The ERC net metering rules determine exactly how much credit a solar system generates, how quickly a distribution utility must act on an application, and what happens to excess power that isn’t consumed in the billing month. Getting these mechanics right is the difference between a net metering connection that works as projected and one that underperforms on paper.
ERC Resolution No. 09, Series of 2013, is the foundational legal instrument. Every distribution utility in the Philippines — Meralco, VECO, CLPC, and others — must comply with it. Subsequent DOE circulars have tightened processing timelines and, in April 2026, removed the 100 kWp capacity cap for commercial and industrial consumers.
The BGC Is Not the Retail Rate
The most common misconception in Philippine net metering: consumers expect to be credited at the full retail electricity rate (around PHP 10–12/kWh for Meralco residential consumers) for every unit they export. This is incorrect. The credit rate is the blended generation rate (BGC), which covers only the generation component of the bill — not transmission, distribution, or other charges. The BGC for Meralco customers typically ranges from PHP 5 to PHP 6 per kWh. Self-consumption of solar power avoids the full retail rate; grid export earns only the BGC. System sizing should be optimised toward maximising self-consumption, not exports.
ERC Resolution No. 09-2013: The Core Framework
ERC Resolution No. 09, Series of 2013, implements the net metering mandate from Republic Act 9513. The resolution defines the programme’s rules, the rights and obligations of participating consumers, and the obligations of distribution utilities.
Key provisions of the resolution:
| Provision | Detail |
|---|---|
| Eligible technologies | Solar PV, wind, run-of-river micro-hydro, biomass — all classified as renewable energy |
| Capacity limit (original) | Not exceeding the consumer’s contracted capacity with the DU |
| Capacity limit (2026 update) | Up to 1 MW for commercial/industrial under DOE April 2026 circular — supersedes the older 100 kWp commercial cap |
| Meter type | Bidirectional net meter — DU installs at DU’s cost |
| Export credit rate | Blended Generation Rate (BGC) as published each billing cycle |
| Credit carry-forward | Monthly — unused credits roll to next billing period |
| Annual settlement | Remaining credit paid out to consumer at end of 12-month anniversary cycle |
| Grid connection standard | Philippine Electrical Code (PEC), supplemented by DU’s technical specifications |
| Application processing | 10 working days from complete submission (2026 DOE mandate; original ERC resolution had 30 days) |
The 2026 DOE circular is significant for commercial and industrial installers. The earlier interpretation of ERC Resolution No. 09-2013 imposed an effective 100 kWp cap on many DUs’ practices. The April 2026 circular clarifies that the cap is the consumer’s contracted capacity or 1 MW — whichever is lower — giving large commercial and industrial sites a clear pathway to install systems up to 1 MW and access net metering credits.
Legal Basis: RA 9513
Republic Act 9513, the Renewable Energy Act of 2008, mandates that distribution utilities must enter into net metering agreements with qualified consumers at the consumer’s request. The ERC implements this mandate through Resolution No. 09-2013. A DU that refuses a qualified application is in violation of both the ERC resolution and RA 9513.
Who Qualifies for Net Metering
Eligibility for Philippine net metering covers a broad range of consumer types and system configurations:
| Consumer Type | Eligible? | Notes |
|---|---|---|
| Residential (house, townhouse, condo unit) | Yes | System must not exceed contracted capacity |
| Small commercial (shop, office below 25 kW demand) | Yes | System must not exceed contracted capacity |
| Medium commercial (25–100 kW demand) | Yes | Up to 1 MW under 2026 DOE lift |
| Large commercial / industrial (100+ kW demand) | Yes | Up to 1 MW under 2026 DOE lift |
| Condominium association / homeowners association | Yes, with conditions | DU may require aggregate metering agreement |
| Government facility | Yes | RA 9513 applies to all electricity consumers |
| Consumer with unpaid electricity bills | No | Must be in good standing with DU first |
| Consumer not connected to a DU grid | No | Off-grid consumers cannot apply for net metering |
Eligible renewable energy systems:
- Solar PV (most common)
- Wind energy
- Run-of-river micro-hydro
- Biomass
Battery storage alone does not qualify. The system must include a renewable energy generation source. A battery storage system paired with solar qualifies as part of the solar system.
System sizing rule: The solar system’s AC output capacity must not exceed the consumer’s contracted demand with the DU. If a residential consumer has a 5 kW contracted capacity, the solar system’s inverter output must be rated at or below 5 kW (or a contract capacity upgrade must be requested before applying).
How the Blended Generation Rate (BGC) Works
The BGC is the price at which the DU credits a consumer for every net kWh exported to the grid. It is not fixed — it changes every billing cycle based on the DU’s actual cost of procuring generation.
BGC formula:
BGC = Total Generation Charges (PHP) ÷ Total kWh Consumption (kWh)Where “Total Generation Charges” is the sum of all generation-related line items on the electricity bill (generation charge, fuel charge, purchased power adjustment, etc.) and “Total kWh Consumption” is total units consumed in the billing period.
Worked example — Meralco residential consumer:
| Bill Line Item | Amount |
|---|---|
| Generation charge | PHP 6.20/kWh × 400 kWh = PHP 2,480 |
| Fuel charge (passed through) | PHP 0.08/kWh × 400 kWh = PHP 32 |
| Purchased Power Adjustment | −PHP 0.15/kWh × 400 kWh = −PHP 60 |
| Total generation-related charges | PHP 2,452 |
| Total consumption | 400 kWh |
| BGC this billing period | PHP 2,452 ÷ 400 kWh = PHP 6.13/kWh |
Now apply net metering: the solar system generated 180 kWh during the billing period. The consumer used 400 kWh from the grid and exported 60 kWh back (net generation of 120 kWh used internally, 60 kWh exported).
| Net metering bill item | Calculation | Amount |
|---|---|---|
| Gross consumption | 400 kWh at retail rate | PHP 4,800 (approx) |
| Net metering credit for 60 kWh exported | 60 kWh × PHP 6.13 BGC | −PHP 368 |
| Net bill amount | PHP 4,432 |
The credit of PHP 368 was applied immediately in this billing period because the consumer had consumption against which to offset it. If the consumer had exported more than they consumed, the excess credit rolls to the next billing cycle.
BGC Timing Note
The BGC is calculated from the current billing period’s bill — not the previous month’s. If generation charges rise (as they often do in the dry season when Meralco relies more on fuel-based generation), the BGC rises too. Export credits are worth more in months with high generation costs. This is one reason Philippine solar ROI modelling should use a monthly BGC estimate range rather than a fixed rate.
Good solar design software should allow you to model net metering credits at a variable BGC rate, not a static assumption. SurgePV’s generation and financial tool supports this kind of month-by-month modelling.
DU Obligations Under ERC Rules
Distribution utilities have binding obligations under ERC Resolution No. 09-2013. These are enforceable by the ERC — a consumer whose DU fails to meet them can file a complaint with the ERC.
| DU Obligation | Timing / Standard | Consequence of Non-Compliance |
|---|---|---|
| Accept and process complete application | Within 10 working days (2026 DOE mandate) | Deemed approval if DU fails to act |
| Install bidirectional net meter | At DU’s cost, within 10 working days of approval | Consumer can escalate to ERC |
| Apply BGC credit to monthly bill | Every billing cycle after connection | ERC can order billing correction and penalties |
| Issue annual credit settlement | At 12-month billing anniversary | Consumer can file ERC complaint for unpaid credits |
| Provide written rejection notice | With specific stated grounds | Generic rejection letters not acceptable under ERC rules |
| Not impose extra technical requirements | Beyond ERC-prescribed standards | Consumer can challenge additional requirements at ERC |
| Maintain bidirectional meter accuracy | Per ERC metering standards | Consumer can request meter testing |
The 10-working-day processing deadline is a 2026 DOE mandate. The original ERC resolution allowed up to 30 days. If a DU fails to approve or reject a complete application within 10 working days, the application is deemed approved and the DU must proceed with connection.
“Complete application” is defined as one that includes all required documents. DUs sometimes reject applications as “incomplete” to restart the clock. If a DU claims incompleteness, it must specify exactly which documents are missing.
The DU Cannot Charge You for the Net Meter
Under ERC Resolution No. 09-2013, the distribution utility must install the bidirectional net meter at its own cost. Some DUs have historically tried to pass the meter cost to the consumer. This is not permitted under the ERC rules. If your DU is asking you to pay for the net meter installation, cite ERC Resolution No. 09-2013 and escalate to the ERC if the DU does not comply.
Credit Carry-Forward and Annual Settlement
Net metering credits accumulate when the solar system exports more power than the consumer uses in a given billing period. The ERC rules define how these credits are managed:
Monthly carry-forward: If net exports in a month exceed net consumption in that month, the monetary credit (calculated at BGC) rolls forward to the next billing period. The credit appears as a line item on the next bill, reducing the amount payable.
Accumulation: Credits can accumulate across multiple months. A consumer who goes on extended leave, or a commercial property that reduces operations, can build up substantial accumulated credits over several months.
Annual settlement: At the end of each 12-month anniversary period (measured from the date the net metering agreement takes effect), any remaining accumulated credit is paid out to the consumer in cash by the DU. The payment is calculated at the prevailing BGC.
Practical example:
| Month | Net Export (kWh) | BGC (PHP/kWh) | Credit Generated | Credit Used | Carry-Forward |
|---|---|---|---|---|---|
| May | 80 kWh | 6.10 | PHP 488 | PHP 488 (offset vs bill) | PHP 0 |
| Jun | 150 kWh | 5.90 | PHP 885 | PHP 700 (offset) | PHP 185 |
| Jul | 200 kWh | 5.75 | PHP 1,150 | PHP 800 (offset) | PHP 535 |
| Aug | 120 kWh | 5.85 | PHP 702 | PHP 702 (offset) | PHP 535 (from Jul still) |
At the 12-month anniversary, if PHP 535 in accumulated credits remains unused, the DU pays it out directly to the consumer.
Credits do not expire before the annual settlement. A DU cannot zero out accumulated credits at any point other than the anniversary date settlement.
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Step-by-Step Application Requirements
Verify eligibility and contracted capacity
Check your electricity bill for your contracted capacity (kW). Your solar system’s AC output must not exceed this contracted capacity — or 1 MW for non-residential under the 2026 DOE cap lift. If you want a system larger than your contracted capacity, request a contract capacity upgrade from your DU first before filing the net metering application.
Install a PEC-compliant system with a licensed engineer
Hire a PEC-licensed contractor for the installation. The system must comply with the Philippine Electrical Code — earthing, overcurrent protection, disconnects, labelling, and bidirectional metering provisions. A Registered Master Electrician (RME) or Professional Electrical Engineer (PEE) must sign the Certificate of Compliance (CoC) upon completion. See the full Certificate of Compliance guide for what the CoC must contain.
Obtain the Certificate of Final Electrical Inspection from your LGU
Schedule an inspection with your city or municipal engineering office. Present the completed installation, electrical permit, and CoC. Under the DOE April 2026 mandate, the LGU must issue the CFEI within 3 working days of inspection. Without the CFEI, the DU application cannot proceed. See the full CFEI guide for the inspection process and escalation steps.
Submit the complete net metering application to your DU
File the application package with all required documents: DU application form, signed CoC, as-built single-line diagram, bill of materials, CFEI, proof of ownership or lease, and latest electricity bill. The ERC mandates that DUs must act within 10 working days of receiving a complete application. Keep a dated receipt of submission — it starts the 10-day clock for deemed approval.
Standard documents checklist for DU submission:
| Document | Who Prepares It | Notes |
|---|---|---|
| DU net metering application form | Consumer (download from DU website) | Specific to each DU |
| Certificate of Compliance (CoC) | Licensed RME or PEE | Must reference PEC compliance |
| As-built single-line diagram | Licensed engineer | Signed and stamped |
| Bill of materials | Installer / engineer | Lists panels, inverter, wiring, protection |
| Certificate of Final Electrical Inspection (CFEI) | LGU building/engineering office | Must be original or certified copy |
| Electrical permit | LGU (issued before construction) | Shows permit number |
| Proof of ownership or lease | Consumer | Title, tax declaration, or lessor’s consent |
| Latest electricity bill | Consumer | Shows account number and contracted capacity |
| Photo documentation | Installer | Panels, inverter, meter panel, earthing |
Common ERC Compliance Issues
| Issue | ERC Provision Violated | How to Fix |
|---|---|---|
| DU delays beyond 10 working days | DOE April 2026 circular / ERC Resolution mandate | File ERC complaint; cite deemed approval rule; request written status from DU |
| DU charges consumer for net meter | ERC Resolution No. 09-2013 (meter at DU’s cost) | Reject the charge in writing; cite ERC resolution; escalate to ERC if DU insists |
| BGC calculated incorrectly | ERC Resolution billing provisions | Request itemised BGC calculation from DU; compare against bill line items |
| DU refuses commercial system above old 100 kWp cap | DOE April 2026 circular (1 MW cap) | Cite DOE circular; submit formal written request; escalate to DOE if DU refuses |
| Annual credit not settled at anniversary | ERC Resolution annual settlement provision | File written demand; follow up with ERC complaint if unpaid after 30 days |
| DU adds extra technical requirements not in ERC rules | ERC Resolution (DU cannot impose beyond ERC standards) | Request written basis for requirement; challenge at ERC |
| Credits not appearing on monthly bill | ERC Resolution billing provisions | Request correction from DU’s billing department; escalate to ERC |
| DU rejects application without specific grounds | ERC Resolution (written notice required) | Demand written rejection notice with specific grounds; appeal to ERC |
Use solar software that generates complete application packages — including single-line diagrams and bill of materials formatted to DU requirements — to reduce the risk of “incomplete application” rejections that restart the 10-day clock.
For a full overview of the Philippine solar compliance landscape, see the Philippines solar compliance hub. For specific LGU processing rules under the new 3-day mandate, see the LGU 3-day permit guide.
Frequently Asked Questions
What is the ERC blended generation rate for net metering in the Philippines?
The blended generation rate (BGC) is the export credit rate under Philippine net metering. It equals total generation charges on the bill divided by total kWh consumed. For Meralco customers, the BGC ranges from approximately PHP 5 to PHP 6 per kWh depending on the billing period. The BGC changes monthly with Meralco’s generation cost and is recalculated each billing cycle.
Who is eligible for net metering in the Philippines under ERC rules?
Any residential, commercial, or industrial electricity consumer connected to a distribution utility’s grid and operating a renewable energy system (solar PV, wind, run-of-river hydro, or biomass) with a generating capacity not exceeding their contracted capacity is eligible. Under the 2026 DOE lift, non-residential consumers can install up to 1 MW. The consumer must be in good standing with the DU and the system must comply with the Philippine Electrical Code.
How are net metering credits carried forward under ERC rules?
Unused net metering credits are carried forward as a monetary credit on the next billing cycle. Credits accumulate monthly. Once a year, at the end of the billing anniversary, any remaining credit is paid out to the consumer at the BGC rate. Credits do not expire before the annual settlement.
Can a distribution utility refuse a net metering application?
A DU can reject only if the consumer fails eligibility criteria, submits an incomplete application, or if the proposed system is technically incompatible with the grid. The DU must state specific reasons in writing. Under the DOE April 2026 mandate, the DU has 10 working days to approve or reject — failure to act is deemed approval.
What are the DU obligations under ERC net metering rules?
DUs must: (1) accept and process complete applications within 10 working days; (2) install a bidirectional net meter at the DU’s expense; (3) apply the BGC credit accurately each billing cycle; (4) issue annual credit settlements; (5) not impose extra technical requirements; and (6) provide written notice of any rejection with specific grounds.
Where can I file a complaint if my DU is not following ERC net metering rules?
Complaints can be filed with the ERC’s Consumer Affairs Service. For DOE circular non-compliance, file with the DOE’s regional office. Keep all dated correspondence with your DU as evidence.
Does net metering apply to all distribution utilities or just Meralco?
ERC Resolution No. 09-2013 applies to all franchise-holding distribution utilities in the Philippines — including Meralco, VECO (Visayas Electric Company), CLPC (Cotabato Light and Power Company), and all electric cooperatives. Each DU may have a slightly different application form and process, but the core rules — BGC credit rate, annual settlement, 10-day processing — are uniform under ERC rules.
For related compliance topics, see the DOE 10-day DU approval mandate guide and the full Philippines solar compliance overview on the solar compliance hub.
