What Is Net Metering in the Philippines?
Net metering is a billing program under Republic Act 9513 that allows Meralco customers with solar panel systems to export their excess electricity to the Meralco grid and receive credits on their next monthly bill. It is the mechanism that makes solar panel installation financially viable for homeowners and businesses in Metro Manila, Cavite, Laguna, and Bulacan.
Governed by ERC · Legal basis: RA 9513 · Available to all Meralco customers with solar up to 100 kW
DOE-Accredited
Solar Installer
ERC Net Metering
Accredited
Meralco-Accredited
Solar Installer
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Serving:
Metro Manila
Cavite
Laguna
Bulacan
Net Metering in the Philippines Explained Simply
Net metering is a program under RA 9513 (Renewable Energy Act of 2008) where a Meralco customer installs a renewable energy system at their property. Any excess electricity produced by the solar panels that is not consumed by the household or business is exported to the Meralco distribution grid. Meralco then converts the value of that exported electricity into credits, which are deducted from the customer’s next monthly electricity bill.
In simple terms: your solar panels generate electricity during the day. You use what you need. Whatever you do not use goes to Meralco. Meralco credits you for it. The credit reduces what you owe on your next bill.
Without net metering, any solar electricity you do not consume during the day would be wasted. Net metering is what makes a solar panel system economically complete for Meralco customers.
How Net Metering Works for Meralco Customers
Net metering works through a bi-directional meter installed by Meralco at your property. Unlike a standard electricity meter that only measures power flowing into your home, a bi-directional meter measures power in both directions.
1
Solar Panels Generate Electricity
During daylight hours, your solar panel system generates DC electricity. The inverter converts this to AC electricity that your home or business can use.
2
Your Property Uses Solar Power First
All appliances, lights, and equipment running during the day draw power from your solar system first. You consume solar electricity at zero cost, reducing what you draw from the Meralco grid.
3
Excess Power Is Exported to Meralco
If your solar panels generate more electricity than your property consumes at any moment, the surplus automatically flows through the bi-directional meter into the Meralco distribution grid.
4
Meralco Credits Your Bill
Meralco records the exported kWh and converts it to a peso credit based on the current applicable rate. This credit is applied directly to your next monthly electricity bill.
5
At Night, You Draw from the Grid as Normal
When your solar panels are not generating (at night, or during heavy cloud cover), your property draws electricity from Meralco as usual. The bi-directional meter records this import separately from the export.
6
Your Net Bill Reflects the Difference
At the end of the billing period, your Meralco bill reflects the net difference: electricity imported from Meralco minus the credits earned from electricity exported to Meralco. A properly sized solar system can reduce a Meralco bill by 50 to 80 percent.
The Legal Basis: Republic Act 9513 and the ERC
Net metering in the Philippines is not optional or informal. It is a legally mandated program with enforceable customer rights.
Republic Act 9513 (Renewable Energy Act of 2008)
RA 9513 is the primary law governing renewable energy in the Philippines. It mandates that distribution utilities like Meralco must accept and credit surplus electricity from qualified renewable energy systems. The law also provides the VAT exemption on solar panels, inverters, and installation components.
ERC Net Metering Program
The Energy Regulatory Commission (ERC) administers the Net Metering Program and sets the rules that Meralco must follow. The most recent regulatory update is the ERC Advisory dated September 22, 2025, which updated processes and requirements for all on-grid distribution utilities including Meralco.
Meralco as Distribution Utility
Meralco is the distribution utility responsible for net metering implementation across Metro Manila, Cavite, Laguna, and Bulacan. Meralco manages the application process, conducts the Distribution Impact Study, installs the bi-directional meter, and administers the monthly bill credits.
Proposed ERC Amendments (DC2024-08-0025)
The ERC has proposed amendments to the Net Metering Rules that strengthen customer protections. Key proposals include making net metering credit carry-over mandatory (changed from discretionary to required), and confirming that net metering credits transfer to a new property owner when a solar-equipped home is sold.
Who Is Eligible for Net Metering in the Philippines?
Net metering eligibility applies to any Meralco customer who installs a solar panel system within the Meralco franchise area, provided the system meets the program requirements.
SIZE
Maximum System Size: 100 kW
Net metering is available for solar systems up to 100 kilowatts (kW AC output). Most residential systems range from 3 kWp to 10 kWp, which is well within the 100 kW limit. Commercial systems up to 100 kW also qualify. Note: the 100 kW limit refers to AC output capacity, not the DC panel rating in kWp.
AREA
Must Be Within Meralco Franchise Area
Net metering under these guidelines applies to properties within the Meralco distribution franchise area, covering Metro Manila, Cavite, Laguna, Bulacan, and other Meralco-served areas. Properties served by other distribution utilities follow different procedures set by their respective utilities and the ERC.
INST
Must Be Installed by an Accredited Installer
Meralco requires that the solar system be installed by a Meralco-accredited installer. Operating a solar system without proper registration exposes the customer and neighbors to safety risks and disqualifies the system from earning net metering credits. SolarPro Install is a Meralco-accredited installer.
DOCS
Must Complete the Application Process
Net metering does not activate automatically when a solar system is installed. The customer or their installer must submit the complete application to Meralco, including the Application Form, Certification of Final Electrical Inspection (CFEI), Amended Net-Metering Agreement (NMA), and COC Application Fee. SolarPro Install manages this entire process on your behalf.
How Much Can Net Metering Reduce Your Meralco Bill?
The actual bill reduction depends on your system size, how much electricity you consume during the day versus at night, and your roof orientation. These are estimated monthly bill reductions based on typical residential usage patterns in Metro Manila, Cavite, Laguna, and Bulacan.
3 kWp System₱2,000–₱3,500Est. monthly savings
5 kWp System₱3,500–₱5,500Est. monthly savings
8 kWp System₱5,500–₱8,000Est. monthly savings
10 kWp System₱8,000–₱12,500Est. monthly savings
Savings are estimated based on Metro Manila solar irradiance of 5.1 kWh per square meter per day and current Meralco residential rates of approximately ₱11 to ₱13 per kWh. Actual savings depend on roof orientation, shading, and daily consumption patterns. Net metering credits have no expiry within the billing month and roll over to the following month’s bill.
See Full Savings Estimates, ROI Timeline, and Payback Calculator →
Meralco Hosting Capacity per Transformer
Meralco limits the total solar capacity that can be connected to each distribution transformer without adverse effects on the network. This is called hosting capacity. If the aggregate solar capacity on your transformer is already near its limit, Meralco may require a Distribution Asset Study before approving your connection.
| Transformer Size (kVA) |
Max Hosting Capacity (kW AC) |
Equivalent Solar Panels (approx.) |
| 10 kVA |
7 kW |
~20 panels |
| 15 kVA |
7 kW |
~20 panels |
| 25 kVA |
10 kW |
~28 panels |
| 37.5 kVA |
14 kW |
~40 panels |
| 50 kVA |
19 kW |
~54 panels |
| 75 kVA |
29 kW |
~83 panels |
| 100 kVA |
38 kW |
~109 panels |
Applicable to single-phase distribution transformers within the Meralco franchise area only. Meralco conducts a final assessment based on actual system conditions. Source: Official Meralco net metering guidelines.
Net Metering Does Not Activate Automatically. You Must Apply.
What You Need to Apply for Net Metering
Meralco requires four documents to process a net metering application. SolarPro Install prepares and submits all of these on your behalf as part of every solar installation.
1. Application Form
The official Meralco net metering application form, available for download from the Meralco website. Additional supporting documents may be requested by Meralco for safety, technical compliance, and accurate evaluation of your application.
2. Certification of Final Electrical Inspection (CFEI)
Issued by your Local Government Unit after your solar installation has been physically inspected and approved. Requirements differ per LGU, so it is important to coordinate with the LGU early in the process. The CFEI is submitted after the service entrance inspection and before meter replacement. SolarPro Install coordinates the CFEI on your behalf.
3. Amended Net-Metering Agreement (NMA)
A standard agreement provided by Meralco that governs the terms of your net metering connection. Notarization is NOT mandatory. Electronic signatures are accepted. SolarPro Install reviews and prepares the NMA for your signature before submission.
4. COC Application Fee
The Certificate of Compliance application fee payable to the Energy Regulatory Commission. Can be paid via ERC-LBP Link.BizPortal online, Manager’s check payable to “Energy Regulatory Commission”, or cash at a Meralco Business Center. Meralco remits cash and check payments to the ERC on the customer’s behalf.
There is also a DIMC (Difference in Meter Cost) fee that covers the cost difference between your current meter and the new bi-directional meter Meralco will install. For residential customers, the DIMC fee shall not exceed ₱3,000 per the ERC Advisory dated September 22, 2025. This fee must be settled before energization, testing, and commissioning.
See the Complete Step-by-Step Net Metering Application Guide →
Recent Updates to Philippine Net Metering Rules
The ERC issued an Advisory on September 22, 2025 and has proposed formal amendments to the Net Metering Rules (DC2024-08-0025). These updates strengthen customer protections and clarify program requirements.
NEW
Credit Carry-Over Becomes Mandatory
Under the proposed amendment, net metering credits shall be banked and rolled over to succeeding billing periods as a mandatory requirement. The current rule uses discretionary language. This is a stronger protection for solar customers who generate more than they consume in any given month.
NEW
Credits Transfer to New Property Owner
When a property with a solar system is sold, accumulated net metering credits transfer to the new owner. The new owner must execute a new Net-Metering Agreement with Meralco and comply with documentation requirements. This is significant for property value discussions.
NEW
REC Meter Is Now Voluntary
The Renewable Energy Certificate (REC) meter installation is voluntary. Customers who choose not to install a REC meter must sign a notarized affidavit of waiver. RECs can still be calculated without a dedicated meter using the official ERC formula based on installed capacity and capacity factor.
NEW
DIMC Fee Capped at ₱3,000 for Residential
The ERC Advisory dated September 22, 2025 confirmed that the DIMC fee for residential net metering customers shall not exceed ₱3,000. This protects homeowners from inflated meter replacement charges. Commercial customers may have different DIMC fee structures based on their meter type.
Frequently Asked Questions About Net Metering in the Philippines
What is the ERC Net Metering Program?
The ERC Net Metering Program is the official government program administered by the Energy Regulatory Commission that allows customers of distribution utilities like Meralco to connect solar systems to the grid and earn bill credits for excess electricity they export. It was established under Republic Act 9513 (Renewable Energy Act of 2008) and is available to any Meralco customer with a solar system of up to 100 kW.
Do net metering credits expire?
Net metering credits do not expire within the billing month and roll over to the following month’s bill. Under proposed ERC amendments, credit carry-over would become mandatory rather than discretionary, giving customers stronger legal protection for any accumulated credits.
What is the maximum solar system size for net metering?
The maximum system size eligible for net metering in the Philippines is 100 kilowatts (kW) of AC output. Most residential systems range from 3 kWp to 10 kWp and are well within this limit. Commercial systems up to 100 kW also qualify. Note that the 100 kW limit refers to AC output capacity, not the DC panel rating expressed in kWp.
What is the DIMC fee and how much is it?
The DIMC (Difference in Meter Cost) fee covers the cost difference between your existing Meralco meter and the new bi-directional meter required for net metering. For residential customers, this fee shall not exceed ₱3,000 per the ERC Advisory dated September 22, 2025. The fee must be settled before Meralco can energize, test, and commission your solar system. SolarPro Install will inform you of the exact DIMC fee during the application process.
Does net metering require a special meter?
Yes. Net metering requires a bi-directional meter installed by Meralco. This meter measures both electricity imported from the Meralco grid and electricity exported to the grid by your solar system. Your existing standard meter only measures one direction and cannot support net metering. Meralco installs the bi-directional meter as part of the net metering approval process. The DIMC fee covers the cost of this meter replacement.
Can I apply for net metering myself?
Yes, you can apply directly through Meralco. However, you will need to obtain the CFEI from your LGU independently, prepare all required documents, pay the COC Application Fee, and follow up with Meralco on the Distribution Impact Study. SolarPro Install handles the complete net metering application process as part of every installation, including document preparation, CFEI coordination, COC fee management, and Meralco follow-up until your bi-directional meter is installed and your system is commissioned.
How long does the net metering application take?
The net metering application process with Meralco typically takes two to four months from document submission to bi-directional meter installation and energization. The timeline depends on Meralco’s Distribution Impact Study processing, LGU CFEI issuance time, and overall application volume. SolarPro Install manages the process and follows up with Meralco and the LGU to minimize delays.
What happens to net metering credits if I sell my property?
Under proposed ERC amendments, any accumulated net metering credits at the time of property transfer shall be transferred to the new owner, subject to documentation requirements and execution of a new Net Metering Agreement with Meralco. This means the solar system and its accrued credits add tangible financial value to a property at the time of sale.
Ready to Start Earning Net Metering Credits?
SolarPro Install is an ERC Net Metering accredited and Meralco-accredited installer. We handle your complete net metering application from document preparation to bi-directional meter installation. Request a free site assessment for your property in Metro Manila, Cavite, Laguna, or Bulacan.