2012/07/04

The Sun and the Philippine Government Initiative


The Sun and the Philippine Government Renewable Energy Initiative

With a declared state policy of exploration, development and utilization of Renewable Energy resource, Renewable Energy Act of 2008 (RA 9513) was enacted.


The law aims to reduce the over reliance on imported fossil fuels for power generation and to mitigate the harmful emission of carbon dioxide.

There are two important provisions in the law that is most appropriate in the development of residential and small scale (Distributed Generation) set up.

Feed-in-Tariffs (Section 7 of RA 9513).

The Feed-in Tariff system as stipulated aims to accelerate the development of RE resources by giving incentives by institutionalization of special subsidies to developers to recuperate the capital investments.

FIT is vital to RE developers since this will make the deployment of RE technologies attractive. Although RE energy is acceptable to the public there is wide spread skepticism in the way subsidies will be incorporated into end users monthly payment since it will be the end users who will foot the bill for FITs.


Amidst the power price hikes and the immediate manifestation of environmental impact of global warming, there is a clamor for the full implementation of RA 9513, the first step is the implementation of FIT.

Update (Oct 12, 2012) : The ERC approved the FIT rates for Run-of-river hydro, Biomass, Wind and Solar. Approved Solar FIT rate is pegged at Php 9.68 per kW-hr.  Click here for approval by ERC.

Net-metering  (Section 10 of RA 9513)

Net-metering is most appropriate for small scale installation of less than 100 kW rated capacity. Net metering is a scheme or system in which end user with installed RE energy generator such as rooftop or ground mounted Solar Panel modules is credited with energy credits for the excess power generation exported into the grid.


The law mandates distribution utilities (e.g. Meralco) to enter without discrimination into net metering agreement with end users who has installed RE system.

Net metering is supposed to be the incentives for residential and small building owners to attract them into Renewable Energy utilization and generation at a small but wide scale level. With net metering small scale owners will not only be able to save their electricity bill since what they produce shall be used locally but will also earn credits for whatever excess energy they have exported to the grid. With net metering credits the payback period of investment is further accelerated.

Again four years after the law, net metering scheme is yet to be formulated.

Other Laws Pending

House Bill 5405 (HB 5405) or One Million Solar Roof Act of 2011

HB 5405 is a house bill filed by Ted Casino (Bayan Muna), co-sponsored by the Representatives of AnakPawis, Kabataan, Gabriela, and Act. The Bill aims to enact incentives and provide credit facilities for small solar power systems. The Bill should be deemed urgent by the government for implementation in the middle of the unstoppable price hike almost every month for various of reasons but mostly on the limited supply of fossil fuels (Coal, gas, bunker and diesel).


Senate Bill 2751 (SB 2751) or Solar Roof Acts of 2010

Sen. Miriam Defensor Santiago had filed a SB 2751 with the aim of providing competitive grants to LGU’s for rebates, loans and other incentives to individuals or entities for the purchase and installation of SOLAR ENERGY systems. The main goal of the Senate bill is that the Act promotes the installation of solar energy systems to ONE MILLION ROOFTOPS.

There is a sense of urgency each passing day to actively utilize renewable energy in particular SOLAR ENERGY.

SOLAR power systems are the most practical for distributed generation systems because they are compact and the solar energy is abundantly available within our geographical location.

It is an accepted fact that there is a cost for technology. The cost of technology should not hinder the public to accept and use it since a law (RA 9513) has been enacted already to accelerate the payback and mitigate the capital investment needed to start SOLAR power utilization.

As a follow-up, there are pending bills in the Lower House and the Senate that aims to accelerate the financial acceptability of SOLAR POWER systems making it more affordable by giving incentive and credits to ONE MILLION ROOF TOP owners.

Four years of inaction since the signing of the first and most agressive RENEWABLE LAW in South East Asia and yet... 

The Sun is out there... but the Philippine government is somewhere else...

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