Efforts to Encourage the Effectiveness of Rooftop Solar Quota Fulfillment

press release

Jakarta, June 7, 2024– The Ministry of Energy and Mineral Resources (MEMR) has issued the PLN Rooftop Solar PV System Development Quota for 2024-2028 through Decree of the Director General of Electricity Number 279. K/TL.03/DJL.2/2024. The distribution of rooftop Solar PV quotas is based on the electricity system. The total rooftop solar PV quota in eleven power systems for 2024-2028 is 5,746 MW with a quota of 901 MW in 2024, 1,004 MW in 2025, 1,065 MW in 2026, 1,183 MW in 2027, and 1,593 MW in 2028. 

The Institute for Essential Services Reform (IESR) appreciates the Ministry of Energy and Mineral Resources for setting the rooftop solar PV quota for PLN, which consumers and rooftop solar businesses have awaited. However, IESR emphasizes that the quota distribution has not been carried out according to the clustering/subsystems outlined in article 9, paragraph 3 of Permen ESDM No. 2/2024. It’s important to note that as per the Permen, the clustering responsibility lies with the Electricity Power Holder Business License (IUPTLU) holder.

Fabby Tumiwa, Executive Director of IESR, stated that allocating rooftop solar PV quotas at the power system subsystem cluster level would offer clarity for consumers and ensure investment certainty for rooftop solar PV businesses. Without a net-metering mechanism, rooftop solar PV installations will primarily serve commercial and industrial (C&I) customers.

“The subdivision per subsystem offers clearer information for consumers regarding their options to apply for rooftop PV installation. Therefore, the Director General of Electricity needs to ensure that PT PLN submits the subdivision per cluster before July when the application period begins,” Fabby said. 

IESR encourages the Ministry of Energy and Mineral Resources to actively socialize the MEMR Regulation on rooftop solar PV and distribute rooftop solar power plant quotas and their mechanisms to consumers. The government should also proactively remind other IUPTLU holders to submit capacity quotas before July immediately. The newly issued rooftop PLTS quota for PLN is still not in line with the National Strategic Program target of 3.6 GW of rooftop PLTS set in 2021 by the Coordinating Minister for Economic Affairs Regulation No. 7/2021. 

The government also needs to consider customer interest in rooftop PV adoption to increase the rooftop PV quota in 2025 and achieve the renewable energy mix target of 23 percent.

“Industrial customers’ interest in using rooftop solar PV is high and is aimed at reducing energy costs and ensuring sustainable manufacturing processes, so eliminating net-metering does not have much impact on their interest. What also needs to be explained is the procedure in case of oversubscription (demand exceeding the set quota) in a particular system cluster. Interest from residential customers may drop due to the changing economics. Still, with more widespread information and the desire to save electricity costs, usage demand may also grow,” said Marlistya Citraningrum, Program Manager for Sustainable Energy Access, IESR.

Marlistya mentioned establishing rooftop solar PV quotas may represent an opportunity for financial institutions to provide appealing financing schemes. Previously, the market niche may have been less conspicuous due to the absence of quotas. However, financial institutions now possess additional information to conduct a comprehensive assessment, enabling them to introduce green financing products.