Your neighbor installs solar panels, and a few months later he's bragging that his Meralco bill dropped to PHP 200. You want that. But before you sign anything with an installer, you need to understand the one program that makes it possible: net metering. Here's exactly how it works in 2026 β and whether it's actually worth it for your home.
- Net metering lets your solar panels sell excess kuryente back to Meralco β your singil sa ilaw drops, sometimes to near zero.
- Meralco credits excess energy at roughly PHP 5.00β6.50/kWh (blended generation rate, 2026 estimates).
- Residential systems up to 100kW qualify; most homes need 3β10kW.
- Application takes 4β12 weeks β start it before your installation is finished.
- Worth it if your monthly Meralco bill is PHP 3,000 or higher.
Ano ang Net Metering? (What It Actually Does)
Net metering is a billing arrangement under the Philippine ERC framework that lets grid-tied solar panel owners "sell" electricity back to their distribution utility. For most homeowners in Metro Manila, Bulacan, Cavite, and Laguna β that utility is Meralco.

The loop is simple. Your solar panels generate electricity during the day. You use what you need. Whatever's left flows to the Meralco grid, and Meralco credits your account at the blended generation rate. At the end of the month, you only pay for the net difference between what you consumed and what you exported. That's it.
All excess solar energy is wasted. You pay full Meralco rates for every kWh you pull from the grid after dark.
Excess daytime generation earns you credits. Your bill reflects only the net energy difference β sometimes PHP 0.
Note: VECO in Cebu and other distribution utilities (DUs) have similar programs under the same ERC rules, but this focuses on Meralco. The process and credit structure are nearly identical across DUs.
Mga Requirements at Paano Mag-Apply
This is where most homeowners get slowed down β not because it's hard, but because the paperwork pile catches them off guard. Here's the exact process:
Processing can take 4β12 weeks. Maraming homeowners ang nag-start ng application bago pa matapos ang installation para makatipid ng oras. You can submit while your system is still being installed β just make sure your documents are already complete.
The system size cap for residential net metering is 100kW β far more than what most homes need. A typical Filipino home with air-conditioning and a ref runs fine on a 3β10kW system. Don't overbuy.
Magkano ang Matatanggap Mo? Earnings Breakdown
Let's get concrete. The credit rate Meralco pays for exported solar energy is the blended generation rate β roughly PHP 5.00β6.50/kWh based on 2026 ERC-approved rates. This is not the same as what you pay per kWh (which includes transmission, distribution, taxes, and fees). That full rate is typically PHP 11β14/kWh in Metro Manila areas.
A 5kW system in Metro Manila can generate roughly 550β650 kWh per month (based on Philippine average peak sun hours of ~4.5β5 hrs/day). At a PHP 5.50/kWh credit rate, that's PHP 3,025β3,575/month in combined savings and credits β assuming you export a meaningful share of that generation.
| System Size | Est. Monthly Generation | Typical Export | Monthly Credit Value |
|---|---|---|---|
| 3kW | 330β390 kWh | 80β120 kWh | PHP 440β720 |
| 5kW | 550β650 kWh | 150β250 kWh | PHP 825β1,625 |
| 7kW | 770β910 kWh | 250β380 kWh | PHP 1,375β2,470 |
| 10kW | 1,100β1,300 kWh | 400β600 kWh | PHP 2,200β3,900 |
Two outcomes are possible. If you're a net energy user (consuming more than you generate), your bill is simply reduced. If you're a net energy exporter, Meralco issues a check or carries the credit forward. Under ERC rules, unused credits don't expire within the billing year.
"Sa 5kW system, pwedeng maging PHP 0 ang Meralco bill mo β or even get a refund check at year-end."
Sulit Ba? Common Mistakes That Kill Your ROI
Honestly, net metering is one of the best ROI tools available to Philippine homeowners right now. But we see people sabotage it in predictable ways.
Choosing a non-accredited installer is the biggest mistake. If your installer isn't on Meralco's accredited list, your interconnection application gets rejected β full stop. Always verify accreditation before signing. Our guide to accredited solar installers in the Philippines is a good place to start your shortlist.
Oversizing your system is the second trap. Meralco caps export credits to your annual consumption level. Anything you generate beyond that is forfeited β not paid out. A well-sized 5kW system almost always beats a bloated 10kW one for ROI.
Not monitoring your bi-directional meter monthly means you might not realize Meralco owes you credits. Check the export reading on your meter every billing cycle and reconcile it with your bill.
Expecting instant approval will stress you out. Plan for 2β3 months from application to live interconnection. Factor this into your project timeline and budget.
Net metering is worth it if your average monthly Meralco bill is PHP 3,000 or higher. At that level, a properly sized solar system with net metering typically pays itself back in 5β7 years β and generates free electricity for 20+ years after that. Note that actual payback periods vary depending on your installer's pricing and system configuration; use our ROI calculator with your specific quotes for a more accurate estimate. Below PHP 3,000/month, your payback period stretches past 8 years and the math gets tighter.
Get a free LakaSolar assessment β we handle the Meralco application paperwork for you, from DNMS portal submission to bi-directional meter installation.
Get Your Free Assessment βFrequently Asked Questions
How long does Meralco net metering approval take in 2026?
Typically 4β12 weeks from complete document submission. Delays usually happen when the electrical permit or as-built plans are incomplete. Working with a Meralco-accredited installer speeds this up significantly β they know exactly what the queue needs.
Magkano ang credit rate ng Meralco para sa exported solar energy?
Meralco credits exported energy at the blended generation rate, approximately PHP 5.00β6.50/kWh in 2026 based on ERC-approved structures. This is lower than what you pay per kWh consumed (which bundles transmission, distribution, and taxes), so self-consuming your solar is always more valuable than exporting it β design your system to maximize daytime self-use first.
Can I apply for net metering if I'm renting or my Meralco account is under someone else's name?
The net metering application must be filed under the Meralco account holder's name. If you're renting, you'll need written authorization from the property owner and the account holder β most landlords agree, since a solar setup increases property value and lowers operating costs for everyone involved.
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