Government regulations and updated energy policies are accelerating the adoption of rooftop solar systems in the Philippines, according to DivinaLaw senior partner Jose M. Layug Jr.

In an article published by the Asia Business Law Journal, Layug noted that solar power now plays a more central role in the country’s energy mix compared to when it was nearly absent from the original 2011 National Renewable Energy Program (NREP). The Department of Energy (DOE) now targets 27 gigawatts of additional solar capacity by 2040.

Layug said regulatory changes have made rooftop solar installations more viable. He pointed to the Energy Regulatory Commission’s (ERC) net metering rules issued in 2013 under the Renewable Energy Act of 2008, which initially allowed residential consumers with systems up to 100kW to offset their electricity consumption. In 2019, the program was expanded to include commercial and industrial users, and to allow deployment in off-grid areas.

More recent policy measures include the Distributed Energy Resources (DER) Rules and the Expanded Rooftop Solar Program (ESRP), both implemented in 2023. The ESRP lifts the 100kW net metering cap and allows energy supply to the grid under new models such as supply contingency, lease-to-generate, and restricted peer-to-peer trading.

Layug also cited the DOE’s Green Energy Auction Program 2 (GEAP 2), launched in 2022, which included rooftop solar for the first time. The auction, however, attracted only 9.39 megawatts of bids out of the DOE’s 235MW target for 2024.

Financing programs are also supporting the shift. Layug said institutions such as the Pag-IBIG Fund and the Development Bank of the Philippines have made rooftop solar eligible under home improvement and green energy loan programs. Local governments are integrating rooftop solar into public infrastructure projects, including district hospitals, under the DOE and Department of the Interior and Local Government’s Local Renewable Energy Planning (LREP) initiative.

Layug said the convergence of high electricity prices, falling solar technology costs, and improved regulatory clarity has made rooftop solar more attractive to both households and businesses.