17 October 2025
Solar rebates and tax credits, and what a household actually gets
The honest answer is smaller than the question
This page used to describe how to apply for a household solar rebate, step by step. There is no such thing to apply for, so on 24 September 2026 it was rewritten to say what there actually is. The incentives in the Renewable Energy Act are real, they are substantial, and almost none of them is addressed to somebody putting panels on their own roof.
That is worth knowing before you budget, because a discount you have been promised and do not get is the difference between a job going ahead and a job stalling.
What the law gives, and who it gives it to
Republic Act 9513, the Renewable Energy Act of 2008, sets out its incentives in Chapter VII. Section 15(g) is the value-added tax one, and it does two things. It zero-rates the sale of power generated from renewable sources. And it entitles RE Developers to zero-rated VAT on their purchases of goods and services needed to develop, construct and install their plant facilities.
Read that second sentence again with your own roof in mind. The relief attaches to an RE Developer building a plant. A household buying a rooftop system from a VAT-registered installer is neither of those things, and the installer charges VAT.
The Department of Energy was asked exactly this
In September 2022 somebody filed a Freedom of Information request asking whether VAT is passed to household consumers when a VAT-registered company installs solar on a residential house, and whether it is zero-rated. The Department of Energy answered on 10 October 2022, tracking number DOE-717074777888.
It quoted Section 15(g) in full, the developer wording included, and then recommended coordinating directly with the Bureau of Internal Revenue. It did not say households are zero-rated.
And it is still being asked for, which settles it
Two independent sources describe household VAT relief as a thing campaigners want rather than a thing that exists. In May 2026 the Manila Bulletin reported a solar group pushing for a VAT-exempt regime to make rooftop systems more affordable for homeowners. In July 2026 the Sayang Ang Araw campaign put out a statement saying households, small businesses, schools and non-VAT-registered consumers continue to shoulder the full VAT cost of installing rooftop solar.
Nobody campaigns for something they already have.
What a household does get
Net metering, which is the real one. Under the same act, a system up to 100 kW can export what you do not use and take the credit off your bill. It is not a discount on the installation, it is a reduction in what you pay afterwards, every month, for as long as the system runs.
And since August 2026 the paperwork for own-use solar got considerably lighter, which is a saving in time and filing fees rather than in tax. A micro-solar system now needs neither a building permit nor a certificate of compliance.
What to do instead of applying for a rebate
Work out the size of system your own bill justifies, settle whether you want to export or not, and get the paperwork right for whichever utility bills you. Those three decide what a solar installation costs you and what it returns, and all three are things you can actually act on.
If a VAT exemption for households does arrive, it will be national news and this page will say so.