BACKGROUND

Sun is the source of almost all energy on earth. It is responsible for the

photosynthesis that converts sun’s radiant energy into chemical energy making plant

and all animal life possible. Sun provides energy that can be captured in the form of

solar power. The total solar radiation that reached to the earth is equal to 177x1012 kW.

30% of which is reflected back to space, another 47% is absorbed, converted to heat

and re-radiated. The remaining 23% creates wind, powers the water cycle and drives

photosynthesis. Some energy, in the form of geothermal heat, can be tapped from the

earth’s core.

The Philippines enjoys a sizeable amount of sunshine. According to the National

Renewable Energy Laboratory (NREL), the Philippines' average solar radiation ranges

from 128203 watts per square meter, or an average of 161.7 watts per square meter,

based on sunlight duration. This translates to potential power generating capacity of

4.5-5.5 kWh per square meter per day. Both the northern and southern parts of the

country provide ideal locations for installing solar power facilities. The northern part of

the country has enough sunlight to generate an average of 4.5-5 kWh per square meter

per day, while areas in the south can produce an average of 5-5.5 kWh per square meter

of solar power per day as shown in the figure below.

Solar energy is used for power and non power applications. Various

technologies capture the energy derived from solar radiation, concentrate it, store it, and

convert it into other useful forms of energy. Its relatively faster installation and

commissioning time, (i.e. a few days for solar rooftop projects and 6-8 months for larger-scale

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solar farms versus 3 to 5 years for a hydroelectric or a geothermal power plant); the

progressively decreasing cost of solar photovoltaic (PV) cells; and its relatively low

maintenance cost and requirements makes solar energy the most favorable RE resource to

develop. Solar energy is also best suited for remote, isolated, rural, and/or impoverished

communities that do not have access to mainstream on-grid electricity supply

This paper aims to present the three important solar power systems in the Philippines;

the Battery Stored Solar Power System, Solar PV Pumping System and Net Metering.

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Annual Solar Potential in the Philippines Source: Assessment of Solar
Resources in the Philippines, NREL 2000

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 SOLAR POWER BATTERY BACKUP SYSTEMS

A battery backup system allows a user to store energy while the sun is shining

and use that energy at night or on cloudy days. Solar battery backup systems have

become a popular way to save on electricity bills and gain more energy independence.

Storage battery is the fuel tank of your solar power system. Solar storage systems can

increase on-site consumption by up to 70 percent. They absorb surplus solar power and

pass on the energy as required – expensive grid power is hardly necessary. This makes

the systems very attractive for consumers.

The basic components of battery stored solar power system are Solar Panels, a

Charger Controller, Power Inverter, and of course, Batteries to produce electricity from

the sun.

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Solar Power System Component

1. Solar Panel

The first component needed is one or more Solar Panels. They supply the

electricity and charge the batteries. The function of solar panels is to collect energy to

the sun to Direct Current Power. It is mounted 10-12 degrees from horizontal facing

south when you are in the Philippines.

2. Charge Controller

A charge controller monitors the battery’s state-of-charge to insure that when

the battery needs charge-current it gets it, and also insures the battery is not over

charged. Connecting a solar panel to a battery without a regulator seriously risks

damaging the battery and potentially causing a safety concern.

3. Power Inverter

It is the heart of the system. It makes 120 volts AC from the 12 volts DC stored

in the batteries. It can also charge the batteries if connected to a generator or the AC

line.

4. Battery

It stores the electrical power in the form of a chemical reaction. Without storage

you would only have power when the sun was shining or the generator was running.

The basic types of batteries are as follow:

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a. RV / Marine / Golf Cart

RV or Marine type deep cycle batteries are basically for boats & campers and

are suitable for only very small systems. They can be used but do not really have the

capacity for continuous service with many charge/discharge cycles for many years. A

very popular battery for small systems is the Golf Cart battery. They are somewhat

more expensive than deep cycle recreational batteries but are probably the least

expensive choice for a small system on a budget.

The next 3 types are the heavier industrial type batteries. They are all also considered

Deep Cycle and are usually Lead Acid types with much thicker internal plates that can

withstand many deep discharge cycles. These next 3 are all designed for alternative

energy systems.

b. Flooded types

These are Lead acid batteries that have caps to add water. Many manufacturers

make these types for Solar Energy use. They are reasonably priced and work well for

many years. All flooded batteries release gas when charged and should not be used

indoors. If installed in an enclosure, a venting system should be used to vent out the

gases which can be explosive.

c. Gel

Sealed gel batteries have no vents and will not release gas during the charging

process like flooded batteries do. Venting is therefore not required and they can be used

indoors. This is a big advantage because it allows the batteries to maintain a more

constant temperature and perform better.

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d. AGM (Absorbed Glass Mat)

A woven glass mat is used between the plates to hold the electrolyte. They are

leak/spill proof, do not out gas when charging, and have superior performance. They

have all the advantages of the sealed gel types and are higher quality, maintain voltage

better, self discharge slower, and last longer. They are more expensive, but usually get

what you pay for. You will find this type of battery used in airplanes, hospitals, and

remote telephone/cell tower installations.

Solar Storage Battery Technologies

One of the most significant components of solar power systems consist

of battery backup systems that are frequently used to store electric energy harvested

from solar photovoltaic systems for use during the absence of sunlight, such as at night

and during cloudy conditions. Because of the significance of storage battery systems it

is important for design engineers to have a full understanding of the technology since

this system component represents a notable portion of the overall installation cost.

More importantly, the designer must be mindful of the hazards associated with

handling, installation and maintenance. To provide an in-depth knowledge about the

battery technology, this section covers the physical and chemical principles,

manufacturing, design application and maintenance procedures of the storage battery.

Off-Grid setup allows you to be independent from the power supplier in your

area. Setting this type of solar power is more expensive than going grid-tied due to the

exixtense of batteries to power up your home even at night time. This setup also entails

the need to consult with electrical engineers to ensure the system designed is safe and

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will not catch fire as the home will produce its own electricity. Although more

expensive, this is the absolute solution to homes that could not be reached by power

suppliers and an ideal solution to areas mostly battered by storms. For those who lived

in urbanized areas with power suppliers, this is the solution to completely be

independent allowing to self-sufficient and would not be affected by the power

company’s increase rates which happens more or less twice a yearly (Schadow

Expedition Blog, 2014).

Energy Storage

The simplest means of electricity storage is to use the electric rechargeable

batteries, especially when PV modules produce the DC current required for charging

the batteries. Most of batteries used in PV systems are lead-acid batteries. In some

applications, for example when used in locations with extreme climate conditions or

where high reliability is essential, nickelcadmium batteries are used. The major

difficulty with this form of storage is the relative high cost of the batteries and a large

amount required for large-scale application. The following factors should be considered

when choosing a battery for a PV Application (Miro Zeman, Delft University of

technology); Operating temperature range (e.g.: -15°C to 50°C); Self discharge rate (%

per month); Cycle life to 80% depth of discharge (DOD); Charge efficiency from 20%

discharged; Capacity (Ah) at 10 hr & 100 hr rates (C10 & C100); Required frequency

for topping up the electrolyte; Robustness for transport to site; Resistance to

overcharging.

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 CURRENT TRENDS, MILESTONE AND STATUS

Currently, the Philippines have the fifth highest electricity tariff in the world today

and the second in Asia, as the country still suffers from frequent blackouts. Due to the

high electricity rates in the country, exploration and development of new alternative

energy resources such as solar power has been accelerated in order to reduce the country's

dependence on imported fossil fuels. This thereby correlates the growing power demand

in the country with alternative power resources that are sustainable, reliable

and more cost-effective (Frost and Sullivan, 2014).

Although the conditions for solar projects in the Philippines are very positive,

there has been a scarcity of investments in solar projects. While many renewable energy

systems integrators in the Philippines are actively engaged in developing off-grid solar

PV systems and roof-top systems, none of them have ventured into developing large-

scale solar plants following the introduction of the feed-in-tariff policy. "Realizing the

country's critical demand for electricity, San Carlos solar energy is credited with taking a

pioneering initiative to develop the country's first and largest utility scale solar power

plant - SaCaSol, a feat which is commendable in a nascent but high growth oriented solar

power market," said Ms. Suchitra Sriram, Program Manager for Energy & Power

Systems, Frost & Sullivan Asia Pacific.

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 GENERAL DESIGNS AND CONSIDERATIONS

Design Requirements

1. Shading & Shadows on solar panels

When deciding on a location for your solar panels, make sure no shadows will

fall on the solar panel array during peak sunlight hours (say, 9am to 4pm). Not only

could shading of the solar panels significantly reduce their output, but also could cause

damage. Many solar panel manufacturers advertise panels that can withstand shading

but they use internal diodes (by-pass diodes) which in themselves reduce the power

somewhat. It is better to choose a good location to start with, even if it means cutting

down a few trees or otherwise removing obstacles.

2. Temperature & Wind loading considerations

The user wants to mount solar panels in a sunny and non-shaded location to get

maximum sun. But, heat build-up is also a problem. Because the efficiency of solar

panels decreases as temperature increases, the solar panel mounting system should

allow for spacing around the individual solar panels for air circulation. The idea is to

allow air cooling in the hot sun to reduce the temperature of the solar panels. Another

consideration is wind loading. By allowing air to flow around the solar panels, not only

will they remain cooler, but also the wind resistance of the entire array is less.

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3. Selection of array mounting types and strategies

a. Fixed Solar Panel Mounts

If you use the most simple and least expensive type of solar panel mounting system, it

will be completely stationary. The solar panels should always face the equator.

b. Adjustable solar panel mounts

The angle of inclination (tilt) of an adjustable solar panel mount can be changed 2 or

more times during the year to account for the lower angle of the sun in winter as the

earth orbits the sun causing seasonal change.

c. Tracking solar panel mounts

Tracking solar panel mounts follow the path of the sun during the day to maximize the

solar radiation that the solar panels receive. A single axis tracker tracks the sun east to

west and a two-axis tracker tracks the daily east to west movement of the sun and the

seasonal declination movement of the sun. A tracking type of solar panel mount is the

most efficient type.

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Basic mounting strategies

a. Building Integrated

b. Roof mount

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c. Ground mount

d. Pole mount/Tracker

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REFERENCES

http://www.freesunpower.com/batteries.php http://www.altestore.com/store/Deep-Cycle-

Batteries/c434/ http://www.sunforceproducts.com/Support%20Section/Solar%20Panel

%20&%20Charge%20Co ntrollers/The%20Basics%20of%20Solar%20Power%20for

%20Producing%20Electricity.pdf

http://ocw.tudelft.nl/fileadmin/ocw/courses/SolarCells/res00029/CH9_Photovoltaic_syste

ms.pdf

WHAT IS SOLAR PV-POWERED PUMPS?

Pumps that use PV systems are normally powered by DC motors. These motors

use the DC output from the PV panels directly. Alternating current (AC) motors are

sometimes used, but they require more complex control systems. They also result in

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less total energy availability due to the electrical losses caused when an inverter is used

to convert the DC to AC electricity. Because DC motors do not require an inverter,

utilize a less complex control system, and result in more total energy availability, they

are most commonly paired with solar-powered pumps.

The type of pump configuration and mounting can be either submersible,

surface mount, or floating, depending on the water source.

COMPONENTS OF SOLAR PV-POWERED PUMP

A solar-powered water pumping system is made up of two basic components.

The first component is the power supply consisting of photovoltaic (PV) panels. The

smallest element of a PV panel is the solar cell.

Photovoltaic (PV) Panel.

Each solar cell has two or more specially prepared layers of semiconductor

material that produce direct current (DC) electricity when exposed to light. This DC

current is collected by the wiring in the panel. It is then supplied either to a DC pump,

which in turn pumps water whenever the sun shines, or stored in batteries for later use

by the pump.
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 The other major component of these systems is the pump. Solar water pumps are

specially designed to use solar power efficiently. Conventional pumps require steady AC

current that utility lines or generators supply. Solar pumps use DC current from batteries

and/or PV panels. In addition, they are designed to work effectively during low-light

conditions, at reduced voltage, without stalling or overheating.

The figure below shows the typical solar-powered stock watering system includes

a solar array, pump, storage tank and controller.

Solar-Powered Water Pumping System Configurations

There are two basic types of solar-powered water pumping systems, battery-

coupled and direct-coupled. A variety of factors must be considered in determining the

optimum system for a particular application.

The figure below shows the battery-coupled water pumping system which

consist of photovoltaic (PV) panels, charge control regulator, batteries, pump

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controller, pressure switch, tank, and DC water pump. The electric current produced

by PV panels during daylight hours charges the batteries, and the batteries in turn

supply power to the pump anytime water is needed. The use of batteries spreads the

pumping over a longer period of time by providing a steady operating voltage to the

DC motor of the pump. Thus, during the night and low light periods, the system can

still deliver a constant source of water.

The figure below shows the direct-coupled pumping system, electricity from the

PV modules is sent directly to the pump, which in turn pumps water through a pipe to

where it is needed. This system is designed to pump water only during the day. The

amount of water pumped is totally dependent on the amount of sunlight hitting the PV

panels and the type of pump. Because the intensity of the sun and the angle at which it

strikes the PV panel changes throughout the day, the amount of water pumped by this

system also changes throughout the day.

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 The output of a solar pumping system is very dependent on good system design

derived from accurate site and demand data. It is therefore essential that accurate

assumptions are made regarding water demand/pattern of use and water availability

including well yield and expected drawdown (Aligah, 2011).

Water pumping has long been the most reliable and economic application of

solar-electric (photovoltaic, or PV) systems. Most PV pumping systems do not use

batteries – the PV modules power the pump directly. Without batteries, the PV pumping

system is very simple. It consists of just three components: the solar array, a pump

controller and the pump. The only moving part is the pump (Aligah, 2011).

The volume of water pumped by a solar-powered system in a given interval

depends on the total amount of solar energy available in that time period (Kovach,

2010). Specifically, the flow rate of the water pumped is determined by both the

intensity of the solar energy available and the size of PV array used to convert that solar

energy into direct current (DC) electricity (Kovach,2010).

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 STATUS OF SOLAR POWERED PUMPS IN THE PHILIPPINES

As of now, there are many universities, farmers, Business affiliated persons and

home owners were using and practicing solar PV pumping system. So far the

application of solar pump system in the Philippines is used for irrigation, pond

management, livestock watering and drinking water supply. The Philippine government

and other companies are supporting the Filipinos in introducing and giving some solar

powered pump equipment for a particular purpose. Like the other Asian country, the

demand for PV solar power system is continuously increasing.

In June 2003, The Department of Science and Technology's Philippine Council

for Industry and Energy Research and Development installed a solar-powered water

pump at Pangasinan State University in Asingan town to irrigate a 1.5-hectare rice

farm. The solar powered water pump unit donated to the government by World Water,

Inc. is equipped with a device that directly converts solar intensity into electricity. The

electrical output energizes a pumping system such as centrifugal or submersible pump

to draw water from underground source. PCIERD pumped P310 thousand in grant to

the project, which would evaluate and monitor the performance of the equipment for

agricultural crop irrigation.

Sustainable Solar Powered Municipal Water Supply Project in Ronda,

Philippines completed in 2002, this project continues to supply clean drinking water

supply to 200 households with household incomes of one to two dollars per day, in the

municipality of Ronda in the Province of Cebu, Philippines using solar power as the

only source of energy. This project developed and implemented by World Water (a

19
publicly held company in the United States) was based on social, financial and

technical sustainability. This project delivery model has been adopted as best practices

by many international organizations including the World Bank.The project, designed

with extensive community preparation and participation (particularly women) delivers

water for a fee.

DESIGN PROCESS OF PV-POWERED WATER PUMP SYSTEM by Nicholle

Kovach

The twelve steps below can be used in the design process for a PV-powered

water pump system. The following steps will be a big help to ensure that the system

functions properly.

Step 1 – Water Requirement

The first step in designing a solar-powered water pump system is to determine

the overall water requirement for the operation. This can be done in part by using the

average water requirement values for various crops and livestock. Local conditions

should be taken into consideration.

Step 2 – Water Source

The configuration of the water system will be defined primarily by the type of

water source used, as well as by the local topography and the location(s) of the delivery

point(s). The water source may be either subsurface (a well) or surface (a pond, stream,

or spring). If the water source is a well, the following items will need to be determined:

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• The static water level,

• The pumping rate and associated drawdown (along with any seasonal variation),
and

• The water quality.

For surface water sources, such as a stream, pond, or spring, the following need

to be determined, taking seasonal variations into account:

• The water availability,

• The pumping levels, and

• The water quality, including the presence of silt and organic debris.

Step 3 – System Layout

The third step in the system development process is to determine the layout of

the entire system, including the locations and elevations of the following components:

• Water source

• Pump

• PV panels

• Storage tanks

• Pipeline routes

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Step 4 – Water Storage

A water stored tank is normally viable solar-powered pump. System. A tank can

be used to store enough water during peak energy production to meet water needs in the

event of cloudy weather or maintenance issues with the power system. Ideally, the tank

should be sized to store at least a three-day water supply. Multiple tanks may be

required if a very large volume of water is to be stored.

Step 5 – PV Panel Location

In order to maximize the solar-powered system’s energy production, the panels

should be south facing with no significant shading in their vicinity in order to achieve

full sun exposure. However, partial shading (e.g., shadows from tall trees) in the

distance during the early morning or late afternoon may be unavoidable. The effects of

any shading present should be considered when determining the amount of available

solar energy. Also consider the potential effects that the slope and aspect of future

shading due to continued tree growth may have.

The solar array should be placed as close to the pump as possible to minimize

the electric wire length (and thus any energy loss), as well as installation costs.

Step 6 – Design Flow Rate for the Pump

The design flow rate for the pump is calculated by dividing the daily water

needs of the operation by the number of peak sun hours per day.

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Step 7 – Total Dynamic Head (TDH) for the Pump

The TDH for a pump is the sum of the vertical lift, pressure head, and friction

loss. Friction losses apply only to the piping and appurtenances between the point of

intake (inlet) and the point of storage (i.e. the storage tank or pressure tank). Flow from

the storage tank to the point of use (i.e. the trough) is typically gravity fed. Therefore,

friction losses between the storage tank and the point of use are independent from the

pump and do not need to be accounted for when sizing the pump.

Step 8 – Pump Selection and Associated Power Requirement

The pump should be selected using pump performance curves to ensure that the

pump can deliver the required flow (Step 6) against the known TDH (Step 7). The peak

power requirement for the pump can be determined from these curves for a given

flowrate and TDH (pumping head) to help make the appropriate pump selection, as well

as the appropriate PV panel selection (Step 9).

Step 9 – PV Panel Selection and Array Layout

Once the peak power requirement (Step 8) for the selected pump is known, this

value can be used to select the solar panel or array of panels required to supply that

power.

When multiple panels are required, they must be wired in series, parallel, or a

combination of series-parallel to meet both the voltage and amperage requirements of

the pump. The power output of the individual panels can be added together to determine

the total power they produce.

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Step 10 – PV Array Mounting and Foundation Requirements

Standard details for a PV panel embedded post mount that meets the design criteria.

Designs that exceed the criteria must be constructed by a qualified engineer.

Hardware for mounting panels to a post is normally provided by the supplier. If

no supplier mount is provided, contact a qualified engineer for design details. Also note

that all panel mount hardware must meet Oregon Construction Specification 68

requirements.

If a panel or array of panels is to be mounted on an existing structure, that

structure must first be analyzed to ensure that it has the structural integrity necessary to

withstand all local wind once the panel(s) are mounted.

Step 11 – Water Flow Rates and Delivery Point Pressure

The entire system, including the PV panels, pump, pipe, and any storage tanks,

must be analyzed to ensure that the design flow rates can be delivered to the delivery

point(s) at the required pressure(s) in order to properly operate the valves (e.g., a float

valve).

Step 12 – Summary Description of the System

The designer should provide a descriptive summary of the completed system to

the landowner/contractor that includes the following information:

• All system components and their specifications.

• System operating characteristics, such as required voltages, amperages,

wattages, etc.

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  Special considerations required in the system design, including environmental
factors.

REFERENCES

http://jjmie.hu.edu.jo/files/v5n3/JJMIE%20252-09.pdf

http://www.nrcs.usda.gov/Internet/FSE_DOCUMENTS/nrcs142p2_046471.pdf

http://sntpost.stii.dost.gov.ph/frames/AprtoJun03/pg18b.htm

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 NET METERING OF SOLAR POWER SYSTEM

Net-Metering, as defined under R.A. 9513 or the Renewable Energy Act of

2008, refers to a system, appropriate for Distributed Generation, in which a distribution

grid user has a twoway connection to the grid and is only charged for his net electricity

consumption and is credited for any overall contribution to the electricity grid.

Distributed Generation refers to a system of small generation entities supplying directly

to the distribution grid, any one of which shall not exceed 100 kilowatts in capacity.

In the Philippines, the solar radiation across the country has a power generation

potential of 4.5 to 5.5 kWh per square meter per day. With this, every on-grid

household and commercial establishments can utilize the power of the sun with solar

panels on their own roofs. This paves way to the introduction of the Net-Metering

scheme. The scheme represents the first step of a paradigm shift from the traditional

generation-transmission-distribution scheme towards individual and community based

distributed on-site power generation.

The 100-kW peak is the legal cut-off between what is allowed as Net-Metering and

what is then allowed as Feed-in-Tariff (FIT). Installing solar photovoltaic (PV) panels

up to 100 kW falls under Net-Metering regulations. If an installation is over 100 kW,

the household and commercial establishments is eligible for the FIT, but will only

export to the grid and cannot consume what they produce.

The figure below illustrates the flow of electricity from power generation via

high voltage transmission and distribution utilities to the end-user who can now install a

renewable energy facility and send not needed electricity back into the distribution grid

26
and earn credit for this export. Based on available roof area solar PV panels is installed

on the roof of the building.

The output of the panels is connected to the inverter which converts DC to AC.

The inverter output is connected to the control panel or distribution board of the

building to utilise the power. The inverter synchronises with grid and also with any

backup power source to produce smooth power to power the loads with preference of

consuming solar power first. If the solar power is more than the load requirement, the

excess power is automatically fed to the grid.

CURRENT TRENDS, MILESTONE AND STATUS

Over the past 30 years, the cost of solar power systems has significantly gone

down. In 2011, the price of solar panels fell 48.4 per cent. According to Bloomberg

New Energy Finance, the price of solar panels is seen declining by 55 per cent by 2020.

Based on trends, prices of PV panels drop by as much as 22 per cent every time the

27
cumulative installed capacity doubles. PV system costs have dropped by more than 30

per cent since 2008. In some countries, it was noted that the costs of solar PV systems

have fallen by as much as 75 per cent in the last three years. The development of solar

PV system in the Philippines was achieved in July 2013 when the net metering rules

and interconnection standards where released by the Energy Regulatory

Commission and went into effect on July 25. Its significance does not only lay

in the fact that it is the first mechanism prescribed in the Renewable Energy Law of

2008 which is fully implemented but also in the fact that it legalizes and thereby opens

up the whole market of solar roof tops below 100KW in on grid areas for the country.

In 2013, the solar roof top market in the Philippines is expected to double in size from

2.5MW to 5MW. The passing of the net-metering rules and interconnection standards

enabling all on-grid end-users to install a solar roof top will further boost the market as

now the regulatory framework has been set.

GENERAL DESIGN AND CONSIDERATIONS

Net-Metering Arrangements

The Distribution Utilities (DUs), upon request of distribution end-users, shall

enter into Net-Metering Agreements with Qualified End-users (QEs) installing an

Renewable Energy system within their premises. The DU or QE shall furnish executed

net-metering agreements to Energy Regulatory Commission (ERC), Department of

Energy (DOE) and National Renewable Energy Board (NREB). The Proposal is for net-

metering agreements be deemed approved upon submission to ERC.

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 Inter-Connection Set-up

The figure below shows the inter-connection set-up of net metering system. Two

uni-directional meters will be installed; an Import Meter and an Export Meter. The

import meter reads Qulaified Enduser’s (QE’s) consumption imported from

Distribution Utilities (DU) grid, and the Export Meter reads excess solar energy

exported to DU grid. The Distribution Utilities (DU) may opt to install a single bi-

directional meter that can meter both import and export energy. The third meter will be

installed in proximity to RE source to meter total RE generation for Renewable

Portfolio Standard (RPS) compliance.

Inter-Connection Set-up

Incremental Charges

The DUs to charge incremental supply & metering charges equivalent to 10% of

their existing supply & metering rates plus PhP0.01/kWh to all customers who avail of
29
the NetMetering program. The DUs may apply for new supply & metering charges.

Meantime, incremental supply & metering charges shall be effective until a new supply

& metering charges are approved by ERC.

Pricing Methodology

The Energy Regulatory Commission (ERC) in consultation with National

Renewable Energy Board (NREB) and electric power industry participants, shall

establish pricing methodology applicable to net-metering in another set of rules.

Meantime, DU’s blended generation charge, including any and all adjustments thereon,

appearing in the QE's electric bill shall be used as the interim price

Billing Charges

To be deducted from QE’s electric bill: Peso amount credited for exported

energy from last month. Balance of negative peso amount credited from prior month/s.

If net peso amount is positive, QE pays DU. If net peso amount is negative, DU rolls-

over negative amount to QE's electric bill in the immediately succeeding billing period.

Cost Recovery for DUs

Cost of solar power supply procured under net-metering agreements shall be

recovered by DUs from all customers under the Automatic Generation Rate

Adjustment.

Billing Format & Simulation

Sample Billing Format & Simulation for 2kW solar-powered facility installed on roof top

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31
32
 ROI Calculation

The example below shows a sample ROI calculation of a solar roof top in the

Philippines. 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.

No Assumptions

1 Life time of PV Years 20

2 Rated Capacity of PV System (RC) KWp 6
Module Efficiency (ME) % 16%
Hours/Year Hours 8,760
3 Yield (RC * ME * hours/year) kwh/year 8,410
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 4 Degradation Factor % 0.5%
5 % Own Consumption % 70%
6 DU Total Customer Charge PHP/kWh 12.5718
7 Annual Increase in DU/Generation Charge % 3%
8 % Net Export % 30%
9 DU Generation Charge PHP/kWh 5.4951

10 Operations and Maintenance/Year/KWp PHP 900

Cost of installed PV System PHP/kWp 120,000
11 Cost of installed PV System total PHP 720,000
Key Performance Indicators
Total Solar Energy Produced kwh 160,438
Total Cost PHP 828,000
Total Savings PHP 2,133,227
Break Even Year 8
Internal Rate of Return % 12%

REFERENCES
Republic act 9513: Renewable Energy Act of 2008. An Act promoting the
Development,
Utilization and commercialization of Renewable Energy Resources and for other
Purposes
Department of Energy Circular no. DC2009-05-0008, Rules and Regulations

Implementing Republic Act 9513

Energy Regulatory commission, Resolution No. 09, Series of 2013, A Resolution

Adopting the Rules Enabling the Net-Metering Program for Renewable Energy

Annex A-1 Net Metering Interconnection Standards

Net-Metering Reference Guide, How to avail Solar Rooftops and other Renewables
100kW in the Philippines, Publication of the DOE in cooperation with NREB and

supported by the Federal Ministry of Economics and Technology

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