DOE eases own-use solar rules for Filipino consumers

By Francis Allan L. Angelo

Filipino households, medical facilities and small enterprises can install own-use solar systems through a simpler process with fewer regulatory requirements under a new Department of Energy policy.

The reform seeks to remove costs and administrative delays that can put small solar installations beyond consumers’ reach, allowing more families and essential facilities to reduce electricity bought from the grid while retaining safeguards for public safety and power-system reliability.

Under Department Circular No. DC2026-08-0017, consumers may generate electricity for their own use through Self-Generating Facility Zero-Export Solar Systems, or SGF ZESS, and Micro-Solar Systems, or MSS, without exporting excess power to the distribution grid.

The circular establishes two categories of own-use solar installations.

SGF ZESS covers solar photovoltaic systems connected to a household or facility’s electrical system and equipped with control or isolation mechanisms that prevent excess electricity from entering the distribution grid.

MSS covers smaller, consumer-grade plug-and-play solar systems with a capacity of up to one kilowatt that may be connected directly to a consumer’s electrical system, subject to applicable technical and safety requirements.

MSS users will no longer need to obtain a Building Permit or a Certificate of Compliance from the Energy Regulatory Commission, or ERC, and will instead notify their distribution utility about the installation.

The Certificate of Compliance requirement is also waived for qualifying SGF ZESS installed in households, clinics, hospitals and other medical facilities.

A new Building Permit will not be required for an SGF ZESS when the local government verifies that the structure’s existing permit sufficiently covers the installation.

Distribution utilities are directed to stop requiring unnecessary pre-installation clearances, technical permits and inspection charges as conditions for installing the covered solar systems.

Existing analog meters may remain in use for 12 months from the notification of an MSS installation while distribution utilities undertake the required metering upgrades.

The transition allows qualified consumers to begin using solar power without waiting for an immediate meter replacement.

“For many consumers, the requirements involved in installing even a small solar system can discourage adoption. This policy addresses those barriers,” Energy Secretary Sharon S. Garin said. “By simplifying the process and removing unnecessary costs and requirements, we are opening the door for more households, clinics, and small businesses to generate clean electricity for their own use and reduce their dependence on electricity from the grid.”

The own-use framework differs from net metering because the covered systems are designed primarily for on-site consumption rather than selling excess electricity to the grid.

Any electricity exported by an MSS will not earn a bill credit, offset or payment unless the consumer enrolls separately in the Net-Metering Program and signs an agreement with the distribution utility.

The measure supports President Ferdinand R. Marcos Jr.’s directive in his 2026 State of the Nation Address to expand renewable energy adoption and make rooftop solar and battery storage more affordable and accessible to Filipino households.

The policy also supports the Philippines’ target of raising renewable energy’s share of the power generation mix to 35 percent by 2030 and 50 percent by 2040, from the 25 percent already achieved.

The government’s Philippine Energy Plan identifies greater renewable energy use as a means of improving energy security, supporting economic growth and reducing the country’s exposure to imported fuels.

The DOE developed the streamlined rules following a public consultation held on 15 June 2026 and an evaluation of comments and recommendations submitted by stakeholders.

Technical safeguards remain in force to protect consumers and preserve the reliability of distribution systems.

Distribution utilities must maintain the transformer and service-drop capacity assigned to customers with SGF ZESS or MSS installations, ensuring adequate grid support when solar generation is unavailable or insufficient.

Utilities must also submit quarterly reports to the DOE detailing the number and installed capacity of SGF ZESS and MSS installations to support power-system planning and monitor consumer participation in the clean-energy transition.

The DOE said it would work with the ERC, distribution utilities and local government units to implement the rules consistently nationwide.

The initiative forms part of the government’s Enerhiyang Matatag at Makatao agenda for a secure, affordable, resilient and people-centered energy system for every Filipino.