Year:2014 (July 3rd)
Policy status:In Force
Date Effective:2014 (July 3rd)
Policy Type:Regulatory Instruments, Economic Instruments, Economic Instruments>Fiscal/financial incentives, Economic Instruments>Fiscal/financial incentives>Grants and subsidies
Policy Target:Solar, Solar>Solar photovoltaic, Solar>Solar photovoltaic>Off-grid, Solar>Solar photovoltaic>Residential
Policy Sector:Electricity
Size of Plant Targeted:Large, Small, Small and Large
Agency:Department of Energy (DOE)
Legal References:DC 2014-07-0012: Accelerating Household Electrification in Off-grid and Isolated Areas through Regulated Solar Home Systems

The circular provides guidance on the implementation of the Solar Home Systems (SHS) as part of the Household Electrification Development Plan (HEDP). It aims to attain 90% household electrification by 2017.

It states that SHS can be installed by distribution utilities (DU), and are funded by fees collected from consumers and by government subsidies. This circular regulates the tariff collection process and the associated government subsidies.

Tariff Collection: A "fee-for-service" is collected monthly by the DUs for energy supplied through the SHS. The fee is determined by the Energy Regulatory Commission (ERC). The tariffs are set on the basis of the expected cost of supplying electricity using SHS in the given context (e.g. topography, distances). 

Subsidies: A capital subsidy to cover initial procurement and installation costs is provided to DUs on output basis, i.e. payment of the subsidy depends on the number of SHSs installed. The amount of subsidy is determined by the Department of Energy on an annual basis and depends on the availability of funds and the price of the SHSs. The eligibility of the SHSs is determined by the Department of Energy. 

Related policies:Act Ordaining Reforms In The Electric Power Industry, Amending For The Purpose Certain Laws And For Other Purposes , Renewable Energy Act , Implementation of the Household Electrification Programme
Related Documents:

In order to view a full version of the DC on Accelerating Household Electrification through Regulated Solar Home Systems Programme in Philippines please click here.

Last modified: Thu, 16 Feb 2017 11:29:36 CET