Solar Rooftop Adoption Act

Deliate Pifice of tic TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session AUG -6 P4:22 SENATE RECEIVED G S. No. 1061 Introduced by Senator Jinggoy Ejercito Estrada AN ACT TO FURTHER PROMOTE THE ADOPTION OF ROOFTOP SOLAR TECHNOLOGY AMONG RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AND GOVERNMENT END-USERS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9513, OTHERWISE KNOWN AS THE "RENEWABLE ENERGY ACT OF 2008", AND FOR OTHER PURPOSES EXPLANATORY NOTE Solar photovoltaic (PV) technology presents a significant low-carbon, renewable energy solution that is particularly well-suited for the Asia-Pacific region, where abundant solar radiation provides ample opportunity for harnessing solar energy. There are two primary types of solar PV systems: (1) utility-scale installations, which typically have a capacity of one megawatt and require large, open land areas with minimal shading, and (2) distributed generation systems, which may be ground- mounted or installed on rooftops. These systems generate power during daylight hours, with surplus electricity fed back into the power grid. In the Philippines, rooftop solar PV technology has the potential to significantly contribute to achieving energy security, reducing electricity costs, improving supply reliability, and enhancing power grid independence. Beyond these benefits, rooftop solar aligns with the nation's commitment to a balanced and healthful ecology, ensuring that energy production harmonizes with environmental sustainability.

A 2018 report by the Institute for Energy Economics and Financial Analytics (IEEFA) titled "Unlocking Rooftop Solar in the Philippines" highlighted that the Philippines faces some of the highest electricity rates in the ASEAN region. However, it also pointed out that solar power generation could provide a viable solution to reduce electricity costs to as low as P2.50 per kilowatt-hour (kWh), potentially driving P1.5 trillion (USD 2.8 billion) in new investments by 2030. This economic potential underscores the need for further development and adoption of solar power in the country. The importance of solar energy, particularly rooftop solar, has long been recognized by national leaders. In 2015, National Economic and Development Authority (NEDA) Director-General Ernesto M. Pernia authored a policy report titled "Solar Power's Dawning and Promise for Inclusive Growth," urging the government to proactively support the development of solar energy. Pernia emphasized the growing cost-effectiveness of solar energy and the need for government action to accelerate its deployment across various sectors. Several key reasons support the case for rooftop solar adoption: 1. Cost-Effectiveness: Electricity generated from rooftop solar panels is becoming increasingly affordable. In 2014, the Department of Energy (DOE) reported that coal-generated electricity costs around P12.00 per kWh, including transmission and distribution charges, while electricity from rooftop solar panels is priced at just P9.00 per kWh. 2. Demand Reduction: Rooftop solar systems can significantly reduce peak electricity demand. A 10% reduction in peak demand, as estimated by the United States Agency for International Development (USAID), can lower spot prices by 20%. Solar power is particularly effective during peak hours, typically between 12:00 PM and 2:00 PM, when sunlight is strongest and electricity demand is highest. 3. Convenience of Installation: Solar PV systems can be easily installed with minimal disruption, typically requiring just a few hours for off-the-shelf systems and a few days for larger systems. This ease of installation makes

rooftop solar an attractive option compared to other renewable energy technologies. 4. Land Efficiency: Unlike large-scale power plants, rooftop solar systems do not require additional land use or conversions. They leverage existing, often underutilized, rooftop spaces, reducing the need for land acquisition or environmental impact. The Philippines has already implemented several policy mechanisms to support rooftop solar growth. The Renewable Energy Act of 2008 (Republic Act No. 9513) introduced net metering, allowing consumers to sell surplus electricity back to the grid. MERALCO's Peak/Off-Peak (POP) Program, launched in 2014, offers different electricity rates based on the time of day, providing financial incentives for rooftop solar adoption. Additionally, the PAG-IBIG Fund introduced a solar panel acquisition loan program in 2015 to further encourage solar adoption among Filipinos. This measure seeks to address existing gaps in the emerging rooftop solar industry and build upon the country's growing renewable energy infrastructure by implementing the following reforms: 1. Removal of the 100-kW Cap: Enabling larger electricity consumers, such as commercial establishments and industrial buildings, to participate in the net metering program under Republic Act No. 9513. 2. Uniform Pricing for Import and Export of Electricity: Ensuring that the same reference price applies to both electricity imported from and exported to the grid by end-users. 3. Standardization of Permits and Licenses: Mandating the Department of Energy (DOE), Energy Regulatory Commission (ERC), National Renewable Energy Board (NREB), and the Department of the Interior and Local Government (DILG) to streamline and standardize the permits and licenses required for rooftop solar installations. 4. Institutionalization of the PAG-IBIG Rooftop Solar Loan Program: Expanding financial support for solar panel acquisition through the institutionalization of the PAG-IBIG Fund's loan program.

5. Mandatory Installation of Solar Panels on Government Buildings: Requiring the installation of rooftop solar systems on government buildings, with a 5% increase in installations every five years, to lead by example in promoting renewable energy adoption. In conclusion, the adoption of rooftop solar technology is essential for addressing the Philippines' energy challenges and promoting sustainable, low-cost, and environmentally responsible energy solutions. The approval of this measure will further empower Filipino consumers and businesses, ensure greater energy independence, and contribute to the country's commitment to combating climate change. Originally authored and filed by Senator Grace Poe during the 19th Congress, this measure underscores the government's commitment to utilizing rooftop solar technology as a key strategy for achieving energy security, reducing electricity costs, and promoting environmental sustainability, all of which contribute to inclusive national development and social justice. Thus, immediate approval of this measure is earnestly sought. SINCE BERET ESTRADA

Lip TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES ) First Regular Session 25 AUG -6 P 4:23 SENATE RECEWED BI S. No. 1061 Introduced by Senator Jinggoy Ejercito Estrada AN ACT TO FURTHER PROMOTE THE ADOPTION OF ROOFTOP SOLAR TECHNOLOGY AMONG RESIDENTIAL, COMMERCIAL, INDUSTRIAL, AND GOVERNMENT END-USERS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9513, OTHERWISE KNOWN AS THE "RENEWABLE ENERGY ACT OF 2008", AND FOR OTHER PURPOSES Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Solar Rooftop Adoption

2 Act".

Sec. 2. Declaration of Policies. - The State recognizes energy security and

4 electricity affordability as necessary components of inclusive, sustained and broad- based growth. The State further recognizes the necessity of balancing the provision 6 of secure and affordable electricity with the right of the people to a balanced and 7 healthful ecology in accord with the rhythm and harmony of nature. The State also recognizes the emergence of rooftop photovoltaic or solar technology as an increasingly affordable and feasible method of complementing the electricity needs of residential and commercial end-users, thereby reducing overall demand. To this end, it is hereby declared a policy of the State to further promote rooftop 12 solar technology among residential and commercial end-users, and to address 13 institutional barriers to its adoption thereof.

Sec. 3. Section 4 of Republic Act No. 9513 is hereby amended to read as

follows: "Section 4. Definition of Terms. - As used in this Act, the following terms are herein defined: "x xx "(i) "Distributed generation" refers to a system of small generation entities supplying directly to the distribution grid t, any one of which shall not exceed one hundred kilowatts (100KW) in capacity;] OR TO END-USERS, AND WHICH ARE PRIMARILY USED TO MEET OR AUGMENT THE ELECTRICITY REQUIREMENTS OF END USERS."

Sec. 4. Section 10 of the same Act is hereby amended to read as follows:

"Section 10. Net-Metering for Renewable Energy. - Subject to technical considerations and without discrimination and upon request by distribution end- users, the distribution utilities shall enter into net-metering agreements with qualified end-users who will be installing RE system. "The ERC, in consultation with the NREB and the electric power industry participants, shall establish net metering Interconnection standards and pricing methodology and other commercial arrangements necessary to ensure success of the net-metering for renewable energy program within one (1) year upon the effectivity of this Act. IN ESTABLISHING A PRICING METHODOLOGY, THE ERC SHALL ENSURE THAT THE SAME REFERENCE SHALL BE APPLIED TO BOTH THE ELECTRICITY IMPORTED FROM AND EXPORTED TO THE DISTRIBUTION GRID BY END-USERS. "The distribution utility shall be entitled to any Renewable Energy Certificate resulting from net-metering arrangement with the qualified end-user who is using an RE resource to provide energy and the distribution utility shall be

able to use this RE certificate In compliance with its obligations under RPS. "The DOE, ERC, TRANSCO or its successors-in-interest, DUs, PEMC and all relevant parties are hereby mandated to provide the mechanisms for the physical connection and commercial arrangements necessary to ensure the success of the Net-metering for Renewable Energy program, consistent with the Grid and Distribution Codes."

Sec. 5. Standardization of Permits and Licensing Requirements. - The

Department of Energy (DOE), In coordination with the Department of Interior and 11 Local Government (DILG), In coordination with the relevant power distribution utilities 12 and Local Government Units, shall standardize and streamline permitting and licensing requirements in the installation of rooftop solar projects.

Sec. 6. Solar Installation Loans. - Pursuant to the declared national policy of

this Act, the Board of Trustees under Republic Act No. 9679, otherwise known as the "Home Development Mutual Fund Law of 2009" shall develop a loan program for 17 qualified members for the acquisition and installation of solar panels as part of home 18 improvement or as a component of the housing unit to be purchased, subject to the prevailing Pag-IBIG Fund rules and regulations.

Sec. 7. Installation of Solar Panels on Government Buildings. - All government

agencies, in coordination with the Department of Energy (DOE), shall install solar energy systems in their respective offices and buildings. The solar panels shall supply at least five percent (5%) of the electric power requirements of each government office or building within three (3) years from the effectivity of this Act, which shall be further increased by five percent (5%) every five (5) years thereafter.

Sec. 8. Appropriations. - Such funds necessary to carry out the provisions of

this Act shall be included under the appropriations of the Department of Energy (DOE) in the annual General Appropriations Act.

Sec. 9. Implementing Rules and Regulations. - The Department of Energy

(DOE), National Renewable Energy Board (NREB), Energy Regulatory Commission (ERC), Department of Interior and Local Government (DILG), in consultation with the concerned stakeholders in the electric power and renewable energy industry shall

1 jointly promulgate the implementing rules and regulations of this Act within ninety (90) days of its effectivity.

Sec. 10. Separability Clause. - If any part or provision of this Act shall be

declared unconstitutional and invalid, such declaration shall not invalidate other parts thereof which shall remain in full force and effect.

Sec. 11. Repealing Clause. - All laws, decrees, executive orders, proclamations,

rules and regulations, or their parts thereof, which are inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly.

Sec. 12. Effectivity Clause. - This Act shall take effect fifteen (15) days after its

10 publication in the Official Gazette or in a newspaper of general circulation. Approved,