CEBU City Councilor Nestor Archival has called on the Department of Energy (DOE) to institutionalize the “net-metering system” so people will be encouraged to help prevent the construction of more coal-fired power plants.
Archival said he invested P800,000 for the installation of solar panels in his house arranged by Visayan Electric Co. (Veco) under the net metering system.
As the result, while he consumes 196 kilowatt hours (kwh) from Veco, he also generates 160 kwh from his solar power.
Although Archival is campaigning for solar power in every building and house, he also urged the government to adopt a “deduction” system where Veco must deduct first the power generated by a household and then bill the excess kwh used.
He cited as example the 160 kwh he generates, which must be deducted from the 196 kwh he consumed from Veco before being billed for the difference of 36 kwh.
But Archival said Veco imposes a different structure.
He said Veco charges him P11 per kwh for the 196 kwh he consumed, and bought his 160 kwh at P5 plus per kwh.
“It should be 196 kwh minus 160 kwh and I will pay Veco the difference of 36 kwh,” Archival said.
He said the deduction system of net metering is ideal and should be institutionalized by the government.
Despite the scheme imposed by Veco, Archival said the people’s participation in net metering can provide them income and can help the government in stabilizing power supply.
For example, he said that if a household will invest in solar, it may earn P200 a day and the investment can be recovered in six years. So, if a household invests now, it can have permanent profit from solar after six years.
Solar power
When sought to comment, Director Mario Marasigan of the DOE Renewable Energey Management Bureau said the households are allowed to generate solar power for their own consumption only.
Marasigan said the buying rate of P5 plus for every kwh hour was set by the Energy Regulatory Commission (ERC).
Veco Chief Operating Officer Sebastian Lacson said that had it not been for his own solar power, Archival’s consumption could have reached 300 kwh.
Extra income
Lacson said that with solar, Archival was able to reduce his power consumption and at the same time earn extra income.
“Any kwh he sells to Veco is sold at Veco generation cost, which is right now around P5.30 per kwh. When he does not consume from Veco, then he saves P11 per kwh. You can see from this that net metering was meant for own use primarily. The regulation as it is makes economic sense,” Lacson said.
Lacson said a bank is willing to provide loans for families who want to adopt and own solar systems with the solar panels as collateral.