Net Metering in the Philippines: RA 9513, Meralco and the 2026 Rule Changes

The Philippines has had a legal right to net metering since the Renewable Energy Act of 2008 (RA 9513). What it does not have is 1:1 retail-rate netting - and that distinction is where most disappointed expectations come from.

Rates and procedural rules change. Confirm current terms with your distribution utility before purchasing.

The critical detail: you are credited at the generation rate

Your electricity bill is not one price. It is a stack: generation, transmission, distribution, system loss, taxes and universal charges.

When you export under Philippine net metering, you are credited at the blended generation rate - the generation component only. You are not credited for the transmission and distribution portions, because the utility argues it still incurred those costs to move the energy.

For Meralco customers, the blended generation charge has typically sat in the region of PHP 5-6 per kWh, against a total residential rate substantially higher than that.

So the practical position is: you buy at the full stacked rate and sell at roughly the generation slice. That is structurally net billing, even though it is called net metering. We break the models down in net metering vs net billing vs gross metering.

The consequence is the familiar one: self-consumption is worth considerably more than export. A unit you use yourself avoids the entire stacked rate. A unit you export earns only the generation slice.

What changed in 2026

A Department of Energy circular issued in April 2026 addressed the process, which had long been the real bottleneck rather than the tariff:

• Distribution utilities must approve or reject net-metering applications within 10 working days. This is the most significant procedural change for installers since RA 9513 was passed.
• LGUs must issue electrical permits and inspection certificates within 3 working days.
• The non-residential capacity cap rose from 100 kW to 1 MW, opening the scheme to much larger commercial systems.

If you applied before 2026 and found the process slow, it is worth knowing the standard has changed - and that the timelines are now something you can hold your DU to.

Eligibility

• Grid-tied system, minimum 1 kW. Off-grid and battery-only setups do not qualify.
• Your system's AC output must not exceed your contracted demand with the distribution utility. This is the cap that most often forces a design change.
• Bidirectional meter, supplied and installed by the DU.

The contracted-demand limit is worth checking early, because it is set by your existing service agreement rather than by your roof space or your consumption.

How credits work

Exports become peso credits on your bill, calculated at the generation rate. They offset your charges, and unused credit carries forward to subsequent billing periods.

This is a meaningful difference from schemes that bank units: a peso credit is fixed in value at the moment it is earned, whereas a unit credit tracks whatever the tariff does. When generation rates rise, unit banking is better; when they fall, peso credits protect you.

The application sequence

1. Confirm your contracted demand and size the system within it.
2. Submit the net-metering application to your DU with system specifications.
3. DU evaluation - distribution impact study, now under the 10-working-day standard.
4. Secure LGU electrical permit and inspection.
5. Installation by a qualified contractor.
6. DU inspection and meter change to a bidirectional meter.
7. Net-metering agreement signed, then energisation.

Under-documented applications remain the main cause of delay. The timelines apply to a complete file.

Making the economics work

Because export earns only the generation component, the design brief in the Philippines is clear:

• Size to your daytime load. Excess capacity earns the low rate, not the high one.
• Shift consumption into daylight - laundry, ironing, pool pumps, water heating.
• Air conditioning is the biggest lever in most Philippine households. Pre-cooling in the late afternoon while the array is still producing converts low-value export into high-value self-consumption.
• Treat credits as a bonus, not the core of the business case.

You can check where you actually stand each cycle with our free net metering calculator - it works in pesos, separates imports from exports, and carries your previous credit forward.

Frequently asked questions

Is net metering in the Philippines really net metering? By law and by name, yes. In economic substance it behaves like net billing, because export is credited at the generation rate rather than the full retail rate.

How much is the credit worth? The blended generation rate, historically around PHP 5-6/kWh for Meralco customers. Check your current bill for the generation charge - that is roughly what an exported unit earns.

Can I install a system bigger than my contracted demand? Not under net metering. You would need to apply to increase your contracted demand, which is a separate process.

What if my DU misses the 10-day deadline? The circular sets it as a requirement. Keep dated records of your submission - having the paperwork in order is what makes a timeline enforceable in practice.

Do credits expire? Credits carry forward on your account. Confirm the specific treatment with your DU, as the handling of long-accumulated balances can differ.