One of the first questions homeowners ask us is some version of: "What happens to the electricity my panels make while I'm at work and the house is empty?" It's a fair question. A rooftop system produces the most around midday, which for many households is also when demand is lowest. The answer in the Philippines is a scheme called net metering — and understanding it is the difference between a system that quietly wastes its best hours and one that earns you credit for them.
What net metering actually is
Net metering is a policy recognised by the Department of Energy (DOE) and enabled under the Renewable Energy Act of 2008 (Republic Act No. 9513). In plain terms, it lets eligible rooftop solar systems up to 100 kW in capacity send their surplus electricity back into the distribution grid — for example, into MERALCO's network — in exchange for peso credits on your monthly bill. You stay connected to the grid the entire time; solar simply becomes a second source that works alongside it.
The 100 kW ceiling is generous. A typical Metro Manila home runs a system in the low single-digit kilowatts, so almost every residence and a great many small businesses sit comfortably under the cap. The scheme was designed for exactly this group: ordinary customers who want to generate their own power and be treated fairly for whatever they don't use themselves.
The bi-directional meter, and being billed on "net"
The mechanism at the heart of it is a bi-directional meter. A normal meter only counts electricity flowing one way — from the grid into your home. A bi-directional meter counts both directions: the energy you import from the grid, and the energy you export back to it when your panels are producing more than the house is consuming.
At the end of the billing period, your distribution utility looks at the difference. That difference is your net consumption — and it's what you actually pay for. A simple way to picture a single day:
- Sunny midday, nobody home. Panels produce 4 units, the house uses 1. The extra 3 units flow to the grid and are recorded as exports.
- Evening, everyone home. Panels are idle, the house pulls 5 units from the grid. Those are imports.
- On your bill. Your exported units become credits that offset what you imported, so you're charged on the net — not the full 5.
If your exports in a period exceed your imports, the surplus credit typically rolls forward to reduce a future bill rather than being paid out as cash. The practical takeaway is simple: net metering turns your roof's midday surplus from wasted energy into something that lowers next month's charge.
How the credit is valued (read this part carefully)
Here is where many explainers oversimplify, so we won't. The credit you receive for exported energy is generally pegged to the utility's generation or blended charge — the cost of the electricity itself — rather than the full retail rate you pay per kilowatt-hour.
Net metering credits are not always a one-for-one swap against your full retail rate. Treat the exact peso value as an assumption to confirm directly with your distribution utility before you size a system around it.
Why does this matter? Your retail tariff bundles in generation, transmission, distribution, system loss, taxes and other line items. The export credit usually reflects only part of that stack. So a unit you export is often worth somewhat less in credit than a unit you would have paid for at retail. That's not a flaw to fear — it's simply the reason the next section is the most important one in this guide.
Why self-consumption still matters most
Because exported energy is typically credited below your retail rate, the most valuable kilowatt-hour your system produces is the one you use the moment you make it. When you self-consume, you avoid the full retail price of that unit — generation, distribution, taxes and all. When you export, you're credited at a lower generation-linked rate. The gap between those two is real money over a system's lifetime.
This reframes how to think about getting the most from solar. The goal isn't to maximise exports; it's to line up your usage with your production as much as your routine allows:
- Run heavy loads — laundry, the dishwasher, water heating, pool or aircon pre-cooling — during daylight hours.
- Charge devices, e-bikes or an EV while the sun is up rather than overnight.
- Size the system to your actual consumption pattern, not just your roof's maximum, so you're not exporting far more than you use.
Net metering is the safety net that captures whatever surplus you can't consume. Self-consumption is the engine that drives the savings. The best systems are designed around both — and that's exactly the kind of bill-anchored analysis our free readiness assessment is built to do.
The application process, step by step
Connecting under net metering is an administrative process handled with your distribution utility, usually with your installer assisting. The shape of it is fairly consistent across utilities:
- Application. You (or your installer on your behalf) apply to the distribution utility to interconnect a net-metered system, submitting system details and the required forms.
- Distribution-impact study. The utility evaluates how your system affects its local network to confirm it can safely accept your exports. Small residential systems usually clear this without issue.
- Approval and agreement. Once cleared, you sign the net-metering agreement that governs how exports are credited.
- Metering. The utility installs or reconfigures your meter to the bi-directional unit that measures both import and export.
- Energisation. After inspection and sign-off, your system is switched on and the credits begin appearing on your bill.
Timelines and exact documents vary by utility and by the size of your system, so a good installer who has done this in your area is worth a great deal here.
An honest note before you commit
Solar rules in the Philippines are not frozen in time. The DOE, the Energy Regulatory Commission and individual distribution utilities periodically update the guidelines, the credit basis and the paperwork around net metering. Anything we've described here is the framework as we understand it — a sound starting point, not a substitute for your utility's current terms.
So before you size a system or sign anything, confirm the live details with your own distribution utility: the present credit rate and how it's calculated, the application requirements, and any fees. Then build your numbers on what they tell you, not on a generic assumption. If you'd like a second set of eyes, we publish more plain-language guides on the Apolaki blog, and our assessment grounds every estimate in your real electricity bill rather than averages.