Getting a good RAP
Solar-powered generators and chargers are expensive even in Raon, but still, people continue to avidly discuss how and where they can find them. When the government announced early on in the crisis that it was considering increasing coal imports for electric plants, it also said it would continue to expand renewable energy sources. As of 2025, renewable energy already accounts for approximately 25 percent of the Philippines’ total power generation mix. It made me wonder who, in particular, gets to benefit from this.
Over Holy Week, I was surprised to hear that the cost of electricity is lowest from 6 a.m. to 3 p.m. because it’s when renewable energy is at its cheapest—it’s peak solar time. The person telling me about this only half-jokingly suggested office hours should shift accordingly, since many commercial establishments (or buildings in which people work) are already members of the Retail Aggregation Program (RAP). It’s a scheme of the Energy Regulatory Commission (ERC) that allows smaller electricity users to pool their demand and enter the Competitive Retail Electricity Market under Retail Competition and Open Access—and yes, whenever the government is involved, an epidemic of acronyms occurs.
Normally reserved for large “contestable customers,” the program lets groups of end users in the same distribution utility (DU) franchise area—such as Meralco’s—aggregate their loads to qualify collectively. This unlocks the ability to choose a Retail Electricity Supplier (RES) for more competitive generation rates.
It works like this. Groups combine their average monthly peak demand. The threshold, originally 500 kilowatt (kW), was lowered by the ERC to 100 kW effective June 26, 2026. After groups register with the ERC and Independent Electricity Market Operator of the Philippines, often through a lead or licensed RES, they sign a Power Supply Agreement. Distribution remains with the local DU, but supply shifts to the chosen RES. Participants can switch suppliers later—the suppliers often end up bidding for contracts.
Benefits include lower, more predictable electricity costs, especially on the volatile generation charge—plus options for renewable energy. For example, you can negotiate a Power Supply Agreement with a licensed RES that specifically offers 100 percent renewable energy. The rate is lower and may be less susceptible to fluctuations because of outside factors like the price of oil. So if you are supplied with 100 percent renewably sourced power, the 6 a.m. to 3 p.m. workday makes sense for you!
As of late 2025, there were 37 Retail Aggregated Groups with nearly 31 megawatts combined demand. Early participants include banks (e.g., BPI), schools, water utilities, industrial parks, and telecom sites. Most recently, 60 Starbucks cafes signed on for tidy savings. But it’s not just businesses and institutions that benefit from the program.
Meralco and the ERC explicitly list subdivisions and villages as ideal participants for RAP, alongside condominiums. The program is designed for residential groups in contiguous areas within the same distribution utility franchise area (e.g., all under Meralco). Condominiums can join by aggregating common-area loads (lobbies, elevators, lighting, pumps). Individual units typically stay on DU rates.
DMCI Homes pioneered the sector. In 2025, it partnered with MPower (Meralco’s RES) to aggregate common areas of two condominiums: Rosewood Pointe in Taguig and Tivoli Garden Residences in Mandaluyong. Other DMCI projects signed on, affecting over 25,000 residents with better pricing.
No official tally exists for other condominiums, as residential adoption lags behind commercial and industrial sectors. The new 100 kW threshold is expected to spur more condo associations and property managers to explore RAP for shared costs. If the rough estimates are right, that up to 25 to 30 percent of national electric consumption is for residential use, and of that, 20 to 35 percent is for gated communities, condominiums, etc., then this program is significant, both for big business and the middle and upper classes.
Still left out, however, are small businesses and people who cannot organize and aggregate their demand to benefit from the government’s RAP. Some years back, a lot of noise was made about a firm that was pioneering the installation of solar panels on the roofs of private homes and small buildings. I asked Grok about this, and it said: “The company you’re referring to is Solar Philippines, founded by Leandro ‘Levi‘ Leviste (Batangas 1st District representative, son of Sen. Loren Legarda).
“In short, the high-profile promise of widespread solar panel installations on private homes largely fizzled out. The company pivoted to big-ticket projects that mostly stalled, leading to massive contract cancellations and penalties. No major successful nationwide residential solar rollout materialized under the original vision.
“The episode has become one of the biggest cautionary tales in the Philippines’ renewable energy sector in recent years. If you’re considering residential solar today, established players with proven track records (and without this baggage) would be safer options.”
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Email: mlquezon3@gmail.com; Twitter: @mlq3
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