Philippines Fast-Tracks Net-Metering Rollout Through Unified LGU Reforms, ERC Simplification Measures, and Expanded Consumer Incentives

Representational image. Credit: Canva

The Department of Energy (DOE) has announced a comprehensive whole-of-government push to accelerate the nationwide implementation of the Net Metering Program, introducing time-bound permitting processes for local government units (LGUs), simplified documentary requirements for distribution utilities (DUs), and expanded consumer benefits under a newly issued supplemental policy.

Through a Joint Memorandum Circular (JMC) signed by the DOE, the Department of the Interior and Local Government (DILG), and the Department of Public Works and Highways (DPWH), LGUs are now mandated to adopt standardized application forms and comply with strict turnaround times for issuing key permits and certifications. Under the circular, electrical permits must be released within three working days, while Certificates of Final Electrical Inspection (CFEIs) must be issued within seven working days upon submission of complete documents.

The JMC further provides that failure of LGUs to act within the prescribed timelines will result in applications being treated as “deemed approved,” allowing applicants to proceed with the next stages of the net-metering process based on proof of filing and payment.

Complementing the LGU reforms, the Energy Regulatory Commission (ERC), through an advisory issued on 22 September 2025, directed all grid-connected DUs to standardize and simplify documentary requirements for net-metering applications. Under the new guidelines, applicants are required to submit only a duly accomplished application form, LGU-issued CFEI, an amended net-metering agreement, and the applicable Certificate of Compliance (COC) application fee. Notarization of the amended agreement is no longer mandatory, and electronic signatures are now accepted.

To further boost participation, the DOE also issued a Supplemental Policy on 03 October 2025, expanding the benefits available to qualified end-users. Under the policy, consumers now retain ownership of Renewable Energy Certificates (RECs) generated from the electricity they consume, which may be sold or traded in the Renewable Energy Market, creating an additional revenue stream. The policy also introduces multi-site and aggregate net-metering, allowing users to share net-metering credits across multiple electricity accounts within the same DU franchise area.

“In his 2025 State of the Nation Address, the President called on government to intensify, promote, and expedite the Net-Metering Program to empower Filipinos to generate clean energy and feed excess power to the grid,” Energy Secretary Sharon S. Garin said. “These coordinated measures remove bottlenecks and make net-metering faster, simpler, and more accessible to households and businesses.”

Under the Renewable Energy Act of 2008 (Republic Act No. 9513), net-metering enables electricity consumers to install eligible renewable energy systems and export surplus electricity to the grid in exchange for credits that offset future power consumption. The program aims to enhance consumer savings, promote distributed energy generation, improve grid resilience, and reduce reliance on imported fuels.

As of December 2025, the Luzon grid recorded 17,141 qualified end-users with a combined installed capacity of around 151 kWp, accounting for 73.43% of total installations nationwide. The Visayas grid recorded 3,179 qualified end-users with an equivalent capacity of about 44 kWp (21.21%), while the Mindanao grid registered 904 users with a combined capacity of 11 kWp (5.36%).

The JMC was jointly signed by Energy Secretary Sharon S. Garin, Interior and Local Government Secretary Juanito Victor C. Remulla, and Public Works and Highways Secretary Vivencio B. Dizon, highlighting the government’s unified commitment to fast-track renewable energy adoption and empower electricity consumers.

The DOE said the harmonized permitting framework, streamlined DU requirements, and expanded consumer incentives are expected to significantly reduce processing times, lower administrative barriers, and accelerate the deployment of net-metering systems nationwide.


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