SOLAR distributors install solar panels on the roof of a home in Metro Manila. The Department of Energy, the Department of the Interior and Local Government, the Department of Public Works and Highways, and some local government units released a Joint Memorandum Circular to allow Filipino households and businesses faster and easier access to solar power credits under the government’s Net-Metering Program.  Photograph courtesy of GoSolar Philippines
BUSINESS

Gov’t cuts red tape for home solar users

The JMC stated that if an LGU does not act within these periods, the application is considered approved, allowing applicants to move forward in the net-metering process based on proof of filing and payment.

Maria Bernadette Romero

Filipino households and businesses can now expect faster and easier access to solar power credits under the government’s Net-Metering Program, following new rules cutting red tape and expanding consumer benefits.

On Sunday, the Department of Energy (DoE) said the nationwide participation in net-metering is expected to rise after the issuance of a Joint Memorandum Circular (JMC) that sets a fixed processing time for local permits, simplifies requirements for distribution utilities (DUs) under Energy Regulatory Commission (ERC) directives, and widens consumer participation through a DoE Supplemental Policy.

Under the JMC signed by the DoE, the Department of the Interior and Local Government (DILG), the Department of Public Works and Highways (DPWH), and local government units (LGUs) must use standardized application forms and meet strict deadlines.

LGUs are now required to issue electrical permits within three working days and Certificates of Final Electrical Inspection (CFEIs) within seven working days once complete documents are submitted.

The JMC was signed by Energy Secretary Sharon Garin, Interior and Local Government Secretary Juanito Victor Remulla, and Public Works and Highways Secretary Vivencio Dizon.

The JMC stated that if an LGU does not act within these periods, the application is considered approved, allowing applicants to move forward in the net-metering process based on proof of filing and payment.

For distribution utilities, the ERC, through its advisory issued on 22 September 2025, directed all grid-connected DUs to simplify and standardize documentary requirements for net-metering applications.

Applicants now only need to submit a duly accomplished application form with the required facility information, the LGU-issued CFEI, an amended net-metering agreement, and the applicable Certificate of Compliance (COC) application fee.

Notarization of the amended agreement is no longer required, and electronic signatures are allowed.

The DoE also issued a Supplemental Policy on 3 October 2025 to widen consumer benefits and participation.

Under this policy, qualified end-users retain ownership of Renewable Energy Certificates from the electricity they use, which can be sold or traded through the Renewable Energy Market, creating an additional source of income.

Qualified end-users may also share net-metering credits across multiple electricity accounts within the same DU franchise area through multi-site and aggregate net-metering.

“(We were called) to intensify, promote, and expedite the Net-Metering Program to empower Filipinos to generate clean energy and feed excess power to the grid,” Garin said.

“These coordinated measures, time-bound LGU processing under the JMC, streamlined DU requirements under ERC directives, and DoE’s Supplemental Policy that expands consumer benefits, remove bottlenecks and make net-metering faster, simpler, and more accessible to households and businesses,” she added.

Established under the Renewable Energy Act of 2008, the Net-Metering Program allows electricity users to install renewable energy systems, such as solar panels, and send excess power to the grid in exchange for credits that reduce future electricity bills.

As of December 2025, the Luzon grid recorded 17,141 qualified end-users with a total rated capacity of around 151 kilowatt-peak (kWp), accounting for 73.43 percent of the total.

The Visayas grid recorded 3,179 qualified end-users with a total rated capacity of around 44 kWp, or 21.21 percent, while the Mindanao grid recorded 904 qualified end-users with a total rated capacity of 11 kWp, or 5.36 percent.