LGUs Ordered To Streamline Net-Metering Permits Under New Inter-Agency Rules
- January 30, 2026
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The Department of the Interior and Local Government (DILG) has directed local government units (LGUs) to simplify and accelerate the processing of net-metering applications, following the issuance of a new joint circular aimed at expanding the use of renewable energy systems nationwide.
In a statement, the DILG said it is urging LGUs to comply with Joint Memorandum Circular (JMC) No. 001, series of 2026, which sets standardized timelines and requirements for net-metering installations in residential, commercial, and industrial buildings. The circular was signed by the DILG, the Department of Energy (DOE), and the Department of Public Works and Highways (DPWH).
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 rooftop solar panels—to export excess power to the grid and receive credits on their electricity bills. The mechanism is seen as a way to diversify the country’s energy mix while helping consumers lower power costs and recover investments in renewable energy systems.
Fewer Requirements
Under the new circular, LGUs are required to streamline documentary requirements and strictly observe processing timelines in line with Republic Act No. 11032 or the Ease of Doing Business (EODB) Law. Electrical permit applications related to net-metering installations must be processed within three working days, while Certificates of Final Electrical Inspection (CFEI) must be issued within seven working days.
The JMC enforces a “no additional requirements” policy, prohibiting LGUs from imposing documents beyond those specified in the guidelines. It also mandates the application of deemed approval if LGUs fail to act within the prescribed processing periods.
To further reduce delays, LGUs are encouraged to adopt digital solutions and strengthen internal data-sharing mechanisms. The DILG said it will oversee implementation of the circular in coordination with the DOE and DPWH, including capacity-building initiatives and compliance monitoring through the Ease of Doing Business Online Monitoring System.
The DILG added that the directive supports President Ferdinand Marcos Jr.’s push to accelerate the country’s transition to renewable energy.
Building On Earlier Regulatory Reforms
The latest move builds on earlier efforts by energy regulators to make net metering more accessible. Late last year, the Energy Regulatory Commission (ERC) amended its net-metering rules following a series of public consultations, introducing measures to simplify processes and strengthen consumer protections.
Among the changes was the allowance for the banking and rollover of unused net-metering credits, including their transfer to new property owners in cases of ownership change, subject to specific conditions. The ERC also made the installation of renewable energy certificate (REC) meters voluntary.
To promote transparency, the ERC directed distribution utilities to publish detailed information on their net-metering programs on their websites, including application procedures and quarterly updates on hosting capacities at the distribution transformer level.
As of May 2025, a total of 17,175 electricity end-users were registered under the net-metering program, representing an aggregate potential peak capacity of 157 megawatts.
Pushing Adoption At The Local Level
With permitting often cited as a bottleneck for small-scale renewable projects, the DILG said the new inter-agency guidelines are intended to ensure consistent implementation across LGUs and remove procedural barriers that discourage consumers from participating in the program.
Officials said faster and more predictable permitting at the local level is expected to support wider adoption of distributed renewable energy systems, complementing national policy reforms aimed at scaling up clean power in the Philippines.
Source:
https://tribune.net.ph/2026/01/27/dilg-urges-lgus-to-streamline-net-metering-application-process
https://business.inquirer.net/544806/erc-eases-net-metering-rules-to-boost-renewables
