Guide · updated 21 Jul 2026 · 8 min read

Net metering in 2026: how selling solar back to the grid actually works

What net metering is

Net metering is a program under the Renewable Energy Act (RA 9513, with rules from the Energy Regulatory Commission — ERC) that lets a home with solar panels push surplus energy into the distribution grid and receive peso credits on the next bill. Your utility (Meralco in Metro Manila, Visayan Electric/VECO in Cebu) installs a bidirectional meter that counts energy in both directions. The program covers systems up to 100 kilowatts — every residential rooftop qualifies on size.

The part every vendor calculator fudges

Exports are not credited at the retail rate. They're credited at the utility's blended generation charge — what the utility itself pays for power, before distribution, transmission, and taxes are stacked on. As of July 2026 that means roughly ₱9.25/kWh at Meralco (its July generation charge) versus a retail rate of ₱14.83. For VECO the most recent figure we could source is ≈₱6.56/kWh — and we flag it: VECO's generation charge moved sharply in mid-2026, so confirm the current credit rate on your latest bill or VECO's monthly advisory before planning around it.

Practical consequence: a kWh you consume while the sun shines saves you the full retail rate; a kWh you export earns 50–62% of that. Run laundry, aircon, and water heating at midday, and size the system so most generation is used at home. Our calculator models this split explicitly — you can edit the self-use percentage and watch the payback change.

What changed in 2025–2026

Two waves of change, both in the homeowner's favor. In 2025 the ERC amended the net-metering rules to streamline applications — online forms, clearer credit banking and transfer when you move, and relaxed certification requirements for meters. Then in April 2026, under the government's energy-emergency measures, the Department of Energy (DOE) directed utilities to approve net-metering applications within about 10 working days — a big cut from the multi-month waits Cebuano applicants historically reported. ⚠ We haven't yet located the specific circular numbers for the 2026 timelines; treat "10 days" as the announced target, not a guarantee, until your utility confirms it in writing.

The process, end to end

1. Electrical permit. Your city hall requires electrical plans signed and sealed by a PEE (Professional Electrical Engineer). A legitimate installer handles this.
2. Installation by licensed pros (an RME — Registered Master Electrician — does the hands-on work).
3. Inspection → CFEI. The local government inspects and issues a Certificate of Final Electrical Inspection (the "yellow card").
4. Net-metering application to your utility: application form, CFEI, plans, and a distribution impact study for larger systems. The utility swaps in a bidirectional meter. Expect a one-time interconnection cost — installers report ₱7,000–15,000 all-in (⚠ varies; get it itemized in your quote).
5. Credits appear on your bill as peso deductions. Unused credits carry forward.

Is net metering even worth the paperwork?

Usually yes, but it's the smaller half of your savings. A well-sized 3 kWp system in Cebu generating ~4,400 kWh/yr with 60% self-use earns roughly ₱39,000/yr from self-use and ₱11,000–16,000/yr from exports (depending on the credit rate). If your utility's queue is long, you can operate a zero-export system and still capture the self-use savings while the application processes — ask your installer about export limiting.

Facts & verification status

Corrections welcome — tell us and we'll log the fix here.