Net Metering Cost in the Philippines: What You Actually Pay
TL;DR
Net metering itself is a right under RA 9513, not a product you buy, but getting connected has costs: the application and distribution impact study, a bidirectional meter, electrical permits, and a licensed engineer's drawings. Most installers fold these into the quote — the important thing is confirming yours does before you sign.
Net metering itself is a right, not a product. Under RA 9513, the Renewable Energy Act, customers with renewable systems up to 100 kW may connect and export to the grid. What costs money is the process of getting connected: the application, the study, the meter, the permits, and the engineering.
The important thing to establish before you sign anything is which of these your installer’s quote covers. This is the most common source of unexpected cost in a Philippine solar project, and it is entirely avoidable by asking.
What you are actually paying for
| Item | What it is | Normally paid by |
|---|---|---|
| Application processing | The utility’s fee for handling the application | Customer |
| Distribution impact study | Utility assessment that your system can safely connect | Customer |
| Bidirectional meter | Replaces your meter so export is recorded | Customer |
| Electrical permit | LGU permit for the electrical work | Customer, via installer |
| Engineering drawings | Single-line diagram signed by a licensed PEE | Installer’s scope |
| Inspection and commissioning | Utility inspection and meter change-out | Customer |
Fees differ by distribution utility. Meralco, VECO, Davao Light, and the provincial cooperatives each set their own through their own regulatory filings, and they change. Rather than trusting a national figure from a blog — including this one — ask your utility or installer for the current schedule in writing. Our how to apply for net metering guide covers the process end to end.
Why the bidirectional meter is non-negotiable
Your existing meter measures electricity flowing one way, into your home. Net metering requires the utility to know how much you exported as well as how much you imported, and that needs a meter capable of recording both directions.
Until it is installed and commissioned, exporting surplus earns you nothing. Systems occasionally run for weeks after installation while the meter change-out is scheduled, generating power that quietly benefits the grid for free. Ask about the expected timeline, not just the cost.
What the paperwork actually requires
Applications are technical. A typical submission includes:
- A single-line diagram of the system, signed and sealed by a licensed professional electrical engineer
- Equipment specifications for panels and inverter, showing the inverter is a grid-tied or hybrid unit with the required protection
- A site plan showing the service entrance
- Proof of a disconnecting device that isolates your system from the distribution network
- Electrical permit documentation from the LGU
The most common cause of rejection is a mismatch between the drawings and what was actually installed. If the single-line diagram says one breaker rating and the installation has another, it comes back. This is entirely the installer’s responsibility to get right, and it is a fair question to ask about their track record. Our permits and requirements guide lists the full documentation set.
Is it worth it?
For a grid-tied system, almost always. The alternative is not “keep the money” — it is exporting your surplus for nothing.
That said, be clear about what the credit is worth. Exported energy is credited at roughly ₱5-7/kWh, the generation component, while imported energy costs you about ₱14-15/kWh all-in. Net metering is therefore not a one-for-one swap, and a system sized to export heavily is optimising for the wrong rate.
The strongest financial position is a system sized so that most of what it generates is used as it is generated, with net metering catching the remainder. Our net metering explained guide covers the credit mechanics, and net metering vs battery storage compares crediting your surplus against storing it.
Questions to ask before signing
- Does the quoted price include the application fee, impact study, permit, drawings, and meter — or which of those are extra?
- Who files the application, you or the installer?
- What is the realistic timeline from installation to an approved, commissioned bidirectional meter?
- What happens, and who pays, if the application is rejected and needs resubmission?
Get the answers as line items in the quote rather than as reassurances on the phone. An installer who handles net metering routinely will have no trouble putting them in writing — which is itself a useful filter, as covered in how to choose a solar installer.
Frequently asked questions
Is there a fee to apply for net metering?
Utilities charge for processing the application and for the distribution impact study that checks your system can safely connect. Fees vary by distribution utility and are set through their own filings, so ask your utility or installer for the current schedule rather than assuming a national figure.
Who pays for the bidirectional meter?
The customer normally does, either directly to the utility or through the installer's quote. A bidirectional meter records both import and export, which is what makes net metering work — your existing meter cannot do it.
Is net metering included in a solar quote?
Sometimes fully, sometimes partly, sometimes not at all. This is one of the biggest sources of surprise cost in Philippine solar. Ask for it as an explicit line item and get in writing whether the price covers permits, drawings, the study, and the meter.
What is a distribution impact study?
An assessment by your utility of whether your system can connect without causing problems on the local network. It is a standard part of the process for grid-tied systems and is normally billed to the applicant.
Do I need an engineer to sign the drawings?
Yes. Applications require a single-line diagram and technical documents signed by a licensed professional electrical engineer. A competent installer handles this as part of the job, and the cost sits inside their quote.
Is net metering worth the cost and paperwork?
For a grid-tied system, generally yes. Without it, surplus you export earns nothing at all. The credit rate of roughly ₱5-7/kWh is well below retail, but it is considerably better than exporting for free.