Gross Metering vs Net Metering in the Philippines
TL;DR
Net metering, which the Philippines uses under RA 9513, credits only the surplus you export at generation cost, so self-consumption saves you the most. Gross metering, used in some other countries, pays for everything you generate at a set rate. For a Philippine home, net metering plus high daytime use is the more valuable setup.
Net metering and gross metering are two different ways of accounting for the electricity a solar system produces. The Philippines uses net metering under RA 9513, so for a homeowner here this is less a choice than a thing to understand — because how the scheme works decides how you should size and use your system.
The short version: net metering rewards self-consumption; gross metering rewards generation. Those point you toward different behaviour.
How each one works
Net metering looks only at the difference between what you pull from the grid and what you push back. A bidirectional meter records both. If you import 400 kWh in a month and export 100 kWh, you are billed on the net, with the exported surplus credited at generation cost — roughly ₱5-7/kWh in the Philippines.
Gross metering measures your total generation on a separate meter and pays for all of it at a set rate, while you separately buy everything you consume at the retail rate. Generation and consumption are accounted independently.
| Net metering (Philippines) | Gross metering | |
|---|---|---|
| What is measured | Import minus export | Total generation, separately |
| Export/generation credited at | ~₱5-7/kWh (generation cost) | A set policy rate |
| Best strategy | Use power as you generate it | Maximise total generation |
| Used for PH home solar | Yes | No |
Why net metering makes self-consumption king
This is the practical heart of it. Under net metering, every kWh you use as you generate it avoids buying that kWh at the full retail rate of about ₱14-15/kWh. Every kWh you export earns only the ~₱5-7/kWh generation credit.
That gap — more than double — is why the strongest financial position is a system sized to your daytime consumption, not one oversized to export heavily. Our net metering explained guide covers the credit mechanics, and net metering vs battery storage covers the other way of handling surplus.
A household that is home and using power during the day gets far more from a Philippine solar system than one that exports most of its generation. See how much can solar save on your electric bill for both patterns.
Why the Philippines chose net metering
Net metering is simpler to administer for distribution utilities and it caps the utility’s exposure — they credit only surplus, at generation cost, rather than paying a premium for all rooftop output. RA 9513 set the framework, and the 100 kW ceiling comfortably covers any residential and most small-commercial systems. Our net metering cost guide covers what getting connected involves.
Where gross-style schemes appear
Some countries use gross metering or a feed-in tariff to accelerate solar adoption by guaranteeing a payment for all generation. The Philippines has a FIT, but it applies to certain utility-scale renewable projects, not home rooftop solar — see our feed-in tariff guide. For a homeowner, it is not on the menu.
What this means for your build
Because you are on net metering whether you like it or not, the decisions that actually matter are:
- Size to your consumption, not to maximise export — what size solar system for my bill
- Shift load into daylight where you can — the washing machine, the water pump, daytime aircon
- Consider storage only for the right reasons — brownout resilience, not export arbitrage, since a battery earns you the ₱5-7 to ₱14-15 gap, which rarely repays itself
Understand net metering and you have understood the one billing rule that shapes every other choice in a Philippine solar system.
Frequently asked questions
What is the difference between net and gross metering?
Net metering measures only the difference between what you import and export, crediting the surplus at generation cost. Gross metering measures your total generation separately and pays for all of it at a set rate, while you buy all your consumption at the retail rate. They are two different billing arrangements.
Which does the Philippines use?
Net metering, established under RA 9513, the Renewable Energy Act. Systems up to 100 kW can export surplus for a credit on the bill. Gross metering is not the standard residential arrangement here.
Which one saves more money?
Under Philippine net metering, self-consumption saves the most because exports credit at only about ₱5-7/kWh while you avoid buying at about ₱14-15/kWh. A system sized to your daytime use, not to maximise export, is the stronger financial position.
Does gross metering pay more per kWh?
It depends on the gross rate, which is set by policy in the countries that use it. The point of gross metering is a guaranteed payment for all generation. The Philippines does not offer this for residential solar, so it is not a choice you make here.
Is a feed-in tariff the same as gross metering?
They are related. A feed-in tariff pays a set rate for renewable energy fed to the grid, which is closer to the gross model. The Philippines has FIT for certain utility-scale projects, not for home rooftop solar.
Can I choose gross metering for my home solar?
No. Residential rooftop solar in the Philippines operates under net metering. The practical decision for a homeowner is not which metering scheme to pick, but how to size and use the system to get the most from net metering.