Commercial solar power in the Philippines

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Commercial solar power in the Philippines refers to grid-connected and behind-the-meter photovoltaic (PV) systems serving commercial, industrial, and institutional consumers. In the Philippines, the segment is shaped by the Renewable Energy Act of 2008 (Republic Act No. 9513), [1] the Energy Regulatory Commission’s (ERC) net metering rules, [2] DOE circulars on program enhancements, [3] and corporate procurement mechanisms such as Retail Competition and Open Access (RCOA) and the Green Energy Option Program (GEOP). [4] According to the DOE, cumulative net-metering capacity reached about 141 MW between 2015 and 2024, with an additional 252 MW registered as “own-use” renewable energy. [5] In 2025, the Institute for Climate and Sustainable Cities (ICSC) launched the SPECTRUM solar mapping tool, which detected roughly 1,846 MW of rooftop PV nationwide (widely reported as “over 1.8 GW”), indicating that many systems are not captured by official registration. [6] [7] The disparity between official and detected capacity has been covered in national media as a regulatory challenge with implications for grid stability and long-term energy planning. [8]

Contents

Scope and definition

Commercial solar encompasses on-site PV systems that offset a customer’s own consumption with or without export to the distribution grid. It excludes utility-scale, merchant solar plants built to sell into the Wholesale Electricity Spot Market (WESM) or under Green Energy Auction Program (GEAP) awards.

Notes on terminology

Policy and regulation

Net-metering (≤100 kW)

The ERC’s Net-Metering Rules allow qualified end-users to interconnect RE systems up to 100 kW and receive bill credits for exported energy valued at the distribution utility’s blended generation cost. [2] The DOE’s 2020 circular broadened coverage and clarified annual net-generator expectations. [3]

2024 update

In August 2024, DOE issued Department Circular DC2024-08-0025, allowing unused Net-Metering Credits to be banked and removing the requirement for a separate REC meter once ERC issues a methodology for computation. [9]

Distributed Energy Resources (100 kW–1 MW)

ERC’s DER Rules, effective 14 December 2022, created an export pathway for systems larger than the 100 kW net-metering cap. Export energy is compensated at 75% of the utility’s blended generation rate for 100–500 kW systems and 60% for >500 kW up to 1 MW, with a 30% export cap on nameplate capacity (as described by the distribution utility). [10] DER projects require a Distribution Impact Study (DIS), a Distribution Asset Study (DAS), and compliance with the Philippine Electrical and Distribution Codes. [11]

Corporate procurement (RCOA and GEOP)

Under RCOA, contestable customers with average monthly peak demand ≥500 kW may contract with a licensed Retail Electricity Supplier (RES). [12] Under GEOP, end-users with demand ≥100 kW can source 100% renewable energy from authorized GEOP suppliers. [4]

Market development

Official DOE data reported cumulative net-metering capacity of about 141 MW between 2015 and 2024, alongside 252 MW of registered “own-use” renewable energy projects. [13] Independent assessments suggest the actual rooftop base is much larger. In July 2025, ICSC’s SPECTRUM mapping detected around 1,846 MW of rooftop PV nationwide, more than seven times the officially registered total. [14] [15] This indicates that only about 21% of rooftop PV capacity is formally registered and regulated, leaving the majority untracked. Analysts warn that this disparity complicates distribution utility planning and may pose risks for grid stability and forecasting. [16] Independent estimates of delivered rooftop generation costs remain in the range of ₱2.50–₱5.30 per kWh, generally lower than fossil-fuel retail electricity rates. [17]

Interconnection and standards

Grid interconnection follows the Net-Metering Interconnection Standards (Annex to ERC’s 2013 rules) and references the Philippine Distribution and Electrical Codes for protection and safety. [2] DOE and utilities also publish technical manuals on testing, commissioning, and interconnection. [18]

Market participants

Several local and international firms operate in the Philippines’ commercial and industrial solar segment. Independent coverage has noted EPCs, multinational developers, and distribution utilities. [19]

Key participants

Corporate renewable suppliers (RCOA / GEOP)

The Department of Energy’s official GEOP supplier list (May 2024) confirms the following authorized suppliers relevant to commercial procurement:

[27]

Challenges and outlook

The Philippines has seen rapid uptake of commercial solar installations, but several challenges remain:

Overall outlook remains positive, with growth expected from rooftop deployments and corporate procurement under RCOA and GEOP, though better alignment between registered and detected capacity is seen as important for stable integration.

See also

References

  1. "Renewable Energy Act of 2008 (Republic Act No. 9513)". Asia Pacific Energy Portal. Retrieved 31 August 2025.
  2. 1 2 3 4 "Guidebook on Net-Metering in the Philippines (2022)" (PDF). Department of Energy (Philippines). Retrieved 31 August 2025.
  3. 1 2 "DOE Department Circular DC 2020-10-0022 (Policies to Enhance the Net-Metering Program)". Department of Energy (Philippines). Retrieved 31 August 2025.
  4. 1 2 3 "Primer on the Green Energy Option Program (GEOP)" (PDF). Department of Energy (Philippines). Retrieved 31 August 2025.
  5. "PH push for renewable energy yields record-breaking installations in 2024". Department of Energy (Philippines). 10 February 2025. Retrieved 31 August 2025.
  6. "Philippines' rooftop solar capacity estimated at over 1.8 GW". PV Magazine. 17 July 2025.
  7. "ICSC finds over 1,800 MW potential solar rooftop capacity in the Philippines". GMA News. 17 July 2025. Retrieved 31 August 2025.
  8. "ICSC launches SPECTRUM solar mapping tool to expose data gaps". Power Philippines. 16 July 2025. Retrieved 31 August 2025.
  9. "DC2024-08-0025: Prescribing Further Policies to Enhance the Net-Metering Program for Renewable Energy Systems" (PDF). Department of Energy (Philippines). 19 August 2024. Retrieved 31 August 2025.
  10. "Distributed Energy Resources – Meralco explainer". Meralco Biz Partners. Retrieved 31 August 2025.
  11. "Manual for Interconnection of Rooftop PV-systems in the Philippines" (PDF). Department of Energy (Philippines). 12 August 2013. Retrieved 31 August 2025.
  12. "ERC eyes lower open access threshold as early as 2027". The Philippine Star. 15 July 2024. Retrieved 31 August 2025.
  13. "PH push for renewable energy yields record-breaking installations in 2024". Department of Energy (Philippines). 10 February 2025. Retrieved 31 August 2025.
  14. "Philippines' rooftop solar capacity estimated at over 1.8 GW". PV Magazine. 17 July 2025.
  15. "ICSC finds over 1,800 MW potential solar rooftop capacity in the Philippines". GMA News. 17 July 2025. Retrieved 31 August 2025.
  16. "ICSC launches SPECTRUM solar mapping tool to expose data gaps". Power Philippines. 16 July 2025. Retrieved 31 August 2025.
  17. "Unlocking Rooftop Solar in the Philippines" (PDF). Institute for Energy Economics and Financial Analysis (IEEFA). August 2018. Retrieved 31 August 2025.
  18. "Guidebook on Net-Metering in the Philippines". Department of Energy (Philippines). Retrieved 31 August 2025.
  19. "Philippines' rooftop solar market attracts growing corporate uptake". PV Tech. 14 September 2023. Retrieved 31 August 2025.
  20. "TotalEnergies rolls out rooftop solar projects in the Philippines". PV Magazine. 15 June 2022.
  21. "AboitizPower expands C&I rooftop solar projects". Philippine Daily Inquirer. 12 March 2023.
  22. "Solaren Renewable Energy Solutions: Setting the Benchmark for Premium Solar Installations". Asia Business Outlook. 2024.
  23. "Solaric powers homes and businesses with rooftop solar". The Manila Times. 20 February 2022.
  24. "Philergy Solar delivers turnkey rooftop systems". Manila Bulletin. 11 January 2023.
  25. "Buscovitz Energy installs rooftop systems in Luzon". Philippine News Agency. 5 January 2023.
  26. "SolarNRG expands to the Philippines". ENF Solar. Retrieved 31 August 2025.
  27. "List of GEOP Suppliers". Department of Energy (Philippines). Retrieved 31 August 2025.
  28. "LGU permits seen as bottleneck in renewable energy rollout". BusinessMirror. 21 July 2023.
  29. "ICSC finds over 1,800 MW potential solar rooftop capacity in the Philippines". GMA News. 17 July 2025. Retrieved 31 August 2025.

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