirements shall be uniform across all 
distribution utilities and local government units, provided that all applications for net-metering shall 
be acted upon within thirty (30) days from the complete submission of correct and valid 
requirements. A standard net-metering agreement between the distribution utility and end-
users shall be included in the Implementing Rules and Regulations of this Act and shall be 
deemed integrated in every application of end-users for net-metering. 
 
 
Requirements for the standardization is that permits and application requirements strictly adhere 
to technical aspects associated in the installation of a small scale renewable energy facility. 
Qualified end users by virtue of an existing account with the distribution utility are automatically 
qualified to avail of Net Metering. New construction or new residential, commercial and industrial 
entities would need Final Certificate of Electrical inspection as prerequisite for installation of Net 
Metering.  Other requirements or permits such as Occupancy Permit for existing qualified end 
users, electronics permit, and others shall be waived nor additional requirements given by the 
LGU which are outside the requirements set forth by the Department of Energy.  There shall only 
be an Electrical permit and all electrical works shall be performed by qualified personnel with solar 
or relevant work experience.  A valid PCAB license is needed for installations over 200 amperes 
or 44kWp.  Solar permits are deemed accepted within the prescribed period in line with ARTA or 
14 days as long as permit fees are paid and permit fees should not exceed 1% of construction 
value of the renewable energy facility nor take more than four (4) hours of administrative burden 
to fill out and approved. 
 
 
             Within one year from the approval of this Act,  the Department of Energy shall prepare an online 
portal for the permitting of Net Metering installations, where critical installation milestones are 
documented, photographed and uploaded by solar installer and cashless/contactless permitting 
transaction fees are paid to the hosting LGU. Permitting portal would handle the LGU Permitting 
fee,  ERC CoC and generation of accepted QR code that the utility shall accept as the prerequisite 
requirement to enact the net metering agreement.  
 
 
 
 


 
            Standardization of all associated fees in availing of Net Metering is as follows: P500 for Net 
Metering of RE systems of 1kWp to 10kWp.  P5000 for systems 10kWp to 50kWp, P10,000 for 
system sizes of 50kWp and above.   Installations of over 100kWp would necessitate actual 
inspection from the office of the building official to ensure all codes from PEC are met and subject 
to a 30 day approval timeline or random inspections performed within 30 days of issuance of 
permit for smaller systems. 
 
Local government units or building departments shall show cause if permitting period is over 30 
days; permits over 60 days shall be deemed approved or fall under the provisions of ARTA law.  
Distribution Utilities and electric cooperatives have 30 days to deliver Net Metering agreement 
upon presentation of Certificate of Final Electrical inspection with a one time extension of 30 days 
provided a written show cause certification is issued on delays longer than 30 days.  Local 
government units or building departments with documentable permitting delays longer than 3 
months can be held administratively liable. 
 
 
SEC. 4. Implementing Rules and Regulations. The Department of Energy, National Renewable 
Energy Board, Energy Regulatory Commission, and Department of Interior and Local Government, 
in consultation with the concerned public and private stakeholders, shall jointly formulate and 
promulgate the Implementing Rules and Regulations of this Act within sixty (60) from its effectivity. 
 
 SEC. 5. Separability Clause. - If, for any reason, any provision of this Act is declared to 
be unconstitutional or invalid, the other sections or provisions hereof which are not affected 
thereby shall continue to be in full force or effect. 
 
SEC. 6. Repealing Clause. - All laws; decrees, orders, rules and regulations or parts thereof 
which are inconsistent with or contrary to the provisions of this Act are hereby repealed, 
amended, or modified accordingly. 
 
 
SEC. 7. Effectivity. -This Act shall take effect fifteen (15) days after its complete publication 
in the Official Gazette or in a newspaper of general circulation. 
 
 
 
 
Approved, 
 
 
 
 
.