Bill seeks to encourage use of small solar power systems

MANILA, Philippines - Bayan Muna party-list Rep. Teddy Casiño has filed a bill that would “reduce electricity rates and revolutionize the power industry by putting it in the hands of the people.”

The proposed One Million Solar Rooftops Act or House Bill 5405 mandates the government to encourage the use of small solar power systems in homes and business establishments through various financing packages and fiscal incentives.

In his bill, Casiño said government financial institutions such as Pag-IBIG, GSIS and SSS can offer soft loans for members who want to install solar power rooftops in their homes and businesses. The proposed act covers solar power systems with a capacity of 10 kilowatts (kW) and below for residential and 500 kw and below for business establishments.

The bill also requires electricity distributors like Meralco to allow small solar power users to feed excess power into the system and get paid for it through a net-metering arrangement, resulting in savings in their monthly bills.

“This measure will make ordinary electric consumers producers of electricity as well, thereby empowering them and opening up various options for reducing their electricity bill. It even allows the homeowner to earn extra money when he is at work and his kids are at school, since the solar power rooftop produces electricity the whole day,” Casiño said.

“It is hoped that through this, the demand for clean solar energy, as well as the opportunities for local manufacturing and related solar energy products and services, will increase,” the lawmaker said.

At the House Committee on Energy hearing, Casiño insisted that one way to reduce electricity rates is for government to immediately allow the installation of 200 kw of solar power to reduce the expensive peak power rates offered by the Wholesale Electricity Spot Market (WESM).

He said Meralco’s announcement over the weekend to increase its electricity rates to an average 14.19 centavos per kilowatthour (kwh) is sufficient proof of how prices in WESM affect the monthly power bill of consumers.

The solar industry already shared its findings to government on the alarming prices at WESM, particularly in the months from May to July this year, where clearing prices have been above P10 per kwh, spiking to as much as P19 per kwh in June. Last year, in the month of February and September, WESM prices reached as high as P60 per kwh to a low of P35 per kwh, respectively.

“On the other hand, cost of solar power is declining as global prices of panels are rapidly falling. Installing solar now is a wise investment. Solar will prepare the country for the summer months, and arrest a possible increase of peak power prices next year in WESM. If government is serious in implementing the Renewable Energy Law, it has to accelerate its permitting process, start awarding solar service contracts, and allow homeowners and commercial establishments to produce their own power needs by using their rooftops,” Casiño said.