What Is Net Metering?
Net metering is a billing arrangement that allows solar panel owners to export excess electricity to the distribution grid in exchange for credits on their electricity bill. When your solar panels produce more energy than your home or business uses, the surplus flows back to the NORECO grid — and you receive credits at the retail electricity rate.
Under the Philippines' Renewable Energy Act (RA 9513) and ERC rules, distribution utilities with franchise areas of less than 1MW capacity — including NORECO I and NORECO II — are required to support net metering for qualifying customers.
Key benefit: Net metering credits carry over month-to-month. During high-production months (summer), you accumulate credits that offset your bills during cloudier months. Any remaining credits at year-end are paid out in cash by the cooperative.
NORECO Coverage Areas — Negros Oriental
| Cooperative | Service Area (Negros Oriental) | Net Metering Status |
|---|---|---|
| NORECO I | Valencia, Mabinay, Canlaon, Guihulngan, La Libertad, Tayasan | ✅ Active — Mr Solar handles applications |
| NORECO II | Dauin, Zamboanguita, Santa Catalina, Bayawan, Basay, Siaton | ✅ Active — Mr Solar handles applications |
Net Metering Requirements in the Philippines
To qualify for net metering under ERC rules, your solar system must meet the following criteria:
- System capacity of 100 kW or less (residential and most commercial systems qualify)
- Installed by a licensed electrical engineer and contractor (all Mr Solar installations qualify)
- Grid-tie or hybrid inverter with anti-islanding protection
- Bidirectional meter installed by the cooperative (NORECO provides this)
- Signed Interconnection Agreement with the cooperative
- ERC disclosure form submitted prior to installation
The Net Metering Application Process
Mr Solar handles every step of the net metering application on your behalf — at no extra charge. Here's the process:
- Pre-installation ERC Disclosure: Mr Solar submits the ERC disclosure form before installation begins, notifying the cooperative of your intent to connect a solar system
- System Installation: Mr Solar installs your solar system with all required safety equipment, including grid protection devices
- NORECO Inspection: The cooperative schedules a technical inspection of the installation (Mr Solar coordinates this)
- Interconnection Agreement: Upon passing inspection, you sign the net metering interconnection agreement with the cooperative
- Bidirectional Meter Installation: The cooperative installs a bidirectional meter that tracks both power consumed from the grid and power exported to it
- Grid Energization: Your system is officially connected to the grid. Net metering credits start accumulating immediately
Total timeline: 4 to 8 weeks from installation to energization, depending on cooperative scheduling.
How Much Can You Save with Net Metering?
The value of net metering credits depends on your cooperative's retail rate. At NORECO's current residential rate of approximately ₱11–₱13 per kWh, every kWh you export earns you a credit at that rate. For a 5kW system producing 25 kWh/day, that's potentially ₱275–₱325 in credits per day — though in practice, most households self-consume a significant portion of their solar output.
Example: A Negros Oriental homeowner exports an average of 8 kWh/day back to NORECO. At ₱12/kWh, that's ₱96/day, ₱2,880/month, or ₱34,560/year in bill credits — on top of the electricity they already saved by self-consuming their solar output.
Frequently Asked Questions
Does NORECO support net metering in 2025? +
Yes. Both NORECO I (covering northern and central Negros Oriental) and NORECO II (covering the southern part of the province) support net metering under ERC rules. Mr Solar is experienced in completing NORECO net metering applications and handles the entire process for customers in Valencia, Dauin, Zamboanguita, and surrounding municipalities.
How long does the NORECO net metering application take? +
The full process from installation to energization (grid connection with net metering active) typically takes 4 to 8 weeks. The main variable is the cooperative's inspection scheduling. Mr Solar follows up with NORECO on your behalf to keep the process moving.
Do I need to pay extra for net metering application? +
No. Mr Solar includes net metering application handling in all grid-tie and hybrid system packages at no extra charge. The cooperative may charge a small administrative fee for the interconnection agreement (typically ₱500–₱2,000), but there are no fees to Mr Solar for this service.
Can I apply for net metering on an existing solar system? +
Yes, if your existing system uses a grid-tie or hybrid inverter with anti-islanding protection. Mr Solar can assess your existing installation and manage the net metering application for systems installed by other providers, subject to inspection. Contact us for a free assessment.
See also: Full Dumaguete Cost Guide · Off-Grid Systems · Solar Financing Options