Indonesia unveils revised rooftop solar regulations

The Ministry of Energy and Mineral Resources has issued a revised set of regulations, replacing the previous ones concerning Rooftop Solar Power Plants (PLTS). The newly signed Ministerial Regulation (Permen) Number 2 of 2024 aims to address electricity buying and selling schemes for Rooftop PLTS, introducing incentives while disallowing users to engage in such transactions. Despite this restriction, the government plans to offer incentives to boost Rooftop PLTS installations, as mentioned in Article 13 of the regulation.

The revised regulation highlights that excess electrical energy from rooftop PLTS systems entering the network of the Electric Power Network Holders of Business Permits for Providing Electricity for Public Use (IUPTLU) will not be factored into electricity bills for rooftop PLTS customers. The incentives include exemptions from charges, docking fees, and other benefits.

Article 47 ensures that operational rooftop PLTS systems connected to the IUPTLU holder’s network can continue electricity exports and imports for ten years after obtaining approval. Additionally, for Rooftop PLTS customers with IUPTLU approval yet to operate, the existing calculation mechanisms and capacity fee provisions will remain valid for a decade post-approval.

The revised regulation also introduces a quota system (Article 7-11) for Rooftop PLTS development, considering the national energy policy, business plans for providing electricity, and the reliability of the electric power system. Quota proposals will be evaluated and determined by the Director General of Electricity after submission by the IUPTLU holder.

While acknowledging potential challenges for households due to peak electricity loads at night, the government encourages Rooftop PLTS use in industries. The focus on stable industrial electricity consumption aligns with the government’s target of installing 3.6 GW of Rooftop PLTS by 2025.