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Rooftop Solar Power Plants Policy in Indonesia Gets Presidential Approval in Early 2024

In a significant move at the beginning of 2024, President Joko Widodo of Indonesia has given the green light to revise the Ministerial Regulation (Permen) ESDM Number 26 of 2021 concerning Rooftop Solar Power Plants (PLTS) Connected to the Electricity Network for License Holders of Electricity Supply for Public Interest.

The sight of solar panels adorning rooftops in the capital city has become increasingly common. Tall skyscrapers are now equipped with photovoltaic modules on their rooftops, providing electricity to the floors below. This initiative, known as Rooftop Solar Power Plants (PLTS) Atap, is aimed at harnessing solar energy efficiently.

The decision to revise the policy comes amidst growing interest from both industries and communities in installing solar panels. President Widodo’s approval marks a crucial step in addressing this demand.

According to Andriah Feby Misna, Director of New Renewable Energy at the Ministry of Energy and Mineral Resources (ESDM), the revised regulation has entered the legislative process and received endorsement from Minister Arifin Tasrif.

Feby explains, “President Jokowi has approved it, Minister has signed it, now it’s just the legislative process.”

The revision of Ministerial Regulation ESDM Number 26/2021 on Rooftop Solar Power Plants Connected to the Electricity Network for License Holders of IUPTL for Public Interest is expected to strike a balance between various interests, including those of state-owned utility PLN and stakeholders in the solar industry.

The policy revision has encountered hurdles in the past due to concerns about the state budget and issues related to electricity oversupply. However, recent discussions between ministries and agencies have resulted in consensus on the provisions outlined in the revised policy.

Some important points in the policy, as summarized from various sources, include:

Export-Import Rules for Solar Rooftop Power Plants

The revised regulation eliminates the export-import of electricity between the public and PT PLN (Persero). This means that electricity generated by rooftop solar power plants can only be used by the installing public.

Feby emphasizes that excess electricity generated by rooftop solar power plants cannot be sent to the PLN system for compensation.

“Consumers install rooftop solar power plants according to their needs. Later, the quota issued by PLN will be adjusted by the Directorate General of Electricity ESDM and reviewed by the Directorate General of EBTKE,” she explains.

The policy aims to address PLN’s current oversupply situation, particularly in the Java region, by encouraging self-consumption of solar energy.

BPP Regulations

The revised regulation also addresses the issue of Basic Cost of Electricity Production (BPP) from PT PLN (Persero). Any increase in BPP will be borne by the state in accordance with regulations.

Feby confirms, “It is stated in the regulation that if there is an increase in BPP from PLN, it will be charged to the state.”

Discussions between the Ministry of Finance and the Ministry of ESDM have resolved concerns about subsidy burdens related to the revised regulations.

Understanding Rooftop Solar Power Plants

Rooftop Solar Power Plants utilize existing space on building roofs, optimizing areas that are usually not utilized. They integrate solar panels into the roof, allowing for efficient use of limited land.

These systems reduce dependence on the public electricity grid, minimizing distribution costs and energy losses. They also provide energy independence to users, allowing buildings or homes to generate their own power.

Through the use of Rooftop Solar Power Plants, users can significantly reduce their monthly electricity bills. They contribute to reducing greenhouse gas emissions and addressing climate change.

However, challenges remain, including limited capacity due to roof size and potential impacts on building structures. Despite these limitations, Rooftop Solar Power Plants offer a promising solution for sustainable energy generation in Indonesia.