Income Tax Credit %
- Source
- BIR Revenue Regulations
- Retrieved
- Notes
- No federal income tax credit for residential solar; check local LGU incentives
Incentive Table
5 key incentives per country — each with value, status, official source, and retrieval date
| Incentive Type | Value | Status | Source | Retrieved |
|---|---|---|---|---|
| Income Tax Credit % | 0% | No national income tax credit | BIR Revenue Regulations | As of 2024-11-15 |
| Feed-in Tariff | Not available | FIT program closed to new applicants | ERC Resolution No. 16, Series of 2023 | As of 2024-11-15 |
| Net Metering | Available | Active — Net Metering Rules | ERC Resolution No. 10, Series of 2023 (Net Metering Rules) | As of 2024-11-15 |
| VAT Exemption | Available | VAT-exempt per CREATE Law | Republic Act No. 11534 (CREATE Law), Sec. 109 | As of 2024-11-15 |
| Typical Payback | 5.2 years | Typical 5–7 years | DOE Philippine Energy Plan 2023–2050 | As of 2024-11-15 |
Notes & Caveats
- No federal income tax credit for residential solar; check local LGU incentives
- FIT rates ended 2022; net metering is primary export mechanism
- Up to 100kW; 1:1 credit for exports; applies to residential & commercial
- Solar equipment importation & sale VAT-zero-rated
- Based on 5kW residential, ₱11/kWh blended rate, 40% self-consumption
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₱
₱ /kWh
₱ /kWh
Net metering active — export credited at retail rate
Payback Period
0.0 years
Effective cost: ₱550,000 ÷ Annual savings: ₱71,500/yr
Annual Savings
₱71,500 /yr
Self: ₱28,600 · Export: ₱42,900
25-Year Net Value
₱969,375
After 25 years @ 0.5%/yr degradation
Assumptions
0.5%/yr panel degradation • Inverter replacement year 12 • No financing costs • Export rate = FIT (if no net metering) or retail rate (net metering)
| Parameter | Value |
|---|---|
| Panel degradation | 0.5% per year |
| Inverter replacement | Year 12 (cost ~15% of system) |
| Discount rate | 0% (nominal values shown) |
| Export rate logic | FIT if FIT>0 AND no net metering, else retail rate |
| Tax credit applied | Upfront reduction on system cost |
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Data sources & methodology
Every number traced to an official document. Retrieved dates shown so you know freshness.
Income Tax Credit %
Feed-in Tariff
Net Metering
VAT Exemption
Typical Payback
Payback Formula
Effective_Cost = System_Cost × (1 - Tax_Credit% / 100)
Annual_Savings = Annual_Production × [
(Self_Consumption% / 100) × Retail_Rate +
(1 - Self_Consumption% / 100) × Export_Rate
]
Export_Rate = FIT (if FIT > 0 AND no Net Metering)
else Retail_Rate (if Net Metering active)
else Retail_Rate (fallback)
Payback_Years = Effective_Cost / Annual_Savings
25-Year_Net = Σ(Annual_Savings × (1 - 0.005)^year) - System_Cost - Inverter_Cost
⚠ Not financial or legal advice. Policies change. Confirm with local authority before signing. Data retrieved 2024–2025; may not reflect latest amendments.