21/10/2025
ERC Sets 2025 FIT-All Rate to Support Renewable Energy
21 October 2025
PASIG CITY — To ensure continued support for renewable energy (RE) projects under Feed-in Tariff Program established pursuant to the Renewable Energy Act of 2008, the Energy Regulatory Commission (ERC) has approved a new rate for the Feed-in Tariff Allowance (FIT-All) for 2025. The new rate is Php 0.2073 per kilowatt-hour (kWh), effective in November 2025 electricity bills.
The FIT-All is a small charge on every electricity consumer’s bill. Think of it as a collective fund that pays FIT-eligible renewable energy (RE) producers—for power from sources like wind, solar, and small hydro plants—a fixed, guaranteed price for their energy. This system encourages more investment in clean energy, which helps stabilize our power supply, lessen dependence on imported energy sources, and protect the environment.
The ERC conducted public hearings across the country and carefully reviewed the application from the National Transmission Corporation (TransCo), which manages the FIT-All fund. The approved rate is a balance: it ensures there is enough money to pay RE producers on time, while also minimizing the additional cost passed on to consumers in the form of interest payments to these RE producers.
This new rate covers outstanding payments and maintains a small buffer fund to prevent delays in future payments to RE producers. It considers the required funds to settle a Php19.06-billion FIT differential and build a Php3.74-billion working capital allowance, which serves as buffer to guarantee timely payments to the RE producers. As of 05 September 2025, TransCo reported that 97.6% of FIT obligations were paid, amounting to Php215.27 billion, with only a small portion outstanding.
To guarantee that the FIT-All fund is managed properly, the ERC has ordered an immediate audit. All parties involved, including grid operators and power distributors, have been directed to make their records available for this review.
“This decision is a careful balance. It secures the growth of renewable energy that our country needs, while keeping electricity rates affordable for every Filipino household and business,” said ERC Chairperson and CEO Francis Saturnino C. Juan. “This move reflects the ERC’s dual commitment to protecting consumer interests and advancing the Philippines’ sustainable energy future,” he added.
