ERC OKs FIT adjustments, clearing delayed payments to RE firms
Renewable energy (RE) developers are set to recover long-delayed amounts for power already delivered after the Energy Regulatory Commission (ERC) approved long-pending feed-in tariff (FIT) adjustments.
In a statement, the ERC said it approved the FIT adjustments, allowing FIT-eligible plants to collect the approved amounts over a five-year period starting in 2026.
“The approval marks the first adjustment to the FIT scheme since 2020,” said ERC Chairperson Francis Saturnino Juan.
According to the Commission, the FIT adjustments are included under the system rules promulgated to incentivize the development of the RE sector and attract more clean energy investments.
For biomass FIT entrants from 2014 to 2015, the rate has been adjusted to ₱7.0655 per kilowatt-hour (kWh) in 2021, ₱6.9609/kWh in 2022, ₱7.3298/kWh in 2023, ₱7.9363/kWh in 2024, and ₱8.1259/kWh in 2025.
Run-of-river (ROR) hydro FIT entrants from 2014 to 2015 were adjusted to ₱6.1747/kWh in 2021, which was then lowered to ₱6.1404/kWh in 2022.
By 2023, ROR hydro FIT was adjusted to ₱6.514/kWh, rising to ₱6.9714/kWh in 2024 and ₱7.1626/kWh this year.
Solar technologies earlier saw a slight decline to around ₱10.553/kWh in 2021; however, rates increased to ₱12.0074/kWh by 2025.
Wind projects commissioned in 2014 had their rates adjusted from ₱10.5513/kWh in 2021, which declined to ₱10.2758/kWh in 2022. By 2024, the rate was adjusted to ₱10.2946/kWh and further to ₱10.5178/kWh in 2025.
“It underscores our commitment to uphold and ensure the success of the FIT system as enshrined in the RE Act,” Juan noted.
In October, the ERC allowed the adjusted collection of the FIT-Allowance (FIT-All) at ₱0.2073/kWh. While this rate is still being paid by consumers this month, they will soon see a lower charge of ₱0.2011/kWh effective next year.