28/01/2026
Understanding Net Metering and Why the Government Is Fast-Tracking It
To support the country’s shift to clean and renewable energy, the Department of the Interior and Local Government (DILG) has directed all local government units (LGUs) to fast-track applications for net metering, especially for solar rooftop systems.
This move follows President Ferdinand Marcos Jr.’s push to increase renewable energy use and make it easier for households and businesses to adopt solar power.
What is Net Metering?
Net metering is a system established under Republic Act No. 9513 (Renewable Energy Act of 2008). It allows consumers who generate their own electricity—commonly through solar rooftop panels—to:
Use their solar power for their own needs, and
Export excess electricity to the grid, which is credited against their electricity bill
In simple terms:
If your solar panels produce more power than you use, the extra power is sent to the grid and deducted from your monthly bill.
This helps consumers lower electricity costs, recover their investment in solar systems faster, and contribute to a cleaner energy mix.
Why LGUs Are Being Told to Fast-Track Applications
Many net-metering applicants experience delays due to complex permit processes at the local level. To address this, the DILG—together with the Department of Energy (DOE) and the Department of Public Works and Highways (DPWH)—issued Joint Memorandum Circular (JMC) No. 001, Series of 2026.
The JMC sets clear rules to ensure that net-metering applications are processed faster, simpler, and more consistently across the country.
Key Improvements Under the Joint Memorandum Circular
The JMC requires LGUs to:
Simplify documentary requirements for net-metering installations
Standardize processing timelines for residential, commercial, and industrial buildings
Process electrical permit applications within three (3) working days
Issue Certificates of Final Electrical Inspection (CFEI) within seven (7) working days, in line with the Ease of Doing Business (EODB) Law (RA 11032)
Enforce a “no additional requirements” policy, meaning LGUs cannot ask for documents beyond what is officially required
Apply deemed approval if the LGU fails to act within the prescribed processing period
LGUs are also encouraged to use digital systems and improve internal coordination to further reduce delays.
Oversight and Monitoring
The DILG will monitor the implementation of the JMC in coordination with DOE and DPWH. This includes:
Capacity-building programs for LGUs
Compliance monitoring using the Ease of Doing Business Online Monitoring System
Why This Matters
By streamlining net-metering applications:
More households and businesses can install solar faster
Consumers save more on electricity bills
The country accelerates its transition to renewable energy
Local governments support national energy and climate goals
Bottom line:
Fast-tracking net metering removes red tape, empowers consumers, and makes renewable energy more accessible to everyone.
READ | DILG to LGUs: Fast-track net-metering applications to boost renewal energy adoption
In line with President Ferdinand Marcos Jr.’s directive to accelerate the country’s shift to renewable energy, the Department of the Interior and Local Government (DILG) is calling on all local government units (LGUs) to simplify and streamline the process of applying for net-metering installations.
Net metering, established under Republic Act No. 9513 or the Renewable Energy Act of 2008, allows households and businesses that generate their own electricity, such as through solar panels, to sell their excess power back to the grid. This system helps diversify the country’s energy mix while enabling consumers to reduce their electricity costs and recover investments in renewable energy systems.
To support this initiative, the DILG, together with the Department of Energy (DOE) and the Department of Public Works and Highways (DPWH), recently signed Joint Memorandum Circular (JMC) No. 001, series of 2026. The JMC provides clear guidelines to ensure faster, simpler, and more consistent processing of net-metering applications nationwide.
Under the JMC, LGUs are required to streamline documentary requirements and standardize processing timelines for net-metering installations in existing residential, commercial, and industrial establishments.
Electrical permit applications must be processed within three working days, while Certificates of Final Electrical Inspection (CFEI) must be issued within seven working days, in accordance with Republic Act No. 11032 or the Ease of Doing Business (EODB) Law. The JMC also enforces a “no additional requirements” policy and ensures the application of deemed approval in cases of inaction within prescribed periods.
LGUs are further encouraged to explore the use of digital solutions and strengthen internal data-sharing mechanisms to improve efficiency and reduce processing delays.
The DILG will oversee the implementation of the JMC in coordination with DOE and DPWH, including the conduct of capacity-building initiatives and compliance monitoring through the Ease of Doing Business Online Monitoring System.
