Government speeds up LGUs’ net-metering permits

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February 2, 2026 | 12:00am

MANILA, Philippines — The government has issued rules to streamline local permits for net-metering applications to facilitate the faster rollout of the program aimed at promoting renewable energy (RE) use.

In a statement yesterday, the Department of Energy (DOE) said it expects to see a faster adoption of the net-metering program following the issuance of a Joint Memorandum Circular (JMC) that simplifies documentary requirements and sets timelines for the processing of local permits for net-metering applications.

Through the net metering program, electricity end-users can build their own RE facilities for personal use and sell any excess electricity to the grid.

The program allows end-users to generate savings through credits to offset their power bills.

Under the JMC signed by Energy Secretary Sharon Garin, Interior and Local Government Secretary Juanito Victor Remulla and Public Works and Highways Secretary Vivencio Dizon, local government units (LGUs) are directed to use standardized application forms and comply with prescribed turnaround times for key permits and certifications.

In particular, LGUs should issue electrical permits within three working days and release certificates of final electrical inspection (CFEIs) within seven working days, upon submission of complete requirements.

An application would be treated as deemed approved if the LGU fails to act within the prescribed period, allowing the applicant to move to the next stage of the net-metering process.

The issuance of the JMC follows the rollout of other reforms last year to promote RE use through the net-metering program.

In September last year, the Energy Regulatory Commission (ERC) directed all grid-connected distribution utilities (DUs) to standardize and simplify documentary requirements for net-metering applications.

Last October, the DOE also issued a circular for the supplemental policy for the net-metering program to expand consumer benefits and participation.

Under the supplemental policy, qualified end-users like house or office buildings, retain ownership of RE certificates from the electricity they consume, which may be sold or traded through the RE market.

Qualified end-users may also share net-metering credits across multiple electricity accounts within the same distribution utility franchise area, allowing households and businesses with several facilities to save more on their electricity bills.

In his State of the Nation Address last year, President Marcos called on the government to speed up and streamline the approval process for the net-metering program.

“These coordinated measures – time-bound LGU processing under the JMC, streamlined DU requirements under ERC directives and DOE’s supplemental policy that expands consumer benefits, remove bottlenecks and make net-metering faster, simpler and more accessible to households and businesses,” Garin said.

Through these measures, the DOE expects to see faster deployment of net-metering systems across the country.

As of December last year, the Luzon grid recorded 17,141 qualified end-users with an equivalent total rated capacity of around 151 kWp (73.43 percent).

The Visayas grid recorded 3,179 qualified end-users with an equivalent total rated capacity of around 44 kWp (21.21 percent), while the Mindanao grid had 904 qualified end-users with a total rated capacity of 11 kWp (5.36 percent). Analysts From B1.