Feed-in Tariff in the Philippines: Does It Apply to Home Solar?
TL;DR
The feed-in tariff in the Philippines pays a guaranteed rate for electricity from qualifying utility-scale renewable projects, and it does not apply to home rooftop solar. Homeowners instead use net metering, which credits exported surplus at generation cost. If someone offers you a home FIT, they are misinformed.
A feed-in tariff (FIT) pays renewable energy producers a fixed, guaranteed rate for electricity fed into the grid. The Philippines has one — but it is for utility-scale projects, not home rooftop solar. For a homeowner, the relevant scheme is net metering.
This distinction matters more than it sounds, because a sales pitch built around a “feed-in tariff” for your roof is either confused or misleading, and it changes how you would wrongly size a system.
What the Philippine FIT actually covers
The FIT system, administered through the Energy Regulatory Commission, was created to make large renewable investments bankable by guaranteeing them a set rate for a fixed period. It applies to qualifying solar farms, wind, biomass, and run-of-river hydro projects — grid-scale generation, not a home with panels on the roof.
There is no residential rooftop feed-in tariff in the Philippines. That is not an oversight you can work around; it is simply a different policy aimed at a different kind of producer.
What homeowners get instead: net metering
Home rooftop solar operates under net metering, established by RA 9513. You export surplus to the grid and receive a credit on your bill at generation cost, roughly ₱5-7/kWh. Systems up to 100 kW qualify, which covers any home and most small businesses. Our net metering explained guide covers the mechanics, and net metering cost covers getting connected.
FIT versus net metering, side by side
| Feed-in tariff | Net metering | |
|---|---|---|
| Who it is for | Utility-scale renewables | Home and small-commercial rooftop |
| Payment | Guaranteed set rate for all generation | Bill credit for exported surplus (~₱5-7/kWh) |
| Best strategy | Maximise generation | Maximise self-consumption |
| Available to homeowners | No | Yes |
The strategy row is the practical one. A FIT rewards producing as much as possible. Net metering rewards using what you produce, because exported surplus credits at well under the ~₱14-15/kWh you pay to import. Full comparison in gross vs net metering.
Why the confusion is a useful warning sign
If an installer or salesperson tells you your rooftop system will earn a feed-in tariff, they have either mixed up the schemes or they are dressing up net metering as something more lucrative. Neither is a good sign.
It is exactly the kind of claim worth testing, alongside the others in our how to avoid solar scams and how to choose a solar installer guides. An installer who is precise about net metering — what it credits, at what rate, and how the application works — is telling you something reassuring about the rest of their work.
What to do with this
Forget the feed-in tariff for your home. Focus on the levers that actually apply:
- Size to your consumption so most generation is self-used — what size solar system for my bill
- Shift load into daylight to capture full retail value
- Understand the net metering credit before assuming solar “sells power back” at a profit — it credits surplus at generation cost, and that is the honest basis for your payback maths
Net metering is the real, available mechanism. Build around it, not around a tariff that was never meant for your roof.
Frequently asked questions
What is a feed-in tariff?
A feed-in tariff (FIT) is a policy that pays renewable energy producers a fixed, guaranteed rate for electricity they feed into the grid, usually for a set number of years. It is designed to make large renewable investments bankable.
Does the Philippines have a feed-in tariff?
Yes, but for utility-scale renewable energy — solar farms, wind, biomass, run-of-river hydro — under the FIT system administered through the Energy Regulatory Commission. It is not a scheme home solar owners can enrol in.
Can I get a feed-in tariff for my rooftop solar?
No. Residential rooftop solar operates under net metering, not FIT. Anyone telling a homeowner they will earn a feed-in tariff on a rooftop system is mistaken, and it is worth treating that as a sign to be careful with the rest of their pitch.
What do homeowners get instead?
Net metering. You export surplus solar to the grid and receive a credit on your bill at generation cost, roughly ₱5-7/kWh. It is not a guaranteed premium payment, but it is the actual, available mechanism for home solar.
Is net metering worse than a feed-in tariff?
For a home, it is simply the applicable scheme. FIT rates are set for large projects with different economics. The way a homeowner maximises value is through self-consumption under net metering, not by chasing a tariff that does not apply.
Why does the difference matter to me?
Because it shapes how you size and use your system. FIT rewards total generation; net metering rewards using power as you produce it. Sizing a home system as if you will be paid for every exported kWh leads to overspending on capacity.