From October 8, 2019, to October 24, 2019, the Department of Energy conducted a series of Public Consultations in Manila, Cebu, and Davao on the proposed Department Circular entitled, “Policies to Enhance the Net Metering Program for Renewable Energy Systems and Other Mechanisms to Ensure Energy Supply Security”.
Watch the video here.
During the Public Consultation on October 8, 2019 at the Bonifacio Global City, the public was reminded of Republic Act 9136, otherwise known as the “Electric Power Industry Reform Act” or “EPIRA”, where it is the declared policy of the State to assure socially and environmentally compatible energy sources and infrastructure; and promote the utilization of indigenous and new and renewable energy resources in power generation in order to reduce dependence on imported energy.
RE Act of 2008
There is also the RA 9513, otherwise known as the “Renewable Energy Act of 2008” or “RE Act”, which provides that it is the declared policy of the State to accelerate the exploration and development of RE resources to achieve self-reliance and strategies to reduce the country’s dependence on fossil fuels to thereby minimize the country’s exposure to price fluctuations in the international markets.
In Section 10 of the RE Act and Section 7 of its Implementing Rules and Regulations, it provides that the Energy Regulatory Commission (ERC), in consultation with the National Renewable Energy Board and the electric industry participants, shall establish Net Metering interconnection standards and pricing methodology and other commercial arrangements necessary to ensure success of the Net Metering program for renewable energy.
What does the DOE adopt?
The DOE encourages and promotes Electricity End-Users’ participation in the Net Metering Program while ensuring the economic and technical viability both from the End Users and the Distribution Utilities’ perspectives. The DOE released its Circular setting out policies and guidelines for the adoption of multiple compensation mechanisms for the net metering program, the voluntary connection of RE systems above 100 kW capacity, and utilization of own-use RE systems as an emergency supply.
Adoption of Compensation Mechanisms
Section 5 of the Circular tackled the adoption of multiple compensation mechanisms for the net metering program, which are subject to the final determination of the ERC. There were two mechanisms identified, one for residential customers and one for non-residential customers.
Classical Net Metering for Residential Customers
In this mechanism, the excess generation from a billing period is valued as energy in kilowatt-hours (kWh) and maintained as credits that offset energy consumption in subsequent billing periods. In this arrangement, the kWh credits are traded as credits and therefore assume a one is to one (1:1) trade.
Current Net Metering Scheme for Non-Residential Customers
In this mechanism, the excess generation from a billing period is converted to a peso equivalent, or monetary credits, to offset the bills in subsequent billing periods for one calendar year. At the end of the year, remaining credits are bought at blended generation rates.
The solar perspective
Solaric President and CEO Mike De Guzman said, “I was invited to the Department of Energy public consultation regarding net metering and solar rooftops for the consumer. During the hearing, a large utility argued that consumers with solar will raise the cost of energy and this is against the interests of the country. They have seemed to have forgotten that this meeting was called for because the Philippines is lacking energy in future energy projects. The Luzon grid was hitting red alert levels, especially during sunny summer months. With the Malayampa gas fields drying out in terms of the contract and proven reserves, this is certainly very disconcerting to our growing economy.”
“From experience, solar on a roof of a house reduces strains on the national grid, provides much-needed energy reserves, and saves the consumer millions of pesos. I am elated that the DOE is listening to foreign experts from USAID, NREL and other solar developers on the realities of what is happening. Without a doubt, there is resistance to change the fossilized ways of the old. The dawn of renewable energy is disrupting the energy monopoly complex. In any case, I am glad to be part of the struggle on the right side – which is the side that values the future of our children,” added De Guzman.
The question is clear: Do YOU value the future of your children?
Turning on the sun
At Solaric, we appeal to Filipino sensibilities of approachability, service and value. Before we give a quotation, we learn how you use energy. We determine the best ways to maximize your return on a hard-earned investment. We present different strategies to ensure that you achieve your solar goals. We want to ensure reduced expenses and increased savings so that you make that one-time wise business and environmental investment. We always do our best to deliver fast, efficient, and thorough customer service. We are in the business of not just selling solar panels – but also enabling solar-powered lifestyles. With this, we want to provide endless satisfaction by delivering Solaric Service Satisfaction, ranging from permanent reduction of electric bills to the ultimate ZERO bill.
Solaric is the leader in rooftop solar
Solaric has established its name across the renewable industry as a proven and reputable rooftop solar leader. Backed by decades of experience, Solaric has installed more than 50% of residential rooftop solar in the Philippines and has delivered significant cost reductions in electricity expenses, as well as milestone contributions to a cleaner, greener, and renewable future. We want every Filipino to enjoy the benefits of clean and renewable power. Welcome to the new generation of solar and turning on the sun.
Do you know anyone who is interested in installing rooftop solar? Help them out by sharing this article with them! Click SHARE.
Contact the solar experts
For more information on solar power systems and solar system installers and experts, click here.
We will gladly explain to you how the system works, or schedule a survey so we can give you options for your new home or existing homes or businesses.
At Solaric, we Turn on the Sun.