Updated FIT Rates Set to Power the Next Wave of Renewable Projects
- December 22, 2025
The Energy Regulatory Commission (ERC) has approved long-pending adjustments to feed-in tariff (FIT) rates covering the period from 2021 to 2025, allowing renewable energy developers under the program to recover authorized amounts over five years beginning in 2026.
In a statement, ERC Chairperson Francis Saturnino Juan said the decision marks the first adjustment to the FIT scheme since 2020 and reflects the regulator’s commitment to sustaining investments in clean energy. “It underscores our commitment to uphold and ensure the success of the FIT system as enshrined in the Renewable Energy Act,” Juan said.
The FIT mechanism, established under the Renewable Energy Act of 2008, provides fixed payments per kilowatt-hour (kWh) to eligible power plants that use renewable sources, such as solar, wind, biomass, and run-of-river hydropower. These payments are designed to ensure stable returns for developers and encourage continued expansion of the renewable energy sector.
New Rates Distribution
Under the newly approved adjustments, biomass plants that entered the FIT system in 2014 and 2015 will receive rates of ₱7.0655 per kWh in 2021, ₱6.9609 in 2022, ₱7.3298 in 2023, ₱7.9363 in 2024, and ₱8.1259 in 2025.
For run-of-river hydro projects, the corresponding rates are ₱6.1747, ₱6.1404, ₱6.4514, ₱6.9714, and ₱7.1626 per kWh for 2021 through 2025.
Solar power plants that qualified in 2014 will receive ₱10.5513 per kWh in 2021, rising to ₱12.0074 in 2025, while wind projects from the same period will get ₱9.1940 in 2021, climbing to ₱10.5178 by 2025.
The ERC clarified that the latest adjustments apply only to specific FIT-eligible plants from the earlier rounds, with rates for other qualified facilities to be detailed in a separate resolution. The recalculated figures account for factors such as inflation, foreign exchange fluctuations, and operational costs, as required by the FIT System Rules.
A Key Mechanism For Sustainability
The FIT system is a key policy instrument introduced to accelerate renewable energy development in the Philippines. Following the enactment of the Renewable Energy Act of 2008, the ERC issued implementing resolutions in 2010 and 2013 to operationalize the mechanism.
Under the scheme, the ERC determines the tariff rate for each renewable technology, while the Department of Energy (DOE) certifies which projects qualify for FIT eligibility. FIT payments are made for energy exported to the grid, with costs shared among all on-grid electricity consumers through the National Transmission Corporation (TransCo).
Currently, there are 84 FIT-accredited renewable energy plants across the country with a combined capacity of 1,707.63 megawatts (MW). These include 34 biomass plants (259.02 MW), 25 solar farms (584.93 MW), 39 run-of-river hydro plants (436.77 MW), and seven wind farms (426.90 MW).
Moving Toward a Balanced Energy Transition
The ERC’s approval is a crucial step toward stabilizing investor confidence amid a changing energy landscape. Apart from accounting for economic variables over the past five years, the updated FIT rates also reaffirm the government’s commitment to long-term renewable energy integration.
The adjustments are expected to provide predictability for developers while ensuring consumers continue to benefit from cleaner, more diversified power sources.
Source:
https://business.inquirer.net/564543/erc-clears-feed-in-tariff-adjustments
