Philippines Solar Policy Snapshot
The Philippines has become one of Southeast Asia's most attractive solar markets — open to foreign investors, with competitive auctions and rising demand. Here's the regulatory picture.
Last updated: March 2025
Current status
Green Energy Auction
GEAP Round 3 (2024)
The Green Energy Auction Program (GEAP) is the primary procurement mechanism. Round 2 awarded 3.6 GW across solar, wind, and biomass. Round 3 targets an additional 4.6 GW with solar allocated 2 GW.
Net metering
100 kW cap, export credit
RA 9513 (Renewable Energy Act) provides net metering for systems up to 100 kW. Export credits are valued at the blended generation rate (~PHP 5.5-6.5/kWh). DUs are obligated to interconnect eligible systems.
RPS compliance
2.52% annual increment
The Renewable Portfolio Standard requires distribution utilities and retail electricity suppliers to source an increasing share from renewables. The minimum annual increment is 2.52%, reaching 35% RE share by 2030.
Foreign ownership
100% allowed since 2022
RA 11659 (amended Public Service Act) allows 100% foreign ownership of renewable energy projects. Previously capped at 40%. This has significantly increased foreign developer interest.
Recent changes
Feb 2025
GEAP Round 3 results expected
DOE is reviewing bids for 4.6 GW across all RE technologies. Solar submissions reportedly exceeded 8 GW, indicating strong developer interest and competitive pricing.
Oct 2024
GEAP Round 3 launched
DOE opened bidding for 4.6 GW: 2 GW solar, 1.5 GW wind, 600 MW biomass, 500 MW emerging RE. Reserve prices set at PHP 4.72/kWh for solar.
Jul 2024
Enhanced net metering rules
ERC Resolution 2024-18 streamlines interconnection for net metering systems. Processing time reduced from 45 to 20 business days. Metering equipment costs to be shared.
Mar 2024
GEAP Round 2 contracts signed
Final PSAs executed for 3.6 GW from Round 2. Average solar price: PHP 3.88/kWh (~$0.069/kWh), 12% below the reserve price. 20-year contract terms.
Nov 2023
Green Energy Option Program expansion
DOE expanded the GEOP to allow commercial/industrial users with 100 kW+ demand to source directly from RE generators. Over 200 end-users registered by Q1 2024.
Jun 2023
Updated RE incentive framework
Board of Investments extended the income tax holiday for RE projects to 7 years for solar (up from 4). Duty-free importation of RE equipment also extended through 2030.
Who is affected
Utility-scale developers
GEAP is the primary entry pathway. Competitive auction prices have dropped below PHP 4/kWh for solar. Must secure grid connection and environmental compliance certificate before bidding.
C&I rooftop installers
Net metering up to 100 kW with export credit. GEOP enables direct sourcing for 100 kW+ users. Strong demand from BPO, manufacturing, and retail sectors.
Foreign investors
100% foreign ownership enabled since 2022. No restrictions on RE project ownership. Tax holidays, duty-free imports, and carbon credit eligibility available.
Distribution utilities
Must comply with RPS targets (2.52% annual increment). Obligated to interconnect net metering systems. Competitive procurement through GEAP auctions.
Key dates
GEAP Round 3
Q1 2025
Results & PSA execution
RPS target
35% by 2030
Minimum RE share for DUs
Energy Plan
15 GW solar by 2040
PEP 2023-2050 target
Sources
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