Meralco Guide · Updated April 2026
How to Read Your Meralco Bill — Every Charge Explained
Your Meralco bill has over 10 separate line items. Most people only look at the total. Understanding each charge helps you see exactly where solar saves you money — and where it doesn't.
Why your bill matters for solar
When you get a solar proposal, the two most important numbers from your Meralco bill are your monthly kWh consumption and your effective rate per kWh. These two numbers determine how large a system you need and how much you will save.
Understanding each charge also clarifies exactly how solar saves you money. Energy your panels generate and you consume directly avoids the full retail rate (~₱14.35/kWh as of April 2026) — covering Generation, Transmission, Distribution, System Loss, Universal Charge, and taxes for those avoided kWhs. For households consuming more than 650 kWh/month, the effective all-in rate is even higher (₱15.50+/kWh) due to the Energy Tax under BP 36. Energy you export to the grid is credited only at the blended generation rate (~₱6.00/kWh), because Meralco's network still has to transmit and distribute that energy to other customers. This is why self-consuming solar energy is always more valuable than exporting it.
Every charge on your Meralco bill — explained
Generation Charge
₱5.50 – ₱7.00/kWhThe cost of the electricity itself — what Meralco pays its power suppliers (coal, gas, hydro, geothermal plants). This is the largest component of your bill.
Solar impact
Solar offsets this charge most effectively. The net metering buyback rate (~₱6.00/kWh) is based on this component.
Transmission Charge
₱0.85 – ₱1.10/kWhThe cost of moving electricity from power plants across the national grid to your area. Paid to NGCP (National Grid Corporation of the Philippines).
Solar impact
Offset by self-consumed solar. Generating and using your own electricity reduces your imported kWh, proportionally reducing this per-kWh charge. Only exported energy still incurs the transmission cost — which is why the net metering buyback rate is lower than your full retail rate.
Distribution Charge
₱1.40 – ₱1.80/kWhMeralco's fee for operating and maintaining the local distribution lines, transformers, and equipment in your area.
Solar impact
Offset by self-consumed solar. Drawing less electricity from the grid directly reduces this per-kWh charge. The net metering buyback rate is lower than your retail rate because exported energy still requires Meralco's distribution network — but energy you self-consume bypasses this charge entirely.
Supply Charge
₱0.30 – ₱0.50/kWhMeralco's retail service fee for billing, customer service, and account management.
Solar impact
Partial offset. The Supply Charge has two components: a fixed monthly customer charge (not offset by solar) and a per-kWh component (offset by self-consumed solar). The fixed portion continues regardless of how much solar you generate.
Metering Charge
₱0.15 – ₱0.25/kWhThe cost of reading and maintaining your electricity meter.
Solar impact
After net metering, this covers the bidirectional meter.
Lifeline Rate Subsidy
Credit or chargeCross-subsidy where higher-consuming customers subsidise low-income households using less than 100 kWh/month.
Solar impact
Offset by self-consumed solar. This charge is calculated on your total imported kWh — reducing grid imports with solar directly lowers it. In cases where solar significantly cuts a household's monthly grid usage, it can also shift the household into a different consumption bracket.
Senior Citizen Subsidy
Small per-kWh cross-subsidyCross-subsidy billed to all customers to fund the 5% electricity discount given to registered senior citizen households (under Republic Act 9994). Appears as a separate line item on the bill.
Solar impact
Offset by self-consumed solar. Like the Lifeline subsidy, this is calculated on a per-kWh imported basis — reducing grid imports proportionally reduces this charge.
System Loss Charge
₱0.50 – ₱0.70/kWhCovers electricity lost in transmission and distribution lines before it reaches your home.
Solar impact
Offset by self-consumed solar. System Loss is charged per kWh of energy drawn from the grid. Every kWh your panels produce and you use directly reduces your grid draw, lowering this charge proportionally.
Universal Charge
₱0.25 – ₱0.35/kWhERC-mandated charge covering two components: Missionary Electrification (UC-ME), which funds electricity access for remote and off-grid communities, and Environmental Charge (UC-EC) for decommissioning and cleanup of power facilities.
Solar impact
Offset by self-consumed solar. Billed per kWh of grid electricity imported — self-consumed solar directly reduces imported kWh and therefore both UC-ME and UC-EC proportionally.
FIT-All (Feed-in Tariff)
₱0.20/kWhFunds subsidies for large renewable energy plants (wind, solar farms, run-of-river hydro) under the FIT program. Raised from ₱0.1189/kWh to ₱0.2011/kWh as of January 2026 — the rate more than doubled following ERC order.
Solar impact
Offset by self-consumed solar on the same per-kWh imported basis as Transmission, Distribution, and System Loss.
GEA-All (Green Energy Auction)
₱0.04/kWhNew ERC charge introduced in January 2026 at ₱0.0371/kWh. Funds the Green Energy Auction (GEA) program, which procures renewable energy through competitive bidding. A separate line item from FiT-All, visible on bills from 2026 onward.
Solar impact
Offset by self-consumed solar on the same per-kWh imported basis as FiT-All and all other per-kWh grid charges.
VAT (12%)
12% of subtotalValue Added Tax applied to base charges. On your bill, VAT, Local Franchise Tax, and Energy Tax typically appear together under a single "Government Taxes" line.
Solar impact
Self-consumed solar reduces the base charges (Generation, Transmission, etc.) — directly lowering the VAT and Local Franchise Tax calculated on them.
Energy Tax (Batas Pambansa Blg. 36)
Applies above 650 kWh/monthA graduated national tax on residential electricity consumption above 650 kWh/month. Below the threshold there is no Energy Tax; above it, the tax applies to every kWh drawn from the grid beyond 650. This is why high-consumption households pay a noticeably higher effective rate than the ERC benchmark rate suggests.
Solar impact
One of the most powerful solar benefits for high-consumption households. If solar reduces your monthly grid imports from 800 kWh to below 650 kWh, the Energy Tax is entirely eliminated — not just reduced proportionally. This threshold effect makes solar disproportionately valuable for households currently above 650 kWh/month.
Taxes and Other Charges
VariesLocal Franchise Tax (LFT) calculated as a percentage of your base charges (Generation, Transmission, Distribution, System Loss), and other local regulatory fees. Bundled with VAT and Energy Tax under "Government Taxes" on your bill.
Solar impact
Directly offset. Because LFT is calculated as a percentage of base charges, self-consumed solar reduces those base charges — and the LFT falls proportionally alongside them.
What to find on your bill for solar sizing
When using our Solar AI Engine, uploading your Meralco bill photos lets our AI extract these key figures automatically. Here is where to find them if you want to enter them manually.
Total kWh consumed
Where: Prominently displayed on first page
This is your monthly consumption — the primary input for sizing your solar PV system correctly.
Billing period (dates)
Where: Top of the bill
Tells us the exact month covered. We use multiple months to understand seasonal variation.
Rate per kWh
Where: Detailed charges section
Used to calculate your current cost and project future savings as rates increase.
Generation charge per kWh
Where: Charges breakdown
This is the net metering buyback rate — what Meralco credits you for exported solar energy.
Previous and current reading
Where: Meter reading section
The difference between readings is your actual consumption for the period.
How to calculate your effective rate per kWh
Your effective rate is simply your total bill divided by your kWh consumption. This is more useful than the generation rate alone because it captures all the charges solar actually reduces.
Example calculation
Total bill amount: ₱8,610
Monthly kWh consumption: 600 kWh
Effective rate = ₱8,610 ÷ 600 = ₱14.35/kWh
This effective rate is what our Solar AI Engine uses to calculate your monthly savings — not just the generation rate. Households above 650 kWh/month will see a higher effective rate due to the Energy Tax (BP 36).
Sources & References
- [1]Republic Act No. 9136 — Electric Power Industry Reform Act (EPIRA) of 2001 — LawPhil
- [2]Energy Regulatory Commission Philippines — Retail Electricity Rates — ERC
- [3]Meralco — Understanding Your Bill — Manila Electric Company
Upload your bill — we read it for you
Our Solar AI Engine extracts your kWh usage and rate automatically from photos of your Meralco bill. No manual entry needed.
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