FAQs NET METERING SYSTEM

With the rising cost of electricity nowadays, individuals and businesses are entertaining the
prospect of producing their own electricity.
The thought of self-generation of power however leads to a lot questions for those who plan to
put up facilities for this purpose. Hence, Davao Light lists down frequently asked questions
!"#$s% with answers, as follows&
1.) What Is Net Metering?
'et-(etering allows custo(ers of Distribution )tilities D)s% to install an on-site *enewable +nergy
*+% facility not e,ceeding -.. kilowatts kW% in capacity so they can generate electricity for their own
use. "ny electricity generated that is not consu(ed by the custo(er is auto(atically e,ported to the
D)/s distribution syste(.
The D) then gives a peso credit for the e,cess electricity received equivalent to the D)/s blended
generation cost, e,cluding other generation ad0ust(ents. "nd after which, the D) deducts the credits
earned to the custo(er/s electric bill.
2.) What types ! generating !a"i#ities are e#igi$#e !r net %etering?
*+ facilities such as solar, wind, bio(ass or biogas energy syste(s, or such other *+ 1yste(s not
e,ceeding -.. kW in power generating capacity, capable of being installed within the custo(er/s
pre(ises, are eligible to participate in the net-(etering progra(.
&.) Why is there a "apa"ity #i%it ! 1'' (W p#a"e) n RE syste%s *n)er the net+%etering prgra%?
This is because net-(etering, as defined under 1ection 2 gg% of the *+ Law, refers only to a syste(
appropriate for Distributed 3eneration D3%. D3, as defined under 1ection 2 0% of the *+ Law, as s(all
generation entities supplying directly to the distribution grid, any one of which shall not e,ceed one
hundred kilowatts -.. kW% in capacity.
,.) Wh are -*a#i!ie) t parti"ipate in the net+%etering prgra%?
D) custo(ers who are in good credit standing in the pay(ent of their electric bills to their D) are
qualified to participate in the 'et-4etering 5rogra( for *enewable +nergy. These custo(ers are
referred to in the *ules as 6#ualified +nd-)sers7 or #+.
..) /0 E1a"t#y 2es Net Metering Wr(?
8n net (etering, electricity generated is consu(ed first by the custo(ers. 8f there is a deficit, custo(er
gets the difference fro( the distribution utility 3i%prt). 8f there is an e,cess of custo(er generation
vs. require(ent, the difference is sold to the distribution utility 3e1prt).
The value of the energy e,ported fro( the *+ will then be credited to the i(ported bill of the net-
(etering custo(er. Hence, savings will not be only fro( i(porting less energy but also fro( the
reduced bill because of the credit for e,porting power to the distribution line.
4.) What Are The 5ene!its 6! Net Metering?
9y generating electricity for own use, you reduce the a(ount of electricity you buy fro( your local
D). The rate of savings or avoided cost% reali:ed on electricity generated for own use is equivalent to
the D)/s retail rate consisting of charges for generation, trans(ission, syste( loss, distribution,
subsidies, ta,es and other charges.
;ou also earn peso credits on any e,cess electricity e,ported to the D) equivalent to the D)/s blended
generation cost, e,cluding other generation ad0ust(ents. The peso credits earned is then used to
reduce your electric bill<s.
7.) /0 Wi## 6ne 5e Metere) 8n)er Net Metering?
The D) (ay opt to install two uni-directional (eters = one to (eter energy you buy fro( your local
D), and the other to (eter the energy you e,port to the D).
The D) (ay at its option install a single bi-directional (eter that can (eter both i(port and e,port
energy if it finds it to be a (ore econo(ical.
The D) (ay also install a third (eter in pro,i(ity to your *+ facility to (eter its total *+ generation.
The total *+ generation shall earn for the host D) *+ >ertificates which the D) can use to co(ply
with its *enewable 5ortfolio 1tandards *51% obligations.
9.) Wi## :*st%er In"*r A))itina# :harges I! I A;ai# 6! Net+%etering?
;es, D)s shall i(pose a net-(etering charge to all custo(ers who avail of net-(etering equivalent to
their e,isting +*>-approved 5hp<custo(er<(onth supply and (etering rate based on the e,ported
energy as registered in the e,port (eter. This net-(etering charge shall cover the D)/s incre(ental
costs related to syste( enhance(ent and additional (eter reading and other operating costs.
The D)s (ay also apply before +*> a different schedule of net-(etering charges sub0ect to +*>
approval after due notice and hearing. 4eanti(e, the net-(etering charges cited above shall prevail
until a different schedule of net-(etering charges is approved by +*>.
<.) /0 T App#y Fr Net Metering?
#ualified custo(ers (ay visit the Line 1ervices 1ection at the Davao Light 9a0ada office.
1'.) What Is The =ega# 5asis 6! ER: In Appr;ing A Net+%etering >rgra% Fr Rene0a$#e Energy In
The
>hi#ippines?
1ection -. of the *enewable +nergy "ct of ?..@ *epublic "ct 'o. AB-C% provides that sub0ect to
technical considerations and without discri(ination and upon request by distribution end-users, D)s
shall enter into net-(etering agree(ent with qualified end-users who will be installing the *+ syste(.
The +*>, in consultation with the '*+9 and the electric power industry participants, shall establish
net-(etering interconnection standards and pricing (ethodology and other co((ercial
arrange(ents necessary to ensure success of the net-(etering for renewable energy.