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This study examines the Net Metering Program for a 100 kW solar farm in the Philippines, highlighting its financial benefits, impact on the grid, and potential for expansion. It discusses the limitations imposed by the 100 kWp cap on net metering, which restricts larger solar installations from contributing excess energy to the grid. The findings suggest that policy modifications are necessary to unlock the full potential of solar energy and promote wider adoption among households and businesses.

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0% found this document useful (0 votes)
48 views8 pages

Ee Laws

This study examines the Net Metering Program for a 100 kW solar farm in the Philippines, highlighting its financial benefits, impact on the grid, and potential for expansion. It discusses the limitations imposed by the 100 kWp cap on net metering, which restricts larger solar installations from contributing excess energy to the grid. The findings suggest that policy modifications are necessary to unlock the full potential of solar energy and promote wider adoption among households and businesses.

Uploaded by

clemcuril1234
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Net-Metering of 100kW Solar Farm

Nel Clement Emmanuel C. Yap


Department of Electrical Engineering
Cebu Institute of Technology – University
Cebu City, Philippines
[Link]@[Link]

Abstract—Solar energy is one of the best, abundant, and system, where electricity is generated, transmitted, and
high potential renewable and clean energy. It is rapidly distributed from a power generation company. Instead, it
gaining popularity as a sustainable and cost-effective focuses on a more renewable and sustainable mode of
alternative to traditional power sources. In the Philippines, the generating power.
Net Metering Program was intended to motivate people to
consider solar energy adoption, particularly in a smaller scale.
However, the 100 kWp cap on net-metering may have limited
Through the Renewable Energy Act or shortly known
the potential of larger-scale solar farms, turning away a good
as RE Act of 2008, the Net-Metering came to be the first
chance to deliver excess energy to the grid. This study explores
the country’s net metering for a 100 kW solar farm under reward system that doesn’t involve doesn’t exactly involve
current regulations, clarifying its financial benefits, its impact money. Through the installation of photovoltaic (PV)
on the grid, and potential for expansion. Through taking a panels or simply recognized as Solar Panels, around
look at other country’s net metering policies and extensive 100kW of power is where house owners and commercial
research, this study highlights the importance of policy establishment can now generate some electricity of their
modification in unlocking the full potential of solar energy. own and, if there is, excess power generated from the solar
This eventually leads to reduced dependence on fossil fuels, panel installation will be brought or delivered to the
tapping the potential of solar energy, and improved grid electricity distributor company grid and will be used to
stability through innovations like smart grids systems. The compensate the household’s electricity consumption. With
findings shows that while the recent Increase of the cap to 1 these, the household owners themselves becomes the
MW is a step in the right direction, a phased approach to producer of electricity saving money and not having to
further expansion is recommended as not only homes are worry about rising electricity prices. According to
considering solar farms but businesses as well. Upgrading grid Meralco, “Net-Metering is a program under 2008 RA
infrastructure, simplifying administrative processes, and 9513, the Renewable Energy (RE) Act. It allows customers
increasing financial support is good to encouraging larger
to install an RE facility within their premises up to a
solar farms. With all of these, the country can move towards
capacity of 100kWp. Any excess electricity not consumed
energy-independent future and maximizing the economic
benefits of solar power. in the home or business is exported to a distribution utility
(in this case, Meralco). In return, Meralco compensates
customers through credits in their monthly bill”.

I. INTRODUCTION
It Is also important to note that, according to Meralco,
The Philippines is a country in which the sun will be “100kWp is the ceiling established under the Energy
present all year long. That poses a great opportunity for the Regulatory Commission’s (ERC) Amended 2019 Net-
Filipinos to take advantage of such opportunity of solar Metering Rules. Any RE installation above 100kWp is no
dominance and most certainly, save substantial amount of longer covered by the Net-Metering program. As such, the
money. This has led come owners to consider the adoption RE installation will fall under the Zero Export (ZE) or
of solar farms as a sustainable and cost-effective energy Distributed Energy Resources (DER)”. While RE act sets
source. The good thing is that there are various policies that the ceiling as 100kW currently, ERC regulation has no
supporting solar energy, net metering has emerged as a specific rules that compensate energy exported from
crucial mechanism that allows solar power producers to installations above 100 kW. The reason for the limit may
cancel out their energy costs by feeding excess electricity possibly be because Larger systems over 100 kWp can
back into the grid. have a big effect on the local power grid. They can cause
fluctuations in electricity supply, which may require more
complicated systems to keep the system safe. The goal is
Study shows that the country can take power from the to keep net metering focused on smaller-scale systems,
sun through solar energy and has a power generation which are simpler to manage and less likely to put too
potential of 4.5 to 5.5 kWh per square meter per day. much strain on the grid.
Given that every private household may utilize the
renewable and clean power provided by the sun with solar
panels on the roof of their houses or homes. With this However, to add some depth, Zero Export (ZE) refers
opportunity and advantage, this gives a good way to the to a situation where a distributed energy resource (DER)
introduction of the Net-Metering scheme. This marks the such as a rooftop solar panel, has no excess electricity to
first step in moving away from the traditional power send back to the grid, meaning it only generates enough

XXX-X-XXXX-XXXX-X/XX/$XX.00 ©20XX IEEE


power for its own consumption, nothing more, nothing Being educated and familiar with the key barriers and
less. On the other hand, Distributed Energy Resources or opportunities can help shape better policies, improve
DER are smaller power generation units located near the energy management, and encourage wider adoption of
electricity consumer, like rooftop solar panels, batteries, or renewable energy.
small wind turbines, which can be used to generate power
locally and potentially feed back into the grid depending This study focuses on several key issues that need to be
on usage needs. addressed:
• The cost effectiveness of installing a 100 kWp solar
II. STATEMENT OF PROBLEM system under the current Net- Metering program.
• How exporting excess power impacts the local grid and
By The Philippines as a tropical country, opens to endless the financial returns from energy credits.
opportunities to harness renewable and clean energy and • Regulatory restrictions, particularly how the 100 kWp
to be less reliant on traditional energy from fossil fuels. cap influences potential adopters.
Even with all that untapped potential, the adoption of solar • Concerns about grid stability for larger installations,
energy through photovoltaic (PV) panels or even which fall under Zero Export (ZE) or Distributed Energy
individual home solar farms has been relatively slow. The Resources (DER) instead of Net-Metering.
Philippines being a 3rd world country and maybe the
Filipino mindset are surely factors influencing this delay By exploring these challenges and opportunities, the study
include high initial installation costs, limited awareness of aims to offer practical solutions to encourage and make
renewable energy benefits, and a lack of structured better the solar energy adoption in the Philippines, paving
policies for integration into the national power grid. the way for a more sustainable and resilient energy future.

There's a real chance to help households, families and


III. LITERATURE REVIEW
businesses save on electricity costs and move toward a
more sustainable energy future through solar power. With
electricity bills not coming down anytime soon due to the 3.1 Solar energy and net metering
country's reliance on fossil fuels and failure to implement
nuclear energy, adopting solar energy is a practical and Solar energy is gaining a good amount of popularity
obviously clear solution. One way to make this easier is worldwide as a clean and renewable alternative to fossil
through Net-Metering, a policy that lets users send excess fuels. In the Philippines, where sunlight is abundant, solar
solar power back to the grid to reduce their energy bills. power presents a promising way to reduce reliance on grid
This turns participants into "prosumers" which is both and unsustainable energy sources. A 2021 study by the
producers and consumers of electricity, therefore, Department of Energy (DOE) estimates the country's solar
reducing their dependence on the national grid and potential at 4.5 to 5.5 kWh per square meter per day,
supporting environmental sustainability. making it well-suited for solar panel installations.

The Net-Metering program, established by the Renewable Net metering plays a crucial role in making solar power
Energy Act of 2008, permits the installation of solar more accessible and cost-effective. Established under the
power systems up to only 100 kWp. However, there are Renewable Energy Act of 2008 which is Republic Act No.
still challenges in putting and installing the systems up, 9513, it allows consumers to generate their own electricity
especially for installations that are close to or exceed the and send any excess power back to the grid in exchange
100 kWp limit. Systems larger than 100 kWp aren’t for bill credits. Research suggests that net metering not
included in the Net-Metering program and instead fall only helps lower electricity bills but also improves grid
under Zero Export (ZE) or Distributed Energy Resources stability by decentralizing energy production.
(DER). These rules have created some uncertainty for
businesses or households thinking about investing in solar 3.2 Net metering 100kW limitation
systems larger than 100 kWp.
The Energy Regulatory Commission (ERC) has set a 100
kWp limit for net metering, which means solar energy
The adoption of Net-Metering in the Philippines faces produced that surpasses 100kWp do not qualify for the
several challenges, starting with a general lack of benefit of receiving credits from the distribution company.
awareness about its benefits and the restrictions imposed These set limitations has been debated, as larger solar
by the 100 kWp cap. Many household considering to farms could contribute more power to the grid. According
pursue solar farms are unsure how excess energy is to Meralco (2022), the limitation is meant to prevent large
handled, what financial incentives are available, and solar farm energy producers from overloading the
whether their solar installations could impact the stability distribution grid, which could cause voltage fluctuations
of the local power grid. Without clear guidelines and and require more grid reconstruction and modification.
educational awareness to address these concerns, the Although that while small-scale net metering policies
growth of solar energy is not living up to its potential work well for homes and businesses in general, larger
especially in a country abundant of solar energy. solar installations often translates to facing steeper
Considering this and all of its factors, it is truly vital to regulation . Many countries have adjusted their net
take a deeper look at how the Net-Metering program metering policies to support higher-capacity systems.
affects the country’s energy dynamics, particularly for
solar farms and systems near the 100 kWp threshold.
3.3 Zero Export and Distributed Energy Resources IV. METHODOLOGY
(DER) as Alternatives This case study takes a mixed-methods approach,
combining both qualitative and quantitative research to
For solar installations over 100 kWp, two key factors examine the economic and policy impacts of net metering
come into play which are Zero Export (ZE) and in a 100kW solar farm within the Philippine energy sector.
Distributed Energy Resources (DER). ZE systems are The research methodology is outlined as follows:
designed so that all the solar power generated is used to
where it is installed, with no excess sent back to the grid, 4.1 Research design
avoiding regulatory issues. DER, on the other hand, refers
to smaller energy production units located close to This study uses a descriptive case study approach to find
consumers, which may or may not feed power into the out how net metering affects the feasibility, the cost
grid depending on demand and regulatory rules savings, and the grid integration of solar farms. The key
(International Renewable Energy Agency, 2021). objectives include:
Additionally, DER policies in Southeast Asia found that Evaluate whether a 100kW solar farm is financially viable
flexible energy-sharing devices or system alongside with under the Net-Metering Program.
smart grid technology, could allow larger solar systems to
contribute to energy distribution without causing grid Identify key challenges that comes from set policies, most
problems. Also, the use of battery storage systems to especially and particularly the 100kWp cap set by the
increase self-consumption in ZE setups. Energy Regulatory Commission (ERC).
3.4 How does net metering work Compare net metering with other modes used to regulate
such as Zero Export (ZE) and Distributed Energy
Net metering is a system that allows solar energy users to Resources (DER) to further and clearly show the benefits
offset their electricity costs by giving their excess power and drawbacks and disadvantage.
back into the grid. The following shows how net metering
works: Analyzing the effects on those who decided to install solar
farms , focusing on cutting down cost, opportunity in
 Solar Power Generation – A home or business savings money, return on investment (ROI), and payback
that utilizes solar farms installs solar panels that period (PBP).
generate electricity from sunlight but the power
is primarily used to meet household energy
needs. 4.2 Data Collection Methods
 Excess Energy Export – If the solar panels To provide a well-rounded analysis, this study gathers
produce more electricity than the property data from multiple sources, ensuring to state relevant and
consumes, the excess energy is sent back to the important matter in policy, real-world case studies, and
utility grid. financial assessments. The data collection process
includes:
 Energy Credits – The energy distribution
company tracks the amount of excess electricity
exported and provides bill credits, usually a. Document Review
measured in kilowatt-hours (kWh). These credits
can be used to pay off future electricity This is to gain insights into industry changes and
consumption when solar generation is low. requirements by the regulation. These such documents
includes Government Policies & Regulations which is a
 Net Billing – At the end of a billing period, the detailed analysis of the Renewable Energy Act of 2008
electricity consumed from the grid is subtracted (RA 9513) and the updated Net-Metering Rules (2019)
from the exported energy determines the final which pins out their influence on solar farm operations
bill. If more electricity was sent to the grid than and investment potential. Additionally, Industry Reports
consumed, the customer receives a credit for also play a factor in which publications from agencies
future use. such as the Department of Energy (DOE), the Energy
Regulatory Commission (ERC), and Meralco provide data
 Limitations – In the Philippines, net metering on net metering, the economic benefits, and some policy
applies to solar installations up to 100kWp. policies concerning it.
Otherwise, systems that are larger than this must
use Zero Export (ZE) or Distributed Energy b. Case Study Data Collection
Resources (DER) schemes, which limit or
manage grid contributions. Practical insights are taken from real-world solar farm
operations. Examples of such are as follows:

 Solar Farm Performance- Records from active


100kW solar farms in the Philippines are
reviewed to gather data and analyze revenue energy. By comparing programs, regulations, and grid
outcomes, maintenance expenses, and system composition, the goal is to identify best practices that
efficiency. could help refine and improve the Philippines' Net-
Metering Program for greater adoption and financial
 Net Metering Financials- there are some billing viability.
data and credit statements showed and available
on reliable resources that offer a guide for 4.4 Scope and Limitations
evaluating cost savings, financial returns, and the
overall impact related to money of net metering. This study concentrates on grid-connected 100kW solar
farms in the Philippines, particularly those participating in
the Energy Regulatory Commission's (ERC) Net-Metering
Program. It does not include off-grid systems or solar
c. Comparative Analysis farms with capacities greater than 100kW, as these fall
under separate regulatory frameworks like Zero Export
To further understand this, the study explores net metering and Distributed Energy Resources. The financial aspect in
policies in other regions. A concept call Global this study are taken from industry reports and data from
Benchmarking comes to play in which there is a existing case studies, though it's important to note that
comparison of policies in countries such as Thailand, actual economic results may differ due to various factors
Malaysia, and Vietnam, usually places similar to the and availability.
Philippines to highlight the differences in regulation and
policy.
V. ANALYSIS AND DISCUSSION

d. Economic Assessment
5.1 Financial Viability of a 100 kW Solar Farm
The financial impact of net metering on solar farms is
evaluated by looking at both cost savings and investment a. Installation and Maintenance Costs
potential. By analyzing the lessen electricity bill or its
reduction, the study determines how much homes and Setting up a 100kW solar farm that is connected to the grid
businesses can save through the program. To understand in the Philippines requires an initial investment of
the long-term financial benefits, key concepts like approximately $30,468 (around P1,524,000 as of April
Levelized Cost of Electricity (LCOE), Payback Period 2024) based on the prices of reliable solar panels. This
(PBP), and Internal Rate of Return (IRR) are used, estimate covers important and essential components to
providing a clearer picture of profitability and return on consider, including 168 units of 580W N-type Mono Solar
investment. Panels, a 100kW three-phase on-grid inverter, mounting
structures, wiring, and other necessary accessories.
However, this cost does not include shipping and
4.3 Data Analysis Techniques installation, as these expenses can vary depending on the
travel time of shipping and location and the compensation
Data analysis techniques are crucial in gathering and required by the installer. Once the system is up and
analyzing data. Some are different from the others as the running, maintenance costs remain relatively low,
techniques are for specific purpose, therefore, they all are averaging around P2,500 per service visit on average.
unique in many ways. Such techniques are as follows: Regular upkeep is crucial for ensuring the system operates
efficiently and lasts for years to come.

Thematic Analysis: This involves identifying policy


challenges and economic advantages that are related with b. Saving from energy
net metering by taking a look at existing literature, case
studies, and industry reports. By analyzing patterns, the
study aims to highlight both the opportunities and A 100kW solar installation in Manila can generate
challenges that solar farm developers and policymakers approximately 131,251 kWh of electricity per year. Given
face in implementing net metering effectively. the average electricity rate per kWh is around P11.50 per
kWh on average and depending on the region, this
Sensitivity Analysis: To understand how different factors translates to annual savings of around P1,509,350. These
influence the profitability of a 100kW solar farm, this savings are calculated using a straightforward formula:
study examines variables such as initial capital costs,
electricity tariff rates, solar panel efficiency, and potential
shifts in government policies. By testing various financial Annual Savings = Annual Energy Production (kWh) ×
scenarios, this analysis helps predict how changes in these Cost per kWh
factors could impact return on investment and long-term
sustainability.
Based on this estimate, the system’s initial investment
could be recovered in about a year, but note that this is all
Comparative Policy Review: This study also looks at how
theoretical and there are no external factors. The formula
other Southeast Asian countries, such as Thailand, to determine the payback period is:
Malaysia, and Vietnam, have made their regarding solar
considered to prevent any problems, and distribution
companies may need to upgrade their infrastructure to
Payback Period = Initial Investment / Annual Savings
handle increased energy delivered from solar farms.
Additionally, system owners must comply with updated
regulations and requirements to ensure problem free
However, when factoring in additional costs such as integration with the grid. While this policy shift brings
installation, maintenance, and such, a more realistic attractive benefits, its success will depend on the
payback period is closer to two years. Despite these collaboration between all parties involved
considerations, the financial benefits of solar energy
remain significant, offering long-term savings and a more
sustainable energy source.

5.3 Practical considerations

c. Return on Investment (ROI) a. Grid Stability and Infrastructure


On average, solar panels have a lifespan of approximately Integrating larger solar systems into the existing grid has to
25 years, a 100kW solar system offers substantial long- be considered carefully to ensure stability. One of the main
term financial benefits. Once the initial investment is concern is managing voltage fluctuations, which can occur
recovered, the remaining years translate into pure cost when energy generation becomes too high for the demand
savings, significantly increasing the system’s overall return or when there’s an imbalance in energy input and output.
on investment. Over time, these savings not only gets rid a To address these issues, advanced grid management
lot of costs but also provide a strong financial advantage, technologies may need to be looked at. For a successful
making solar energy a cost-effective and sustainable integration, it’s crucial for solar system owners,
solution. distribution companies, and regulation and policies to
collaborate are this ensures the grid safety.
5.2 Regulatory Landscape and Net Metering Policies
b. Administrative Processes

a. Net Metering Program Overview To get more people on board with the net metering
program, the application and connection process needs to
The Philippines’ net metering program, introduced through be smoother. Cutting down on red tape and making the
the Renewable Energy Act of 2008, allows businesses and steps simpler would make it easier for both businesses and
home owners to install solar energy systems of up to households to set up solar systems. When these hurdles are
100kW capacity. This setup enables users to generate removed, more people will be encouraged to switch to
electricity for their own consumption while sending any renewable energy, helping in moving faster toward a
excess power back to the grid. In return, they receive cleaner, more sustainable future.
credits on their electricity bills, calculated based on the
distribution utility’s blended generation cost. While this
program helps reduce electricity expenses, promotes c. Financial Incentives and Support
renewable energy adoption, and saves money, its 100kW
capacity cap limits the participation of larger solar farms. While the initial investment for a 100 kW solar farm can
Despite this, net metering remains an important step be high especially for most Filipinos, the long-term
toward a more sustainable and practical endeavor. financial benefits and saving potential are also significant.
To make this more accessible, offering financial incentives
like tax credits, grants, or low-interest loans could help
b. Recent Policy Developments with the concern of costs. Such measures would lower the
financial concerns for potential solar farms, making it
In November 2022, the Energy Regulatory Commission easier for a lot of individuals and businesses to benefit
(ERC) approved new regulations increasing the net from solar energy and contribute to the country’s
metering capacity limit from 100kW to 1MW. This policy renewable energy goals.
change is a great step in encouraging larger investments in
renewable energy, as it allows bigger solar installations to
participate in the program. By expanding the standard, the 5.4 Net metering policies comparison
government aims to make solar energy more accessible to
businesses and institutions that consume higher amounts of
electricity.

c. Implications of the Capacity Increase

Raising the net metering limit to 1MW opens up new


opportunities for larger-scale solar projects, potentially
leading to greater energy savings and independence from
the grud. However, integrating these larger systems
presents certain challenges. Grid stability must be carefully
phased approach allows for careful study of grid
impact at each level.

 Action Plan: Conduct further studies on grid


stability in the face of potentially larger energy
harvested from solar farms. Collaborate with
distribution utilities to develop grid management
solutions capable of handling increased
renewable energy inputs.

6.2 Enhancing Grid Stability:

 Recommendation: Invest in smart grid


technologies and overall upgrades to handle
increased energy inputs from solar panels. This
includes advanced monitoring systems, voltage
regulation equipment, and overall more advanced
technology.

 Justification: Grid stability is truly vital when


considering to pursue of larger-scale energy
inputs. Smart grid technologies enable better
management and tracking of energy resources,
better managing potential voltage fluctuations
and ensuring reliable electricity supply.

 Action Plan: Develop a national standard for


smart grid deployment. Encourage utility
This table shows the Net-Metering policies of other companies to upgrade the power grid by offering
countries which includes the Capacity Limit, the financial help and other help. Also, work with
Compensation Rate or way of compensating, Financial research institutions to create and test new ways
Incentives, and Policy Model to manage the grid

6.3 User friendly Processes and Increasing


Awareness:

VI. SOLUTIONS AND RECOMMENDATIONS  Recommendation: Simplify the net metering


application and connection process. Develop
Based on the analysis presented, the following solutions online portals and provide clear step-by-step
and recommendations are proposed to find a solution to guidance for applicants. Through social media,
the existing challenges and maximize the advantages that spread awareness campaigns to educate
comes from solar energy farms in the Philippines, consumers about the benefits of solar energy and
particularly concerning net metering and larger-scale solar net metering.
farms.
 Justification: difficult and time consuming
6.1 Addressing the 100kWp Cap and Promoting administrative procedures discourages people
Larger-Scale Solar: generally. Increased awareness and simplified
processes will encourage people to consider in
 Recommendation: While the recent increase to the net metering program.
1MW is a positive step, it’s still best to
continually increase in the net metering capacity  Action Plan: Develop a user-friendly online
limit, particularly for large businesses such as platform for net metering applications. Conduct
factories and such. A slow approach could be training sessions or online infographics for
considered, starting with minor increases like installers and consumers. Take advantage of
500kW before moving to higher limits, while social media and community organizations to
carefully monitoring grid stability. inform people about solar energy and net
metering.
 Justification: The analysis shows the significant
financial benefits of larger solar installations.
Raising the cap allows businesses to maximize 6.4 Providing Financial Support:
their solar energy potential, leading to greater
cost savings, lessen the use of fossil fuels, and  Recommendation: Expand financial support for
for the betterment of the environment. The solar installations, such as grants, and low-
interest loans.
regulation, and monitoring systems. Without these
 Justification: High entry costs often remains as upgrades, large-scale solar integration could create
the main concern for solar adoption. Financial technical issues that affect reliability and safety. That’s
incentives make solar more accessible and why collaboration between the government, distribution
affordable, especially for households and small companies, and the general potential consumers working
businesses. together to invest in the right solutions will help ensure a
smooth and stable transition to more renewable energy.
 Action Plan: Partner with local banks to create
special loan options for solar installations. Also, Aside from policy and infrastructure challenges, complex
team up with international groups and application processes and financial matters may
development banks to secure funding for discourage many from switching to solar energy. Making
renewable energy projects. the net metering application process more straightforward
and increasing public awareness can encourage more
businesses and households to consider investing in solar
6.5 Addressing Zero Export and DER Challenges: energy. Financial support such as low-interest loans and
grants can also help ease the burden of upfront costs,
 Recommendation: Develop clear regulation and making solar power a more realistic option, especially for
guidelines towards Zero Export and DER smaller users. Additionally, other countries have
systems, particularly for installations exceeding successfully used battery storage to stabilize solar energy
the cap. Provide incentives for the adoption of supply, even when sunlight is inconsistent. By learning
energy storage solutions to maximize self- from these best practices, the Philippines can build a
consumption and minimize grid impact. better, sustainable, and resilient renewable energy system.

 Justification: Clear rules and rewards will give


people confidence and help encourage larger While progress has been made in the Philippines’ net
solar projects that don’t face net metering limits. metering program, there is still significant room for
Adding energy storage is great in handling solar improvement. By gradually increasing the capacity cap,
power fluctuations and keeping the grid stable. modernizing the grid, simplifying processes, and
expanding financial support, the country can unlock the
 Action Plan: Run test projects to explore full potential of solar energy. A more flexible and better
different DER setups and see what works best. approach will not only benefit individual adopters but also
Create clear guidelines for connecting ZE and contribute to the nation’s long-term energy security,
DER systems to the grid. economic growth, and environmental health.

VII. CONCLUSION
The transition to renewable energy is no longer just some
environmental goal trend, it has been becoming a practical
necessity for long-term energy security, economic
stability, and environmental safety. This study examined
the opportunities and limitations of the Philippine net
metering program through the 100 kW solar farm,
identifying the parts where improvements can be applied
to maximize the benefits of solar energy adoption. The
primary challenge is because of the capacity limitation of
the net metering, which has discouraged larger-scale solar
farms from fully participating in the program. Although
the 100 kW was already good for small to average energy
consumers and the cap was recently increased to 1 MW,
this study aims for a gradual, slowly but surely expansion,
starting with 500 kW increases could encourage wider
adoption while ensuring grid stability. Larger installations
not only lead to greater cost savings for businesses but
also reduce the country’s dependence on fossil fuels,
which is critical for both economic and environmental
sustainability.

Another important challenge is maintaining grid stability


as more solar energy is added to the system. Since solar
power generation depends on sunlight, it can fluctuate
throughout the day, making it harder to balance supply
and demand. To handle this, the power grid needs to be
upgraded with smart technologies, better voltage
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