ERC approves FIT rate adjustments through 2025

The Energy Regulatory Commission (ERC) has approved long-overdue adjustments to the feed-in tariff (FIT) rates for eligible renewable energy plants covering calendar years 2021 through 2025.

The approved rates will be recovered by the entitled facilities over five years starting in 2026.

This marks the first adjustment to the FIT scheme since 2020 and reflects the commission’s effort to bolster investment certainty in the renewable energy sector.

The FIT mechanism, established under the Renewable Energy (RE) Act of 2008 and implemented through the ERC’s FIT System Rules, is designed to promote renewable energy development by providing fixed tariff rates for electricity generated from qualified facilities.

“The approval marks the first adjustment to the FIT scheme since 2020,” said ERC Chairperson Nino Juan. “It underscores our commitment to uphold and ensure the success of the FIT System as enshrined in the RE Act.”

For biomass energy plants accredited in 2014–2015, the approved FIT rates are PHP 7.0655 per kilowatt-hour in 2021, PHP 6.9609 in 2022, PHP 7.3298 in 2023, PHP 7.9363 in 2024, and PHP 8.1259 in 2025.

For run-of-river hydropower plants that entered the FIT system in 2014–2015, the revised rates are PHP 6.1747 per kilowatt-hour in 2021, PHP 6.1404 in 2022, PHP 6.4514 in 2023, PHP 6.9714 in 2024, and PHP 7.1626 in 2025.

Solar energy projects commissioned in 2014 will receive FIT adjustments of PHP 10.5513 per kilowatt-hour in 2021, PHP 10.2758 in 2022, PHP 10.8507 in 2023, PHP 11.7776 in 2024, and PHP 12.0074 in 2025.

For wind power facilities from the 2014 batch, the approved FIT rates are PHP 9.1940 per kilowatt-hour in 2021, PHP 9.0053 in 2022, PHP 9.4960 in 2023, PHP 10.2946 in 2024, and PHP 10.5178 in 2025.

The ERC said further adjustments for other FIT rounds will be detailed in a separate resolution to be posted on the commission’s website.

The commission emphasized that the updated rates are mandated under the FIT System Rules to support the long-term financial viability of renewable energy investments in the Philippines.

By ensuring fair and predictable returns for developers, the FIT program remains a key policy instrument in advancing energy diversification, sustainability, and investor confidence.

The decision also aligns with the country’s broader energy transition strategy, which targets a 35% share of renewable energy in the national power mix by 2030.