Indonesia’s MEMR Issues PLN Rooftop Solar PV Quotas For 2024-2028, IESR Raises Concerns

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Representational image. Credit: Canva

The Ministry of Energy and Mineral Resources (MEMR) has announced the allocation of PLN Rooftop Solar PV quotas for the period of 2024-2028, outlined in Decree of the Director General of Electricity Number 279. K/TL.03/DJL.2/2024. The quotas, distributed across eleven power systems, total 5,746 MW over the five-year period, with individual allocations 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.

While the announcement has been welcomed by stakeholders, the Institute for Essential Services Reform (IESR) has raised concerns regarding the distribution methodology and the absence of net-metering mechanisms. Fabby Tumiwa, Executive Director of IESR, emphasized the importance of allocating quotas at the power system subsystem cluster level to provide clarity for consumers and ensure investment certainty for rooftop solar PV businesses.

Tumiwa stressed, “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.”

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Furthermore, IESR encourages the MEMR to actively engage in socializing the regulations on rooftop solar PV and to facilitate the distribution of quotas and mechanisms to consumers. The organization also urges other Electricity Power Holder Business License (IUPTLU) holders to submit capacity quotas promptly.

However, concerns persist regarding the alignment of the newly issued quotas 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. Marlistya Citraningrum, Program Manager for Sustainable Energy Access at IESR, highlighted the importance of considering customer interest and expanding rooftop PV quotas to achieve renewable energy mix targets.

Citraningrum also noted the potential for financial institutions to provide attractive financing schemes for rooftop solar PV installations, now that quotas have been established. The clarity provided by quotas enables financial institutions to assess opportunities for introducing green financing products more comprehensively.

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The allocation of PLN Rooftop Solar PV quotas represents a significant step towards renewable energy integration in Indonesia. However, addressing concerns raised by industry experts will be crucial in ensuring the effective and equitable implementation of rooftop solar PV initiatives.


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