The net metering scheme allows homeowners to sell unused energy generated by solar panels to Meralco in exchange for peso credits.

Part 1 | How Net Metering Works
Part 2 | How Energy is Measured
Part 3 | Savings with Solar Power
Part 4 | Applying with Solterra
Part 5 | Do I Really Need Net Metering?

1 | How Net Metering Works

The net metering scheme allows homes with renewable energy facilities, such as solar panels, to export or sell electricity within its premises. The generated electricity will first be used to power your home during daytime, while extra energy will automatically be sold to the electrical distribution grid—for most Filipinos, Meralco*—in exchange for peso credits. These credits can then be used at the end of each month to pay for and decrease charges on your overall electric bill.**

*Meralco – The Manila Electric Company, also known as Meralco, is the Philippines’ largest distributor of electrical power.
**Energy will still be consumed from Meralco at night since there will be no batteries involved to store energy generated from solar.

Here’s how the system works, in order of priority:

Solar-Powered Home

Your home’s appliances will first and foremost be powered using self-generated solar energy, decreasing your Meralco bill costs.

Excess Solar Means Savings

Any excess solar energy produced will automatically be sold to Meralco in exchange for peso credits, which can be used to pay off your electric bill.

Less Meralco Usage

For instances where solar energy is not available, Meralco will automatically be used as your home’s power source (e.g. nighttime).

Everything flows seamlessly and effortlessly. No switching, no hassle, no maintenance!

Note: Credits earned are not convertible to cash. In cases where the amount of credits earned exceeds your payable bill, the amount will simply be carried over to the next billing period until fully consumed.

2 | How Energy Is Measured

To monitor both consumption and sell-off of energy, you have the option to install either A) a bi-directional meter or B) two (2) one-directional meters, which will be connected to Meralco. In both cases, each meter will be responsible for measuring the following:

Meter 1: Monitoring Consumption, or “Import”

The first meter is in charge of monitoring actual energy consumed from Meralco.

Although the installed solar panels will be your primary energy source, there are instances when there will be insufficient supply. Solar can only be harnessed under significant sunlight, so Meralco will act as support when your panels cannot produce energy (e.g. nighttime, cloudy weather).

Meter 2: Monitoring Excess Power, or “Export”

If your solar panels generate more power than what you consume, the excess energy will automatically be exported and sold to Meralco for peso credits.

The second meter monitors the amount of excess energy sold for credits, helping you track the exact amount you will receive in exchange. These credits will automatically be used to reduce your Meralco charges.

Net Metering Scheme
Energy Consumed from Meralco – Earned Peso Credits = Lower Electricity Bill

3 | Savings with Solar Power

Your home’s solar power system should ideally provide all the energy your household needs during the day, with use of power from Meralco only at night. However, during instances when consumed power in the day is less than the power produced, net metering can help you save even more. By applying your home for net metering, any excess power produced will automatically be converted to credits that should reduce your Meralco bill further at month-end.

How many peso credits do we get?

Though you can sell off your excess solar power, the amount of peso credits you will receive will only be 40% to 45% of the cost per kWh at which you buy from Meralco. Why?

Meralco purchases your excess power at blended generation cost—the average cost charged by the power plants that supply Meralco, or the basic cost of energy that Meralco retails without its additional services and tax charges. 

To illustrate, consider the following:

Meralco Retail Rate: Php 11.30/kWh
Blended Generation Cost: Php 5.00/kWh

*Values may vary. Chosen values are for illustrative purposes only.

If you purchase 30kWh, then you pay a total of Php 339.00 (11.30 multiplied by 30)

If you sell 30kWh, then you receive peso credits worth Php 150.00 (5.00 multiplied by 30)

Though selling excess power can lower your monthly bill, it’s still best to strike a balance between generation and consumption to fully optimize your savings.

How do I zero-out my bill?

How much power does the average Filipino home need to generate and export in order to zero-out their Meralco bill?

Let’s say your household has an average bill of Php 6,000 per month. At the current retail rate of Php 11.30/kWh, you are consuming a total of 531kWh (Php6,000/11.30). Your solar panel system offsets about 45% (or Php 2,711 for 240kWh) of your power requirements, with the remaining 55% (or Php 3,289) used when there is insufficient supply, requiring energy purchase from Meralco. With current blended generation cost at Php 5.22/kWh, you must export 630kWh (Php 3,289/5.22) to zero-out your bill.

With 240kWh for avoided use from Meralco plus 630kWh to export, your system will need to produce a total of 870kWh. An 8 kW system is expected to produce 950 kWh a month, which should be enough to zero-out your P6,000 bill. 

Want to calculate how your home can zero out your bill? Request for a Free Quote today.

Where can I see my credits?

Once you are approved for net metering and begin to sell-off energy to Meralco, a new line item labelled Net Metering Export Energy should appear in your monthly bill.

It will be located on the second page of your bill, right below Energy Bill Amount, and automatically be deducted from the overall charges.

*Values are based on blended generation cost as of November 2018.

4 | Applying with Solterra

Applying for the net metering system is easy and hassle-free with Solterra, as we provide you with all the tools needed for your application.

Completed paperwork, including:

  • Request letter
  • Plant parameters for net metering
  • Application for interconnection
  • ERC certificate of compliance
  • Equipment data sheet and certifications
  • Single-line diagram
  • Location map

Pre-certified and tested equipment for guaranteed approval with Meralco when they visit your home or site.

  • Pre-certified for anti-islanding test
  • Pre-certified for 120-second delay tests

Application guidance and assistance.

You can also learn more about the specific steps for application here: How to Apply

5 | Do I really need Net Metering?

Simply installing a solar panel system should reduce your current electric bill by 40% to 50%*—but the net metering system will allow you to reduce it further, by converting your excess solar energy to peso credits. In some cases, you can even completely zero out your Meralco bill by installing a large enough system for your home.

*Assuming an average usage of 50% (of overall bill) during daytime.

More about Net Metering

How to Apply   |   Case Studies   |   FAQs