Solarman PHOne of the most common things we hear during a survey is some version of: “So Meralco will pay me for my solar?” It is an understandable hope. It is also not quite how net metering works, and getting it wrong can lead you to buy the wrong size of system.
What net metering actually does
A grid-tie solar system powers your home first. When your panels produce more than you are using at that moment, the extra flows out to the grid. Under net metering, Meralco replaces your meter with a two-way (bidirectional) meter that records two things separately: the power you import from the grid, and the power you export to it.
At the end of the billing period, the exported power is turned into a peso credit and subtracted from your bill. That is the whole mechanism. You do not receive a cheque or a bank transfer. You receive a smaller bill.
Why the credit is worth less than what you pay
The rate you pay for each kilowatt-hour you buy from Meralco includes more than the cost of generating that power. It also covers transmission, distribution, taxes and other charges. The credit for power you export is based on the generation cost only, so it is lower than the full retail rate.
In plain terms: a kilowatt-hour you use yourself, straight from your panels, saves you the full retail rate. A kilowatt-hour you export earns a smaller credit. Both help, but they are not equal.
What happens to extra credit
If your credit in a month is larger than your bill, the leftover is generally carried forward to later bills rather than paid out. The detailed rules are set by the Energy Regulatory Commission and can change, so ask Meralco for the current terms when you apply. Either way, the point stands: net metering reduces bills. It is not an income stream.
What this means for sizing
Because self-used power is worth more than exported power, the best-value system for most homes is one sized to the power you use while the sun is up, not the biggest array your roof can hold. A few practical consequences:
- Size to your daytime use. Your Meralco bill shows how much you use in a month. What you tell us about when you use it, day or night, matters just as much.
- Shift what you can to daytime. Laundry, ironing, water pumps and pre-cooling a room in the afternoon all use solar directly instead of exporting it.
- Be wary of “oversize it and earn”. Extra panels that mostly export earn the lower credit rate. They are not always worth the added cost.
- Expect exports anyway. On weekends or days you are out, some power will flow to the grid. Net metering makes sure that power is not wasted.
Applying is a separate step
Net metering is not automatic. After installation, an application goes to Meralco with the required documents, followed by an inspection and the meter change. This can take weeks to months, depending on the paperwork and the queue. Until the two-way meter is installed, your system still powers your home during the day; you just do not get credit for exports yet.
Net metering covers renewable energy systems up to 100 kW, which includes practically every home and most small-business rooftops.
The short version
- Net metering is a bill credit, not a cash payout.
- Exported power is credited at a lower rate than the power you buy.
- Solar you use yourself is worth the most, so size for daytime use.
- The application, inspection and meter change take time. Plan for it.
If someone promises that net metering will “pay” for your system on its own, ask them to show the numbers on your own bill.
Solarman PH