Supportive Policy Aids The Nation In Meeting

Solar PV Goals

The Philippines government has put in place supportive policies to encourage the development of the solar PV industry, aiding the nation in achieving its solar energy objectives These policies, stimulate private sector investment in solar PV projects as well as attract local and foreign investors to the market and support the growth of the nation's renewable energy sector, including tax incentives, subsidies, and easy access to finance. Additionally, the government has put in place policies that support the creation and utilization of renewable energy sources, such as solar energy, which has boosted their adoption throughout the nation With these policies in place, the Philippines is well on its way to lowering its reliance on fossil fuels and increasing the share of renewable energy sources in its energy mix

The Philippines' 2040 solar PV targets will be greatly aided by the supportive policy environment Policies, rules, and incentives from the government can foster investment and expansion in the solar energy industry This can enhance the financial feasibility of solar energy projects overall, expand access to funding, and draw private sector investment. This can thus result in quicker and more extensive deployment of solar PV technology, which is essential in achieving the nation's ambitious targets for the production of renewable energy

The Philippines has put in place several regulations to encourage the growth of the solar energy industry The Renewable Energy Act of 2008, Net Metering, and the Solar Home System Program are a few of the notable policies, these and other policies create an environment that is conducive to investment and expansion in the solar energy industry, which can help the nation meet its lofty targets for the production of renewable energy

Department of Energy Circular outlines the Feed-in Tariff program, and provides a guaranteed price for electricity generated from renewable energy sources, particularly solar. The Philippines has a number of policies and programmes designed to encourage the development of its solar energy industry and help it meet its solar PV objectives. Some of the nation's most important solar PV policies are listed below, including e Philippines a seven-year break from corporate income taxes; a reduced corporate income tax rate of 10% after the tax holiday expires; tax exemptions for carbon credits produced by renewable energy sources; a 1 5 percent real estate tax cap on the original cost of facilities and equipment used to produce renewable energy; and exemptions from value-added taxes for the acquisition, grid connection, and transmission of electricity produced from renewable sources.

Net Metering Regulation: The cost of owning and operating a solar PV system may be reduced because of this policy, which permits consumers with solar PV systems to sell excess electricity back to the grid.

Feed-in Tariff Program: To stimulate investment in the renewable energy sector, this programme offers guaranteed fixed rates for power produced from renewable sources, including solar

Department of Energy's Solar Power Development Plan: This plan describes the policies and actions necessary to meet the government's ambition of having 3 GMW of installed solar capacity in place by the year 2040

By opening up its renewable energy sector to foreign investment in its entirety, the Philippines has significantly altered its energy legislation With the modification, foreign investors can now own 100% of the equity in companies that explore, develop, and use renewable energy sources like solar, wind, hydro, and ocean or tidal The regulatory modification comes as the Philippines looks to draw in international capital to expand its renewable energy industry and achieve its long-term climate goals.

The development of the Philippine solar energy industry and the achievement of the nation's lofty solar PV goals are both significantly aided by these policies and programmes

Enticing Solar Policy C Numerous Investment

The installation of solar panels on hou one of the many investment opportunit in solar policy has brought. The Renew establishes state policy to promo development of renewable energy so limited to biomass, solar, wind, hydro energy resources, as well as hybrid sy self-reliance. This is done by impleme development strategies to lessen the fuels and, as a result, reduce the co fluctuations in the global market

One of the major obstacles to reaching the target 35% share of renewable energy in the power generation mix by 2030 and 50% share by 2040 will be resolved by eliminating the nationality requirement imposed on businesses engaged in the exploration, development, and utilization of solar, wind, hydropower, and ocean energy This will also allow the entity of foreign capital into the country's RE industry

After November 2022, the statute was changed. According to the energy secretary, the Philippines can now directly carry out the exploration, development, production, and use of renewable energy, or enter into agreements for renewable energy services or operations with Filipino or foreign nationals, Filipino or foreign companies, or Filipino or foreign associations, without a limit on the amount of foreign ownership

As a result of changes made to the implementing rules and regulations (IRR) of the Renewable Energy (RE) Act of 2008 by the Department of Energy (DOE), foreign entities can now hold 100% of renewable energy projects, particularly in the wind and solar investment sectors Investors can take advantage of these chances to diversify their holdings and profit from the market expansion for renewable energy

Early in November 2022, Energy Secretary Raphael PM Lotilla approved a circular that changed the Renewable Energy Act of 2008's Implementing Rules and Regulations (IRR) to permit 100% foreign investment in renewable energy projects including solar and wind

Typically, foreign investors have the substantial financial resources required to carry initiatives to economic completion. They also have the technical know-how required to install and run these sustainable energy technologies

Additionally, "the exploration, development, production, and usage of natural resources shall be under the full control and supervision of the state," according to the IRR of the Renewable Energy Law Such operations are still authorized, but only in conjunction with Filipino citizens or businesses or organizations with at least 60% Filipino ownership

Before the DoE changed the regulations, foreign developers could only own up to 40% of renewable energy projects. The Department of Justice (DOJ) of the Philippines stated in October that foreign investors in renewable energy projects in the country should be permitted to own 100% of a project rather than being limited to a 40% share

To balance the power mix portfolio, the Philippines' energy transition strategy mainly relies on investments in renewable energy, with a target share of 35 percent by 2030 and 50 percent by 2040 At a ceremony to provide the Commission on Audit (COA) with a Certificate of Compliance as a Qualified End-User on January 16, 2023, the Energy Regulatory Commission (ERC) hailed the COA as the national agency champion for the Net Metering Program

The rooftop panels were placed in 2017 by the COA in collaboration with the Philippine National Oil Company (PNOC) Renewables Corporation to demonstrate support for the government's move toward renewable energy and to make use of less expensive alternative sources of electricity We started using solar panels five years ago, and now we are reaping the rewards in the money saved We have produced total savings for both buildings of more than PhP800,000 for the period from January to September 2022 alone. We hope that additional organizations will recognize the advantages and be inspired to take our lead, Cordoba, the COA's chairperson, stated

The COA's actions are in line with the government's policy of supporting renewable energy, and it is a significant government agency that has registered for the net-metering scheme

The Renewable Energy (RE) Act of 2008's first fully operational non-fiscal incentive tool is the Net-Metering Program By building a solar plant on its property, a regular energy user can transition into a "prosumer" (producer-consumer) through net metering As a prosumer, the consumer can generate some of their own electricity needs through an installation of RE. Any extra electricity produced can subsequently be sold to the distribution system, resulting in a rebate on the consumer's monthly bill

Homeowners and business owners can sign up for the programme with their distribution utility through the installation of solar PV panels up to 100 kW to save money while partially meeting their own consumption needs.

Government agencies are not currently required to use net metering In a meeting with the President in November 2022, the ERC Chairperson and Energy Secretary emphasized the direct benefits derived from this programme as well as protection against rising electricity prices, drawing on the positive experience of agency champions (like COA and other local government units)

Only 7,583 qualifying end-users are currently enrolled in the Net-Metering Program as of 2013, with 6,120 of these customers located in Luzon, 1,168 in the Visayas, and 295 in Mindanao A lot of the country needs more aggressive efforts to promote and implement the programme, even if it clearly shows the potential for electricity cost reductions and protection against bill surprises The ERC is sure that the net metering scheme will see a large increase because the government is driving this endeavour