How Does Net Metering Work in the Philippines?
TL;DR
Net metering lets a home solar system stay grid-connected through a bi-directional meter that tracks power sent to and drawn from the grid, crediting exported excess at the lower generation rate (roughly ₱5-7/kWh) instead of the full retail rate.
Net metering is the mechanism that lets a home with solar panels stay connected to the grid and get credit for any extra power it generates, rather than needing a battery to store every kWh on-site.
The legal basis
Net metering for residential and small commercial installations is set out under RA 9513 (the Renewable Energy Act), which allows systems up to 100 kW to participate. Anything above that falls under different rules meant for larger commercial or industrial installations.
An April 2026 Department of Energy circular didn’t change that cap, but it did put firm deadlines on the process around it: distribution utilities must now act on complete net metering applications within 10 working days, LGUs must issue the electrical permit within 3 working days and the final inspection certificate within 7 working days, and the separate barangay permit step is gone. See our DOE 2026 net metering rules guide for the full rundown of what changed and what didn’t.
How it physically works
Your installer replaces your regular meter with a bi-directional meter that tracks power flowing both ways:
- Power flowing from the grid to your home (normal consumption), and
- Power flowing from your panels back to the grid (excess you generated but didn’t use at that moment).
At the end of your billing cycle, the utility nets these two flows against each other.
The part people get wrong: the credit rate
Exported power is credited on your next bill — but only at the generation cost rate, roughly ₱5-7/kWh, which is well below the full retail rate you actually pay for grid electricity. It’s not a one-for-one swap. 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.
That gap is the whole reason self-consumption matters more than export volume. A kWh you generate and use directly offsets a kWh you’d otherwise buy at full retail price. A kWh you export instead gets credited at the lower generation rate. So the household that runs its aircon, pump, and appliances during the day — soaking up solar output as it’s produced — saves meaningfully more than one that’s away all day and exports most of its generation. This is also why system sizing matters: a system sized to your daytime load usually pays back faster than an oversized one built to export. See our payback period guide for how this plays out over time.
Applying
Net metering applications go through your distribution utility — Meralco for most of Metro Manila and nearby provinces, or your local electric cooperative elsewhere. Your installer typically handles the paperwork and meter swap as part of the installation. If Meralco is your utility, see our Meralco net metering guide for the step-by-step process.
Frequently asked questions
How is net-metered solar power credited on my bill?
Excess power you export to the grid is credited at the generation cost rate, roughly ₱5-7/kWh, which is well below the full retail rate you pay for electricity from the grid.
Do I need a battery to benefit from solar under net metering?
No. Net metering lets you stay connected to the grid and get credit for excess power instead of needing a battery to store every kWh you generate on-site.
What size solar system qualifies for net metering?
Under RA 9513, residential and small commercial systems up to 100 kW can participate in net metering. Larger systems fall under separate rules for commercial and industrial installations.
Why does self-consumption matter more than exporting power?
A kWh you use directly offsets a kWh you'd otherwise buy at full retail price, while an exported kWh is credited at the lower generation rate. Households that use their solar output during the day save more than those that export most of it.
How do I apply for net metering?
Applications go through your distribution utility, Meralco for most of Metro Manila and nearby provinces, or your local electric cooperative elsewhere. Your installer typically handles the paperwork and meter swap.
What equipment changes when I get net metering?
Your installer replaces your regular meter with a bi-directional meter that separately tracks power flowing from the grid to your home and power flowing from your panels back to the grid.