The Philippines is easing renewable energy’s way into the national energy mix, shining a spotlight on solar power which could promise lower electricity bills.
As data from the Energy Regulatory Commission showing expenses have risen by 72% since March 2021, most Filipino households are beginning to question their five-digit Meralco bills. More residents are looking to invest in solar panels as a result and reap the benefits of going green through net metering.
According to the Renewable Energy Act of 2008, net metering is a program that converts the excess power generated by households to credits applied to their monthly electric bill. This excess is a resource Distribution Utilities like Meralco highly sought for, working as an addition to the area’s electrical grid by flowing unused energy through several power lines in the area.
“We produce more power than we consume … and they [Meralco] pay us for Renewable Energy Credits,” Solaric Philippines CEO Mike de Guzman explained how to start sending excess power to the grid in an interview with the Bilyonaryo News Channel.
However, even as an integral part in generating solar power, the process of net metering is still stretched to months or even years of sitting idle and waiting.
Slow engines
The solar dream, for many Filipinos, is an air conditioner that runs 24/7 without a nightmare of a bill creeping up.
In reality, de Guzman says that the transition to solar energy is not as seamless as it should be. Apart from permitting fees to install solar panels, qualifying for the net metering incentive can go up to a full year which could further delay the expected return of investment (ROI) in three to five years.
“Make net metering as obtainable as applying for electricity services. The utility [is] taking so long giving net metering, they’re pushing people to put on batteries,” de Guzman stressed.
When Filipinos using solar energy reach a dead end to earning credits for the excess power they generate, the option of storing it in batteries can quickly escalate from secondary to primary. These batteries can allow households to use electricity continuously, rain or shine.
Consequently, de Guzman says the shift from net metering to batteries would be the Philippines’ “worst-case scenario” at a critical time amid a thinning power supply.
Hit the brakes
As the Malampaya Gas Field in Palawan depletes, which once had enough resources to power ⅓ of Luzon’s electric grid, the country can no longer gamble on one power source alone.
Coal exports are climbing new heights in prices, and Malampaya is set to only last until 2024. Yet, statistics show that solar energy is still supplying a mere 1% of the country’s energy. Alongside a growing population, the demand for a nearly scarce resource is becoming more crucial than ever.
“The whole uncertainty [of] where we’re going to get our power … Our electric grid is starved of power. We will need every megawatt possible, preferably not from coal or oil,” de Guzman sounded the alarm on the excess solar power lost to unproductive systems.
To scale, one solar panel can now generate up to 600 watts compared to older models producing just 240 watts. According to the Solaric CEO, their company alone has already set up thousands of homes with rooftop solar panels in the past year.
The persisting friction in the process of net metering simply translates to hundreds of kilowatts down the drain.
Even with bumps on the road to greener energy, the future for solar power in the Philippines is not so dim with the government’s support on the steady rise.
Accelerate Solar Success
After Solaric’s recent work in an ecozone, de Guzman highlighted the lack of regulations on installing and generating solar energy.
Pushed to manually avoid the generated power from being exported through the help of curtailment devices, he dedicates hours of his time sparking up conversations with departments like the Department of Trade and Industry (DTI).
“They have to balance regulations with affordability. 16-18 pesos for kilowatts per hour is no joke. It is unattainable in most household budgets. It [solar energy] follows the least path of resistance,” the Solaric CEO added.
On the hopeful ride to accessible solar power, net metering should be worth every penny–and most importantly–easy for every Juan.
