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How net metering works

By The Solar Company PH · Updated · All solar guides

Short answer

Net metering lets homes and businesses with solar systems up to 100 kW export unused power to the grid. Your distribution utility credits each exported kWh at its blended generation cost and deducts it from your bill. In Zambales and Pangasinan you apply with your own utility or electric cooperative.

Who to apply with for net metering
AreaDistribution utility or cooperative
Olongapo CityOlongapo Electricity Distribution Company (OEDC)
Subic Bay Freeport ZoneSubic EnerZone
Other Zambales townsZAMECO I or ZAMECO II
Dagupan City and nearbyDagupan Electric Corporation (DECORP)
Central PangasinanCENPELCO
Western PangasinanPANELCO I
Eastern PangasinanPANELCO III

What is net metering?

Net metering is a program under the Renewable Energy Act of 2008 (Republic Act 9513). It lets a customer with an on-site renewable energy system, such as rooftop solar, export the power they do not use to the distribution grid and receive a credit for it.

How big can my system be?

Up to 100 kW. That covers nearly every home and most shops, schools, farms and small businesses. Larger systems need other arrangements with the utility.

How are exports credited?

Your utility measures what you import and export with a bidirectional meter. Each exported kWh is credited at the utility’s blended generation cost, not the full retail rate, and the peso credit is deducted from your bill. Utilities publish their generation cost every month.

Because exports are worth less than the power you buy, the best savings come from using your solar power yourself during the day, and exporting only the surplus.

What changed in 2025?

In September 2025 the Energy Regulatory Commission amended the net metering rules to simplify applications, allow credits to be banked and transferred, and make the separate renewable energy certificate meter optional.

How do I apply?

  1. Have your system designed and installed by a qualified installer, with the electrical permit from your LGU.
  2. Get the Certificate of Final Electrical Inspection (CFEI) from your LGU.
  3. File the net metering application with your distribution utility or cooperative.
  4. The utility does a technical evaluation and inspection.
  5. Sign the net metering agreement. The utility installs the bidirectional meter.

We prepare the documents for our customers and coordinate with the utility. Requirements can differ between utilities, so we confirm them with yours.

Common questions

Is net metering available in electric cooperatives?
Yes. Electric cooperatives such as ZAMECO, CENPELCO and PANELCO are distribution utilities and offer net metering to their member-consumers.
Do I need net metering to use solar?
No. Solar works without it; net metering only gives you credit for power you export. A hybrid or off-grid system can store surplus in a battery instead.
Why is my export credit lower than my rate per kWh?
Because exports are credited at the utility’s blended generation cost, which excludes transmission, distribution and other charges in your retail rate.

Sources

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