Complete Guide · Updated June 2026 — Includes Sept 2025 ERC Amendments & DC2026-01-00012
Net Metering in the Philippines — Everything You Need to Know
Net metering lets you sell excess solar energy back to Meralco, reducing your bill to near zero. Here is how it works, what you earn, how to apply, and what to realistically expect.
What is net metering?
Net metering is a billing arrangement that allows solar PV system owners to export excess electricity to the distribution grid and receive a credit on their electricity bill for the energy exported.
In the Philippines, net metering is governed by the Republic Act 9513 (Renewable Energy Act of 2008) and implemented through ERC Resolution No. 9-2013. All distribution utilities — including Meralco — are required by law to offer net metering to qualified solar customers.
The Philippines uses a peso-based net billing mechanism. The peso value of energy you export (credited at the blended generation rate, ≈₱6.00/kWh) is deducted from the peso value of energy you import from the grid (billed at the full retail rate). In months where your credits exceed your gross charge, the surplus rolls over to the next billing period.
How net metering billing works
Example — Monthly Bill Calculation
In this example, 350 kWh came from your panels directly and 150 kWh came from the grid. You exported 70 kWh back. Your gross charge is ₱2,025 (150 kWh × ₱13.50), minus a ₱420 export credit (70 kWh × ₱6.00), leaving a net bill of ₱1,605 — versus ₱6,750 without solar.
Understanding the buyback rate
The buyback rate is approximately ₱6.00/kWh — the blended generation rate. This is not the same as the retail rate you pay (~₱13.50/kWh).
Your retail bill includes generation + transmission + distribution + taxes. Net metering credits you only for the generation component, because the grid still had to transmit and distribute your exported energy to other customers. This is why self-consuming your solar energy is always more valuable than exporting it.
Maximize your self-consumption
How to apply for net metering with Meralco
Install your solar PV system
Your solar PV system must be installed by a licensed electrical engineer and comply with the Philippine Electrical Code. The inverter must be grid-tied and capable of anti-islanding protection.
Submit your application to Meralco
Submit a Net Metering Application to Meralco with the required documents. Under the ERC Advisory of September 2025, Meralco and all distribution utilities may only require four items from applicants — any additional documentary requirements are disallowed. Under the February 2026 Joint Memorandum Circular (JMC 001-2026), notarization is no longer required and electronic signatures are accepted. LGUs must now issue electrical permits within 3 working days and CFEIs within 7 working days. If an LGU does not act within these periods, the application is deemed approved.
Required documents
- Duly accomplished Net Metering Application Form (from Meralco)
- Certificate of Final Electrical Inspection (CFEI) issued by your Local Government Unit
- Signed Net-Metering Agreement (ERC-approved template provided by Meralco)
- Certificate of Compliance (COC) application fee
Meralco inspection and bidirectional meter installation
Meralco will conduct a technical inspection of your installation to verify compliance. Under the ERC Advisory of September 2025, testing and commissioning must be conducted by Meralco at no cost to you — costs cannot be passed on to applicants. Upon approval, they will install a bidirectional meter that measures both energy consumed from the grid and energy exported to the grid. The meter replacement cost is capped at ₱3,000. Under ERC Resolution 15 Series of 2025, the separate REC meter is now optional — Meralco is no longer required to install one unless you request it.
Connection agreement signing
You sign a Net Metering Agreement with Meralco specifying the terms of your connection, the buyback rate, and billing procedures.
Start earning credits
Once connected, your system begins exporting excess energy to the grid. Credits appear on your monthly Meralco bill and are deducted from the energy you consume from the grid.
TrueSouth handles the entire application for you
We prepare all documents, submit the application, coordinate the Meralco inspection, and follow up until your bidirectional meter is installed and your connection is approved. You don't need to deal with any paperwork.
Frequently asked questions
What is the buyback rate for exported solar energy?
Meralco uses the blended generation rate as the buyback rate, which is approximately ₱6.00/kWh. This rate changes periodically as Meralco's power purchase agreements change. It is not the same as the retail rate you pay (~₱13.50/kWh) — only the generation component is credited, not the transmission and distribution charges.
What happens to unused credits at the end of the month?
Unused credits roll over to the following month indefinitely — they do not expire at year-end and are not converted to cash. Under ERC Resolution 15 Series of 2025, there is no annual forfeiture of accumulated credits. Credits belong to the account holder and are not automatically transferred if you sell your property — however, under the same resolution, transfer to a new owner is allowed with a written letter of consent from the original account holder. An account holder with multiple service connections may apply to share credits across their own accounts under the multi-site net metering provisions of the DOE Supplemental Policy. This is why proper system sizing is important: generate roughly what you consume, not significantly more.
Is there a maximum system size for net metering?
Under the ERC rules, the system capacity must not exceed 100 kWp for residential and commercial customers. For most homes, systems are in the 3–15 kWp range — well within the limit.
Can I export 100% of my solar generation to the grid?
Technically yes, but it is not financially optimal. The buyback rate (₱6.00/kWh) is less than the retail rate you pay (₱13.50/kWh). Every kWh you self-consume is worth more than every kWh you export. A well-sized system maximizes self-consumption and only exports the surplus.
How long does the Meralco application process take?
Under DOE DC2026-01-00012, Meralco must process and approve net metering applications within 10 working days from receipt of a complete application — if Meralco misses this deadline, the application is deemed approved. Under the February 2026 Joint Memorandum Circular (JMC 001-2026), LGUs must issue electrical permits within 3 working days and CFEIs within 7 working days, also subject to deemed approval if missed. In practice the full end-to-end process (including meter installation scheduling) still takes 30–60 days. Notarization of the agreement is no longer required and electronic signatures are accepted. TrueSouth handles the full application on your behalf.
Do I need battery storage to qualify for net metering?
No. Net metering works with grid-tied systems without batteries. Batteries are optional and are primarily for backup power during grid outages or for shifting solar generation to night-time use.
What happens during a Meralco power outage?
A pure grid-tied solar PV system (without batteries) will automatically shut down during a grid outage as a safety requirement — this is called anti-islanding protection. It prevents your system from energizing the grid while Meralco workers are repairing it. A hybrid system with batteries can continue to power your home during an outage using stored energy.
Is the net metering agreement permanent?
The Net Metering Agreement has no fixed expiration — it remains valid for the lifespan of the installation. You can terminate it if your system is decommissioned or if you close your service account.
Sources & References
- [1]Republic Act No. 9513 — Renewable Energy Act of 2008 — LawPhil
- [2]ERC Resolution No. 09, Series of 2013 — Rules Governing the Establishment of Net Metering Program for Renewable Energy — Energy Regulatory Commission Philippines
- [3]Department of Energy Philippines — Renewable Energy Program — DOE
- [4]Meralco — Net Metering Application Information — Manila Electric Company
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