Ee Laws
Ee Laws
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
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:
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.
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.
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.
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