The DOE's April 2026 Net Metering Rules, Explained
TL;DR
An April 2026 DOE circular, issued under a national energy emergency declaration, cut distribution utility net metering approval to 10 working days, set a 3-working-day window for LGU electrical permits and 7 working days for the final inspection certificate, and removed the separate barangay permit step — the residential net metering cap stays at 100kW.
An April 2026 DOE circular set hard deadlines on the parts of net metering that used to be the biggest source of delay: how fast your distribution utility has to decide on your application, and how fast your LGU has to process the accompanying permits. It didn’t touch the underlying economics of net metering — the credit rate and the 100kW residential cap are unchanged — but it meaningfully shortens the wait between signing an installer contract and actually going live.
Why this circular exists
It follows a presidential declaration of a state of national energy emergency, aimed partly at accelerating distributed rooftop solar to ease pressure on the grid and on electricity costs. Energy officials framed the changes as removing bureaucratic bottlenecks that had built up around net metering since the program’s 2013 start — before this circular, some homeowners waited well beyond a month for a distribution utility decision alone.
What actually changed
- 10 working days for DU approval. Distribution utilities and electric cooperatives must approve or reject a complete net metering application within 10 working days, down from the much longer and less predictable waits homeowners dealt with previously.
- 3 working days for the LGU electrical permit. Your local Office of the Building Official must issue the electrical permit within 3 working days of a complete application.
- 7 working days for the Certificate of Final Electrical Inspection. After your final electrical inspection, the LGU has 7 working days to issue the CFEI. See our permits and requirements guide for what that document covers.
- No separate barangay permit. Residential rooftop solar no longer needs a barangay-level approval on top of the LGU and distribution utility steps.
- A “deemed approved” backstop. If a DU or LGU misses its deadline on a complete, correctly filed application, the application is treated as approved rather than left in limbo.
- Lighter paperwork elsewhere. Related reforms around the same period allow electronic signatures on net metering agreements and dropped a notarization requirement that used to add friction.
What didn’t change
The 100kW cap for net metering under RA 9513 is still in place. You may come across claims online that the DOE raised the cap to 1MW for commercial and industrial customers — we looked into this and couldn’t confirm it against DOE, ERC, or mainstream reporting, so we’re not repeating it as fact here. If you’re sizing a commercial system near or above 100kW, confirm the current cap directly with your distribution utility or the DOE before committing to a design, since this is exactly the kind of detail that’s easy to get wrong from secondhand sources.
The export credit rate is also unchanged in mechanism — exports are still credited at the generation-cost rate, roughly ₱5-7/kWh, well below retail. That rate tracks your utility’s generation charge, which moves up and down with fuel costs, so check your latest bill for the current figure. See our net metering explainer for how that credit actually shows up on your bill.
What it means for homeowners
Mainly, a shorter and more predictable wait. Where the process used to have open-ended stretches at both the LGU and DU stages, you now have fixed ceilings at each step, with a deemed-approved fallback if either misses its window. See our step-by-step application guide for how the timeline plays out in practice — the paperwork itself hasn’t gotten simpler, but the clock on it is now much shorter.
What it means for businesses
The same faster timelines apply to commercial applications within the existing 100kW cap, which matters for small businesses sizing a system against daytime operating hours. If you’re considering a system that would put you at or above the current cap, treat that as a design constraint to confirm early, not something to assume away based on unverified reports of a higher limit.
Should I wait for further changes before applying?
No. The rules in effect now are faster than what came before, and utility timelines can still shift with future circulars. If your bill and roof situation already make sense for solar, run the numbers through our cost calculator and start the process rather than timing a moving regulatory target.
Frequently asked questions
What did the DOE's April 2026 net metering circular change?
It set firm processing deadlines: distribution utilities now have 10 working days to approve or reject a complete net metering application, LGUs must issue electrical permits within 3 working days, and Certificates of Final Electrical Inspection within 7 working days. It also removed the separate barangay permit requirement.
Why did the DOE issue this circular?
It followed a presidential declaration of a state of national energy emergency, part of a push to speed up rooftop solar adoption and ease pressure on the grid and electricity costs.
Did the net metering capacity cap change?
Not for residential systems — the cap stays at 100kW under RA 9513. Some industry blogs have circulated a claim that non-residential systems can now go up to 1MW, but that isn't confirmed by DOE, ERC, or mainstream reporting, so treat it with caution until DOE publishes clearer guidance.
What happens if my distribution utility misses the 10-day deadline?
A deemed-approved mechanism applies: if a DU or LGU fails to act within its mandated window on a complete application, the application is treated as approved. Keep your submission receipts as proof.
Do I still need a barangay permit for solar panels?
No. Residential rooftop solar permitting now runs entirely through your LGU's Office of the Building Official and your distribution utility, with no separate barangay approval step.
Does this circular affect businesses differently than homeowners?
The faster timelines apply across the board, which mainly benefits homeowners who used to face open-ended waits. Larger commercial and industrial installations still face additional technical review outside standard residential net metering.