Net metering manual issued

MANILA, Philippines — The Department of Energy (DOE) has issued a manual for net metering to help streamline processes in availing the program under the Renewable Energy Act.

DOE published on its website the net metering guidebook to provide guidelines, standards, procedures for all net metering arrangements.

The agency worked with GIZ GmbH and C40 Cities Climate Leadership Group through the Cities Finance Facility (CFF) project.

In a text message, DOE-Renewable Energy Management Bureau (REMB) Mylene Capongcol said the net metering guidebook is a compilation of all rules and guidelines that can be used by net metering practitioners as guidance on the country’s net metering.

“This will also provide avenue for the local government units (LGUs) to understand net metering with the objective of coming up with a streamlined process,” she said.

Energy Secretary Alfonso Cusi said the net metering guidebook aims to promote the net metering program to realized exponential growth in the utilization of renewable energy.

“It encapsulates the multiple benefits that net metering offers and DOE is targeting more electricity consumers will participate in this endeavor because recently, the DOE has expanded the coverage of the net metering program to include off-grid areas,” he said.

Implemented in 2013, the net metering program enables an ordinary electricity consumer to become a “prosumer” by installing a maximum of 100 kilowatts (kW) of RE facility.

The most common RE facility under the program is the rooftop solar PV, generally referred to as a kind of distributed generation or distributed energy resources (DER).

As a prosumer, the ordinary electricity consumer generates electricity for its own consumption, as well as sell any excess generation to the distribution grid.

During the implementation of the 2013 net metering rules, significant concerns on permitting and costs were raised by the stakeholders.

In August 2019, the Energy Regulatory Commission (ERC) adopted changes to the Rules Enabling the Net Metering Program for Renewable Energy.

The amended net metering rules prescribe a maximum 20-day processing timeline for the distribution utilities (DUs) to complete the whole interconnection process from receipt of the letter of interest as long as all necessary permits and licenses are secured and completed.

The distribution impact study (DIS) fee and other related soft costs were also removed in order to encourage participation from end-users.

With the new rules, the ERC has observed an increase in the adoption of net metering, which totals 5,716 qualified end-users of end last year.

From just 200 end-users that availed of the net metering program in 2015, 536 in 2016, 663 in 2017, and 844 in 2018, the ERC counted qualified end-users at 1,168 in 2019. The number of those that availed declined to 590 in 2020 as the COVID-19 pandemic dampened net metering activity before surging to 1,715 in 2021.

Of the total, 81 percent are located in Luzon, 15 percent in Visayas and the balance in Mindanao.