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Glossary

Distribution Utility(DU)- provides distribution services


and connections to its system for any end-user within
its franchise area, ex: Iselco,Meralco
Qualified End-Users(QE)- DU customers who are in
good credit standing in the payment of their electric
bills to their DU are qualified to participate in the Net-
Metering Program for Renewable Energy.
Abbreviations
CFEI Certificate of Final Electrical Inspection NGCP National Grid Corp of the Philippines
DAS Distribution Assets Study NGO Non-governmental organization
DG Distributed Generation NREB National Renewable Energy Board
DIS Distribution Impact Study OBO Office of the Building Official
DMC Distribution Management Committee ODA Official Development Assistance
DoE Department of Energy PEC Philippine Electrical Code
DU Distribution Utilities PEPOA Private Electric Power Operators
EC Electric Cooperative Association
EDP Environmental Development Project PFI Participating Financial Institutions
ERC Energy Regulatory Commission PSPA Philippine Solar Power Alliance
IFC International Finance Corporation PV Photovoltaic
kW Kilowatts QE Qualified End Users
kWh Kilowatts per hour QTP Qualified Third Party
kWp Kilowatt peak RE Renewable Energy
LGU Local Government Unit ROI Return on Investment
MW Megawatt STC Standard Test Condition
Applicable to on-grid systems.
Only for installation of 100 kW
For Renewable Energy(RE) such as wind, solar,
biomass or other RE systems capable of being
installed in Qualified End-Users(QE) premises
End-user should be in good credit standing in the
payment of electricity bills to the Distribution
Utility(DU)
Renewable Energy(RE) system must be compliant
with standards set in PEC(Electrical Code),
PDC(Distribution Code), DSOAR(Distribution Services
and Open Access Rules) and Net-metering
Interconnection Standards.
Either 2 uni-directional meters or 1 bi-directional
meter. Third meter may also be installed to measure
total Renewable Energy(RE) generation.
System loss: P0.4723
Distribution charge: P1.9112
Subsidies: P0.1093
Universal Charges: P0.1188
Tax: P0.9046
P5.6580 + P1.1839 + = P11.106/kWh
If positive: Qualified End-user(QE) shall pay the
amount to Distribution Utility(DU)
If negative: Distribution Utility(DU) shall credit
this amount to Qualified End-users(QE) next bill
Qualified End-Users(QE) facility should
operate in parallel with the Distribution
Utility(DU)
QE must inform the DU if its going to
synchronize/connect.
If the DU system is down, the facility should
automatically disconnect.
QE to provide DU with contact numbers.
QE shall maintain the facility in a safe manner
as approves by the Distribution Utility(DU).
Roof Space Requirements

25
20
15
10
Average Efficiency (%)
5
0 Required Surface Area for
1kWp (sq. meter)

Solar Panel Types


Net-metering application with
Distribution Utility
A

A
Existing Net-metering Project Sample
490 Wattpeak Residential Installation
Project Setup
2 units- 245Wattpeak Panel
2 units- Microinverter
1 unit- Fiberglass mounting structure
1 unit- Power Manager
Installation is less than a day.
Key facts and figures
Cost of Php 78,000 or Php 170/Wattpeak
Estimate of 803 kWh annual production
Simple Calculation of ROI
P78,000/(803kWh x P11.91/kWh avoided cost)
= approx. 8 years ROI
Can supply 3 x 6W CFL, a 14 inch TV and a 228W
refrigerator
Project Performance

Energy Produced 803kWh/yr


Energy Produced 9,563 Php/yr
Energy Produced over life 177,860Php
Greenhouse Gas emission 0 tCO2/yr
Return Of Investment On Solar
Installation
The example below shows a sample ROI
calculation of a solar roof top in the Philippines.
Please check with your solar installer and your
DU the numbers applicable to your solar roof top.
Disclaimer: This example is a hypothetical
calculation which should illustrate the
methodology of calculating the return of
investment of a solar roof top under net-
metering rules in the Philippines.
Data Assumptions(Net-metering)*
PV Lifetime: 20years
Rated System Capacity 0.5Kwpeak
Module Efficiency 16%
Yield=Capacity*Efficiency*Hours per year .5kwp*.16*8760hrs
Yearly Generated Power 700.8kwh per year
Degradation Power 0.50%
Own Consumption 70%
DU Charge 12.5718Php
Annual Increase in DU charge 3%
Net Export 30%
Du Generation Charge 5.4951Php
Maintenance/year/1kwPmodule 900Php
Cost of Installed PV system/kwP 120,000Php
Total Cost of Installed PV system 60,000Php
*Cited from DOEs Net-metering reference guide Philippines.
Increase in DU charge vs. Degradation
of Solar Panel
%
1.8
1.7
1.6
1.5 Annual
Increase in DU
1.4 Charge (%)
1.3 Degradation
1.2 Factor of Solar
Panel (%)
1.1
1
0.9
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Year
Savings per year
Php
12000
11000
10000
9000
8000 Net Export to
7000 Distribution
6000 Utility
5000 Avoided
4000 Consumption
3000 Cost
2000
1000
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Year
Total Savings and Cumulative Saving
Php
180000
170000
160000
150000 Total Savings
140000
130000
(Savings less
120000 maintenance)
110000
100000
90000
80000
70000
60000
50000
40000 Investment
30000 and
20000
10000 Cumulative
0 savings
-10000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
-20000
-30000
Year
-40000
-50000
-60000
Detailed Data for ROI of Net-metering
Based on Yearly Consumption
Degradation Avoided Investment and
Annual Increase Net Export to Total
Year Factor of Solar Consumption Cost Savings per year Maintenance Cumulative
in DU Charge DU Savings
Panel w/ Solar savings

1 0 0 6167.222208 1155.289824 7322.512032 450 6872.512 -53,127


2 103% 99.50% 6320.47768 1183.998776 7504.476456 450 13926.988 -46,073
3 1.0609 99.00% 6477.37798 1213.390505 7690.768485 450 21167.757 -38,832
4 1.092727 98.50% 6638.003868 1243.480138 7881.484006 450 28599.241 -31,401
5 1.12550881 98.00% 6802.43767 1274.283098 8076.720767 450 36225.962 -23,774
6 1.159274074 97.50% 6970.763296 1305.815103 8276.578399 450 44052.54 -15,947
7 1.194052297 97.00% 7143.066265 1338.092173 8481.158439 450 52083.699 -7,916
8 1.229873865 96.50% 7319.433726 1371.130635 8690.564361 450 60324.263 324
9 1.266770081 96.00% 7499.954475 1404.947121 8904.901596 450 68779.165 8,779
10 1.304773184 95.50% 7684.718979 1439.558579 9124.277557 450 77453.442 17,453
11 1.343916379 95.00% 7873.819393 1474.982271 9348.801665 450 86352.244 26,352
12 1.384233871 94.50% 8067.349586 1511.235783 9578.585369 450 95480.829 35,481
13 1.425760887 94.00% 8265.405152 1548.337021 9813.742174 450 104844.57 44,845
14 1.468533713 93.50% 8468.083438 1586.304222 10054.38766 450 114448.96 54,449
15 1.512589725 93.00% 8675.483557 1625.155951 10300.63951 450 124299.6 64,300
16 1.557967417 92.50% 8887.706407 1664.91111 10552.61752 450 134402.22 74,402
17 1.604706439 92.00% 9104.854693 1705.588938 10810.44363 450 144762.66 84,763
18 1.652847632 91.50% 9327.032941 1747.209016 11074.24196 450 155386.9 95,387
19 1.702433061 91.00% 9554.347514 1789.791268 11344.13878 450 166281.04 106,281
20 1.753506053 90.50% 9786.906633 1833.355968 11620.2626 450 177451.3 117,451
Grid Tie System

An arrangement of solar panel connection


wherein electricity can be drawn from the
traditional utility grid (main line) as well as
from the solar panels. It implies solar is not
the only source of electricity.
One is able to import electricity from the
utility grid, but cannot send back the excess
power in the grid
Data Assumptions(Grid tie)*
PV Lifetime: 20years
Rated System Capacity 0.5Kwpeak
Module Efficiency 16%
Yield=Capacity*Efficiency*Hours per year .5kwp*.16*8760hrs
Yearly Generated Power 700.8kwh per year
Degradation Power 0.50%
Own Consumption 80% **
DU Charge 12.5718Php
Annual Increase in DU charge 3%
Maintenance/year/1kwPmodule 900Php
Cost of Installed PV system/kwP 80,000Php
Total Cost of Installed PV system 40,000Php

*Cited from DOEs Net-metering reference guide Philippines.


**Assuming 80% of solar power produced is consumed.
Increase in DU charge vs. Degradation
of Solar Panel
1.8
1.7
1.6
1.5 Annual
Increase in DU
% 1.4 Charge (%)
1.3 Degradation
1.2 Factor of Solar
Panel (%)
1.1
1
0.9
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Year
Savings per year (Grid tie)
Php
12000
Avoided Consumption Cost
11000
10000
9000
8000
7000
6000
Avoided
Consumption
5000
Cost
4000
3000
2000
1000
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Year
Total Savings and Cumulative Saving
Php Grid Tie
180000
170000
160000
150000 Total Savings
140000
130000
(Savings less
120000 maintenance)
110000
100000
90000
80000
70000
60000
50000
40000 Investment
30000 and
20000
10000 Cumulative
0 savings
-10000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
-20000
-30000 Year
-40000
-50000
-60000
Detailed Data for ROI of Grid Tie
Based on Yearly Consumption

Degradation Avoided Investment and


Annual Increase Net Export to Total
Year Factor of Solar Consumption Cost Savings per year Maintenance Cumulative
in DU Charge DU Savings
Panel w/ Solar savings

1 0 0 7048.253952 0 7048.253952 450 6598.254 -33,402


2 103% 99.50% 7223.403063 0 7223.403063 450 13371.657 -26,628
3 1.0609 99.00% 7402.717692 0 7402.717692 450 20324.375 -19,676
4 1.092727 98.50% 7586.290135 0 7586.290135 450 27460.665 -12,539
5 1.12550881 98.00% 7774.21448 0 7774.21448 450 34784.879 -5,215
6 1.159274074 97.50% 7966.586624 0 7966.586624 450 42301.466 2,301
7 1.194052297 97.00% 8163.504303 0 8163.504303 450 50014.97 10,015
8 1.229873865 96.50% 8365.067116 0 8365.067116 450 57930.037 17,930
9 1.266770081 96.00% 8571.376543 0 8571.376543 450 66051.414 26,051
10 1.304773184 95.50% 8782.535976 0 8782.535976 450 74383.95 34,384
11 1.343916379 95.00% 8998.650735 0 8998.650735 450 82932.601 42,933
12 1.384233871 94.50% 9219.828098 0 9219.828098 450 91702.429 51,702
13 1.425760887 94.00% 9446.177317 0 9446.177317 450 100698.61 60,699
14 1.468533713 93.50% 9677.809644 0 9677.809644 450 109926.42 69,926
15 1.512589725 93.00% 9914.838351 0 9914.838351 450 119391.25 79,391
16 1.557967417 92.50% 10157.37875 0 10157.37875 450 129098.63 89,099
17 1.604706439 92.00% 10405.54822 0 10405.54822 450 139054.18 99,054
18 1.652847632 91.50% 10659.46622 0 10659.46622 450 149263.65 109,264
19 1.702433061 91.00% 10919.2543 0 10919.2543 450 159732.9 119,733
20 1.753506053 90.50% 11185.03615 0 11185.03615 450 170467.94 130,468
Comparison

NET-METERING GRID TIE


-Excess power produced is sold back to -Excess power is wasted when not
the grid consumed
-Higher initial cost (around 20k php for -Lower initial cost
each application)
-Evaluation and study for each application -Simple installation
(takes as much as 100 days)
-Flexible on consumers schedule -Consumer should schedule high power
(consumer earns even when not at loads during the day to enjoy the savings
home)
-Synchronized with the grid, power is -Functions even when grid is deenergized
cut-off when grid is deenergized as long as the solar panels are producing
power
Quotations Received
Maxolarenergy Philippines
500Wpeak grid-tie System(supply and installation)
40,000 php

Meister Solar
3.44kWpeak grid-tie System(supply and
installation)
276,920 php
Solterra Energy Philippines
500Wpeak grid-tie System(supply and installation)
60,000 php
1kWpeak grid-tie System(supply and installation)
89,500 php
Solar Systems
1.33kWpeak grid-tie system(supply and
installation)
103,890 php
Philippines Sustainable Energy
Finance (SEF) Program
Investment and advisory program being implemented by the
International Finance Corporation (IFC) in different regions around the
world.
SEF works with private banks to encourage lending to energy efficiency
(EE) and renewable energy (RE) projects by supporting them through:
1) Technical Advisory (TA) services which help them build capacity to
develop/establish this new business line (through training, product
development, pipeline development); and
2) Risk Sharing Facility (RSF) where IFC covers 50% of the loan losses
in case of default. With RSF, client banks are more inclined to finance
EE/RE projects which enhances their portfolio build up.
At present, PSEF has three (3) partner private banks: Bank of the
Philippine Islands (BPI), Banco De Oro (BDO), and BPI Globe BanKO
(BanKO), with BPI having access to the RSF.
Partner Private Banks

BDO
https://www.bpiexpressonline.com/p/1/203/busi
ness-loans-sustainable-energy-finance
Tel No.: 845-5731, 816-9751, 845-5209, 816-5373
Fax: 845-5935
Email: bpi_sef@bpi.com.ph
BPI
https://www.bpiexpressonline.com/p/1/203/busi
ness-loans-sustainable-energy-finance
SEF Core team 878-4567 or 840-7170