DOE orders LGUs to clear net-metering permits fast

The Department of Energy (DOE) has ordered local government units (LGU) to process key net-metering permits within fixed timelines of three to seven working days, a move the agency says will accelerate the nationwide rollout of rooftop solar and other small-scale renewable energy systems.

The directive is contained in a Joint Memorandum Circular signed by the DOE with the Department of the Interior and Local Government (DILG) and the Department of Public Works and Highways (DPWH), which standardizes permitting procedures and enforces uniform turnaround times across all LGUs.

Under the circular, LGUs are required to issue electrical permits within three working days and Certificates of Final Electrical Inspection within seven working days once applicants have submitted complete requirements.

If an LGU fails to act within the prescribed period, the application will be deemed approved, allowing applicants to proceed to the next steps of the net-metering process upon presentation of proof of filing and payment, consistent with existing regulations.

On the distribution utility (DU) side, the DOE said the Energy Regulatory Commission (ERC) issued an advisory on Sept. 22, 2025, directing all grid-connected DUs to standardize and simplify documentary requirements for net-metering applications.

Documentary submissions are now limited to four items: a duly accomplished application form containing the facility information required for a Certificate of Compliance, the LGU-issued Certificate of Final Electrical Inspection, an amended net-metering agreement, and the applicable Certificate of Compliance application fee.

The ERC also removed the requirement for notarization of the amended net-metering agreement and allowed the use of electronic signatures to further reduce processing time.

The DOE also expanded consumer benefits through a Supplemental Policy issued on Oct. 3, 2025, aimed at increasing participation in the Net-Metering Program and improving its economic returns for electricity consumers.

Under the policy, qualified end-users retain ownership of Renewable Energy Certificates from the electricity they consume and may sell or trade these through the Renewable Energy Market, creating an additional revenue stream beyond bill credits.

The supplemental policy also introduces multi-site and aggregate net-metering, allowing qualified end-users to share net-metering credits across multiple electricity accounts within the same DU franchise area.

Qualified end-users are defined as electricity consumers that generate power from eligible on-site renewable energy facilities, such as residential or commercial buildings with photovoltaic systems connected to the distribution network, in accordance with the Implementing Rules and Regulations of Republic Act No. 9513 (Renewable Energy Act of 2008).

“In his 2025 State of the Nation Address, the President called on the government to intensify, promote, and expedite the Net-Metering Program to empower Filipinos to generate clean energy and feed excess power to the grid,” said Energy Secretary Sharon S. Garin.

“These coordinated measures–time-bound LGU processing under the JMC, streamlined DU requirements under ERC directives, and DOE’s Supplemental Policy that expands consumer benefits, remove bottlenecks and make net-metering faster, simpler, and more accessible to households and businesses.”

Established under Republic Act No. 9513, the Net-Metering Program allows electricity consumers to export surplus power from eligible renewable energy systems to the grid and earn credits that offset future electricity consumption, supporting consumer savings, distributed generation, grid resilience, and reduced dependence on imported fuels.

As of December 2025, DOE data showed the Luzon grid recorded 17,141 qualified end-users with a combined rated capacity of about 151 megawatt peak (MWp), accounting for 73.43 percent of total installations nationwide.

The Visayas grid recorded 3,179 qualified end-users with an equivalent total rated capacity of around 44 MWp, representing 21.21 percent of installations.

Meanwhile, the Mindanao grid recorded 904 qualified end-users with a total rated capacity of 11 MWp, or 5.36 percent of the national total.

The joint circular was signed by Garin, DILG Secretary Juanito Victor C. Remulla, and DPWH Secretary Vivencio B. Dizon, underscoring what the DOE described as a whole-of-government push to accelerate renewable energy adoption.

By harmonizing local permitting processes, aligning them with simplified utility requirements, and expanding consumer incentives, the DOE said it expects reduced waiting times, fewer administrative barriers, and faster deployment of net-metering systems across the country.