Net metering is what turns a rooftop solar system from "self-consumption only" into a system that pays you back for the power you don't use. It's authorized under RA 9513 (the Renewable Energy Act of 2008), which requires distribution utilities like Meralco to interconnect and credit qualified solar owners without discrimination.
This guide covers who qualifies, the exact steps to apply, the documents you'll need, and — the part most guides skip — what it actually costs and how long it takes in 2026.
What Net Metering Actually Does
When your solar panels generate more electricity than your household is using at that moment, the excess flows out to the grid instead of going to waste. A bi-directional meter tracks that outflow separately from what you draw back at night or on cloudy days. At the end of the billing cycle, your distribution utility credits you for the exported kWh at the blended generation rate — roughly the same generation-charge component covered in our Meralco Rate 2026 breakdown — and nets it against what you owe.
Without net metering, that excess power is either wasted (if your inverter curtails it) or you'd need to enroll in Meralco's separate Zero Export Program, which allows solar with no export credit and no capacity cap, for systems that either exceed 100 kW or simply choose not to export.
Who Can Apply
- System size: Up to 100 kW — the ceiling set by the Department of Energy for the net metering program. Larger systems fall under Zero Export instead.
- Location: Your distribution utility (Meralco, or your local electric cooperative) must serve your area, and your connection point needs available hosting capacity on its feeder or transformer. Meralco publishes hosting-capacity tables by transformer size and reassesses on a case-by-case basis.
- Account standing: You'll generally need a clean payment history — no unsettled bills in the prior 12 months. New customers can often qualify by enrolling in auto-debit.
- Grid-interactive inverter: Your system needs an inverter built for grid-tied, anti-islanding operation (standard on any legitimate net-metering installation quote).
Step-by-Step: How to Apply
Meralco's published process — other distribution utilities follow a similar sequence under the same ERC rules.
- Submit your application. File the Net Metering Application Form, your installer's Certification of Final Electrical Inspection (issued by your LGU), the Net Metering Agreement, and proof of payment of the ERC Certificate of Compliance (COC) fee.
- Distribution Impact Study. Your utility runs a free technical review of how your system affects the local grid. If your feeder needs an upgrade to handle the extra capacity, a separate paid Distribution Asset Study follows — this only applies to a minority of applications.
- Inspection and meter installation. The utility inspects your service entrance, then swaps in the bi-directional meter (and, if you opt in, a separate Renewable Energy Certificate meter — optional since the 2025 rule change).
- Energization. Your system is tested and commissioned, and net metering officially starts appearing on your bill from the next cycle.
Documents You'll Need
| Document | Who Provides It | Notes |
|---|---|---|
| Net Metering Application Form | You / your installer | Plus an annex sheet if you're using multiple panel or inverter models |
| Certification of Final Electrical Inspection | Your LGU | Confirms your installation passed local electrical inspection |
| Net Metering Agreement | You & distribution utility | Notarization not required; e-signatures accepted |
| Proof of ERC COC fee payment | You (paid via the utility) | Certificate of Compliance application fee |
| Single-line electrical diagram | Your installer | Standard technical documentation for any grid-tied system |
What Net Metering Costs
| Cost | Amount | Who Pays |
|---|---|---|
| Difference in Meter Cost (DIMC) fee | Capped at ₱3,000 (residential) | You, one-time |
| ERC Certificate of Compliance fee | Set by ERC's published fee schedule | You, one-time, paid via the utility |
| Distribution Impact Study | Free | Utility absorbs it |
| Distribution Asset Study (if needed) | Varies by scope | You, only if your feeder needs upgrading |
| Monthly net metering fee | None | — |
The DIMC fee is capped at ₱3,000 for residential customers under ERC's September 2025 advisory — you pay only the difference between your old meter and the new bi-directional one, not the full replacement cost. The COC fee amount isn't published as a flat rate; confirm the current figure with your utility when you file.
How Long It Takes
As of April 1, 2026, DOE Circular DC2026-01-00012 (issued alongside a joint DOE–DILG–DPWH memorandum during the declared energy emergency) tightened processing deadlines: distribution utilities now have 10 working days to process a net metering application (down from 20), LGU electrical permits are capped at 3 working days, and Certification of Final Electrical Inspection issuance at 7 working days.
That 10-day figure covers the utility's own processing window — not your total project timeline. Installer scheduling, the impact study, and physical meter installation typically add several more weeks on top, so budget more realistically for 4–8 weeks from a complete application to energization, faster if no grid upgrade is needed.
2025–2026 Rule Changes Worth Knowing
- REC meter is now optional. Previously bundled in, the Renewable Energy Certificate meter is no longer mandatory for standard net metering enrollment.
- Credit banking and rollover. Unused export credits can now carry over to future billing periods instead of expiring.
- Credit transfer on sale. If you sell your property, accumulated net metering credits can transfer to the new owner.
- DIMC fee capped at ₱3,000. Previously the full meter cost could be passed to the consumer; now residential customers pay only the difference, capped.
- Hosting capacity published quarterly. Distribution utilities are now required to publish feeder-level hosting capacity, making it easier to check upfront whether your area has room for your system.
These changes come from ERC Resolution No. 15, Series of 2025 ("2025 Amended Rules Enabling the Net-Metering Program"), effective per ERC's September 2025 advisory. As of mid-2026, no change to the 100 kW residential capacity cap itself has been finalized.
Common Questions
What is net metering and how does it work?
Net metering lets a rooftop solar owner export excess electricity to the grid through a bi-directional meter and receive a bill credit for it, instead of that power going to waste. It's authorized under RA 9513 and capped at 100 kW for residential and small commercial systems.
How much does net metering cost in the Philippines?
The main out-of-pocket cost is the Difference in Meter Cost (DIMC) fee, capped at ₱3,000 for residential customers under ERC's 2025 rules. You'll also pay an ERC Certificate of Compliance application fee through your distribution utility. The grid-impact study itself is free unless your feeder needs an upgrade.
How long does net metering approval take?
As of April 2026, distribution utilities must process applications within 10 working days under DOE Circular DC2026-01-00012. LGU permits add a few more days each. Total time to energization, including installer scheduling and meter installation, usually runs 4–8 weeks.
Is net metering the same as a feed-in tariff (FIT)?
No. Net metering is for small rooftop systems up to 100 kW that offset a household's own bill. Feed-in tariff is a separate program that pays a fixed rate to large, utility-scale renewable energy developers — it isn't available to residential solar owners.
What happens to unused net metering credits?
Under ERC's 2025 Amended Net Metering Rules, unused export credits can now be banked and rolled over to future billing periods, and transferred to a new owner if the property is sold — both are new provisions since 2025.