By Sheldeen Joy Talavera, Reporter
SMALL-SCALE electricity end-users will be able to install solar power systems more quickly as the Department of Energy (DoE) streamlined the permitting process by removing prior approval hurdles.
In a circular released on Wednesday, the DoE directed all distribution utilities (DU) to remove “administrative barriers” to installing small-scale solar generation systems, including pre-installation clearances, technical permits, or inspection fees.
“To achieve the RE (renewable energy) target of 35% by 2030 and 50% by 2040, the DoE envisions maximizing the inclusion, utilization, and acceleration of RE even at the consumer level,” the department said.
The new guidelines cover the use of own-use solar photovoltaic (PV) installations, namely, the self-generating facilities zero-export energy systems (SGF ZESS) and micro-solar systems (MSS), including those used by households and medical facilities.
SGF ZESS refers to solar PV installations that are intended for own-use and not for export of electricity to the distribution system, while MSS refers to consumer-grade, plug-and-play solar generation systems for own use.
Eligible end-users who wish to install SGF ZESS need to get a building permit from the local government unit (LGU), but a new permit is not needed if an existing permit is deemed sufficient by the LGU.
SGF ZESS end-users are not required to secure a certificate of compliance (COC) from the Energy Regulation Commission (ERC). However, the ERC still has the authority to set and enforce technical and commercial rules.
Meanwhile, users of the MSS no longer need to secure a building permit or a COC.
While red tape has been reduced to make the process faster, the DoE has laid down safety protocols, such as requiring all MSS — the small plug-and-play-units — to be equipped with an automatic anti-islanding disconnection safety mechanism.
This feature automatically shuts down the solar system during a power outage, preventing it from feeding electricity back into the grid and accidentally shocking utility workers repairing the lines.
The DoE is also collaborating with the Bureau of Philippine Standards of the Department of Trade and Industry for the issuance of guidelines to include the components of the energy systems in the list of products for mandatory certification.
This will protect consumers from substandard equipment in order to ensure consumer safety, product quality, and system reliability, while avoiding undue regulatory burden.
“There is a need to issue a policy that supports the participation of small-scale end-users in the deployment of RE technologies, by providing a streamlined regulatory approach that complements the existing net-metering framework and other consumer choice program,” the DoE said.
Theresa “Tetchi” C. Capellan, chairman of the Philippine Solar and Storage Energy Alliance (PSSEA), said streamlining of the permitting process would reduce the cost of doing business and shorten the period of installation.
“But there has to be a mechanism to ensure the protection of consumers. This is the challenge that government and industry need to resolve so that the homeowners remain protected and safe,” Ms. Capellan told BusinessWorld.
In April, the DoE also ordered DUs, electric cooperatives, and local government units to fast-track all net metering applications to remove unnecessary delays and simplify procedures in a bid to lower power bills amid global market volatility.
Net metering allows qualified consumers with renewable energy systems of up to 100 kilowatts to export excess electricity to the grid in exchange for credits on their monthly electricity bills.
As of end-2025, the national grid recorded 21,224 qualified end-users with an equivalent total rated capacity of around 200 kilowatt-peak.
“We are pushing faster, simpler, and more responsive approval processes so that more households and businesses can benefit from rooftop solar, lower their electricity bills, and strengthen their resilience against global energy price shocks,” Energy Secretary Sharon S. Garin said.

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