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How Net Metering Works in the Philippines: A Simple Guide for Homeowners and Businesses

  • Writer: Solaready PH
    Solaready PH
  • 24 minutes ago
  • 3 min read

Net metering is a program that lets you connect a grid-tied solar system to your distribution utility so you can use your own solar power first, then send any excess back to the grid and receive bill credits.



If you’ve ever wondered, “What happens when my panels produce more than I’m using?” net metering is the answer.


Meralco’s overview is a good starting reference if you want the official utility explanation.


Net metering in one sentence

You use solar power in real time, and any extra electricity you don’t use is exported to the grid and credited to your bill.


Meralco describes net metering as a program under the Renewable Energy Act (RA 9513), allowing customers to install an RE facility (up to 100 kWp per their explainer) and earn bill credits for excess electricity exported to the grid.


The key equipment: the bi-directional meter

Once you’re enrolled, your distribution utility replaces your regular meter with a bi-directional meter that records two things:

  1. Electricity you pull from the grid (import)

  2. Electricity you send to the grid (export)


Step-by-step: what happens in a normal day


Step 1: Solar powers your home or business first

When the sun is up, your solar panels generate electricity. Your building uses that power immediately to run your lights, aircon, ref, computers, and other loads.


Step 2: If solar is not enough, you draw from the grid

If your usage is higher than what the panels are producing (for example, cloudy weather or heavy appliance use), the balance comes from your utility.


Step 3: If solar is more than you need, the excess goes to the grid

When your panels produce more than you’re using (common mid-morning to mid-afternoon), the extra electricity is exported to the grid.


Step 4: The bi-directional meter records both directions

Your meter keeps track of how much you imported and how much you exported so the bill can reflect your credits.


Simple diagram: solar + net metering flow

Here’s the easiest way to picture it:

[Solar Panels] → power → [Your Home/Business Loads]
                     ↘ excess → [Grid]
[Grid] → backup power → [Your Home/Business Loads]

Bi-directional meter measures:
- Import (Grid → Home/Business)
- Export (Home/Business → Grid)

A real-world example (easy math)


Let’s say in one billing period:

  • You used 600 kWh total

  • Your solar system produced 500 kWh

  • Of that 500 kWh:

    • 350 kWh was used instantly by your home (self-consumption)

    • 150 kWh was excess exported to the grid (net metering export)


How it affects your bill:

  • Grid import is reduced because you self-consumed 350 kWh

  • Exported 150 kWh becomes bill credits (computed by the utility based on the net metering rules and your DU’s methodology)


Your bill typically reflects both the imported energy and the exported energy credit components. (Exact bill presentation and credit computation can vary by distribution utility, which is why it’s helpful to check your DU’s net metering page and FAQs.)


Meralco’s net metering pages and FAQs are the best “source of truth” for Meralco customers:


Homeowners vs businesses: what’s different?


For homeowners

  • The biggest wins usually come from reducing daytime grid usage (aircon, ref, washing machine, work-from-home setup).

  • If your home is empty most of the day, net metering helps because excess production can still earn credits.

For businesses

  • Businesses often have strong daytime consumption, so more solar is used instantly on-site.

  • Net metering is still helpful for weekends, holidays, or seasonal dips when the site uses less power.

Either way, the goal is the same: design a system that matches your real usage pattern.


How to apply (Meralco example)

If you’re within Meralco’s franchise area, Meralco outlines the application flow here. They also list typical requirements and forms in their FAQs (IDs, Plant Parameters Form, and other documents depending on residential vs business).


Helpful external references for readers who want to go deeper

Department of Energy (DOE) net metering program page (official program reference):

Energy Regulatory Commission (ERC) issuances and amendments related to net metering rules (regulatory reference):


If you want to understand net metering in your specific situation, the most practical next step is to review your latest electric bills and your typical daytime usage. A quick consultation helps clarify:


  • What system size fits your consumption

  • How much of your usage you can offset with solar

  • How net metering credits will likely show up based on your pattern and location

  • What documents and steps to expect for your distribution utility


Book a free solar consultation with Solaready here:https://www.solaready.ph

 
 
 

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