The Energy Regulatory Commission (ERC) has approved a new feed-in tariff (FIT) rate of P6.9282 per kilowatt-hour (kWh) for the fourth round (FIT4) of run-of-river (ROR) hydropower projects, valid until the end of December 2026.
It is intended to accelerate investments and growth in renewable energy (RE) and applies to an additional 100-megawatt (MW) installation target for ROR hydro, following the full subscription of the previous 250 MW target, which included 31 projects totaling 256.878 MW as of Oct. 31, 2025, according to Department of Energy (DOE) data.
The rate would be degressed by 0.5 percent annually until the 100 MW target is fully subscribed.
The approval of the FIT4 rate is part of the country’s strategy to achieve an energy mix of 35 percent RE by 2030, said ERC chairperson Francis Saturnino Juan.
The ERC adopted the rate after receiving requests from Philhydro Association Inc. and the DOE in 2025 for the immediate determination of the FIT4 rate. It initiated the review in October 2025 by posting a preliminary rate for comments, consistent with the FIT rules that allow for review when installation targets are met or unmet or when significant cost changes arise. Public consultations were held on Nov. 6 and 7, 2025.
In a separate move, the ERC also approved long-pending adjustments to the FIT covering 2021 to 2025 for existing RE plants, with recovery directed over a five-year period starting in calendar year 2026.
These FIT adjustments are mandated by the FIT System Rules to incentivize the RE sector. For biomass, the rate for 2014–2015 entrants is adjusted to P7.0655/kWh in 2021, P6.9609 in 2022, P7.3298 in 2023, P7.9363 in 2024 and P8.1259 in 2025.
For run-of-river hydro, the rate for 2014–2015 entrants is set at P6.1747 in 2021, P6.1404 in 2022, P6.4514 in 2023, P6.9714 in 2024 and P7.1626 in 2025.
For solar, the rate for 2014 plants adjusts to P10.5513 in 2021, P10.2758 in 2022, P10.8507 in 2023, P11.7776 in 2024 and P12.0074 in 2025. For wind, the rate for 2014 plants adjusts to P9.1940 in 2021, P9.0053 in 2022, P9.4960 in 2023, P10.2946 in 2024 and P10.5178 in 2025.
“The approval marks the first adjustment to the FIT scheme since 2020. It underscores our commitment to uphold and ensure the success of the FIT System as enshrined in the RE Act,” said Juan.
