Installing rooftop solar in the Philippines is more accessible than ever — panels are cheaper, installation contractors are everywhere, and the government has mandated that distribution utilities accept net metering applications. But the compensation structure surprises most new prosumers: you generate at retail rates and export at a fraction of that. Here’s the honest breakdown.
What the ERC Actually Mandates
Under the Renewable Energy Act of 2008 and its subsequent IRRs, distribution utilities are required to offer net metering to any qualified end-user with a generating system up to 100 kW. The compensation you receive for exported kilowatt-hours is based on the prevailing blended generation rate — not the full retail rate you pay when importing.
In 2025, Meralco’s blended generation rate hovered around ₱5.80–₱6.20 per kWh. Your retail rate (what you pay when consuming) was closer to ₱11.50–₱13.00 per kWh. That gap — nearly 2:1 — is the core math problem facing solo prosumers.
The Time-of-Use Problem
Most solar systems produce peak output between 10am and 2pm. Philippine households typically consume peak power in the early morning and evening. The mismatch means your panels generate exactly when you’re least likely to be home, and export kilowatt-hours that earn you ₱6/kWh while you later import at ₱12/kWh.
The net metering credit offsets your bill — but the value asymmetry remains.
How Aggregation Shifts the Equation
SunShare’s community aggregation model changes this dynamic. Instead of exporting to the grid at a discount, excess solar generation can be credited to other members of your aggregation group — neighbors, nearby businesses, community facilities — at rates negotiated through the Resource Aggregator Program.
This doesn’t eliminate the time-of-use problem, but it replaces the grid’s buy rate with a peer rate that reflects real market value. Early community participants in the Cebu pilot reported effective export compensation 30–40% higher than standalone net metering.
What to Look at Before You Install
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System sizing
Overbuilding leads to chronic export at poor rates; right-sizing for self-consumption first is almost always better economics.
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Battery economics
Payback periods are still long, but the arbitrage case improves every year.
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Aggregation eligibility
If you’re in a covered service territory, joining an aggregation group before installing maximizes your export value from day one.
Net metering is a good start. Aggregation is where the real returns are.
