ERC sees accelerated pace in consumers’ shift to net metering for cost savings


At a glance

  • Net metering is a program which allows electricity end-users to generate their own power supply – primarily from solar; and any excess in their output can be injected into the grid – and that will come with cost credit mechanism in their electric bills.


By MYRNA M. VELASCO

End-users shifting to the net metering scheme on gaining electricity service had grown by more than double last year and has been sustaining its escalated pace, according to the Energy Regulatory Commission.

In a presentation to the media, ERC Chairperson Monalisa C. Dimalanta indicated that the capacity chalked up by the net metering users had expanded to 38,157.85 kilowatt-peak (kWp) in 2023 from 16,573.04 kWh in the previous year.

Net metering is a program which allows electricity end-users to generate their own power supply – primarily from solar; and any excess in their output can be injected into the grid – and that will come with a cost credit mechanism in their electric bills.

Within this year’s initial six months, the capacity for net metering users already topped 17,502 kWp; and the industry regulator is expecting further acceleration as more and more consumers have been setting their eyes on joining the government-underpinned net metering program.

For qualified end-users, the ERC chief likewise reported that it had grown to 4,125 customers in 2023 vis-à-vis 1,867 in 2022; while for January to June this year, there had been an addition of 1,764 end-users.

By generating electricity for their own consumption, the qualified end-users are also typically referred to as “prosumers” – because they are both producers of power as well as consumer.

The ERC chief emphasized that one very enticing prospect for consumers to opt for net metering is cost savings – as had been the exceptional experience of those who have already plunged into the program.

Based on data culled from the ERC, the typical blended generation rate that an end-user in the net metering program would be paying for hovers at P5.20 per kilowatt hour (kWh) on the average versus an incumbent power utility’s average retail rate of P9.50 per kWh.

To date, it was noted that bulk of the qualified net metering participants at 10,712 are in the Luzon grid; then 2,170 in the Visayas grid; and 590 in the Mindanao grid.

While the upfront cost for net metering solution remains burdensome to some end-users, those who have taken the shift ahead vouched that the longer cost impact – primarily on saved amounts from electric bills – would still outweigh the initial hurdles of connection.