Indonesia Revises Rooftop Solar Panel Regulations 

14 Feb 2024

Energy Transition

The Indonesian government has moved forward with the amendment of Energy and Mineral Resources Ministerial Regulation No. 26/2021 on on-grid solar systems and energy distribution and eliminated a key provision that previously allowed homeowners with rooftop solar panels to sell excess energy back to the national electricity firm, PLN.  


As confirmed by Andriah Feby Misna, a representative from the Energy and Mineral Resources Ministry on February 5, 2024, the revised regulation would also saw the implementation of a quota system for on-grid solar installations, limiting them to 100% of a customer's electricity consumption, based on PLN's available grid capacity in their area. 


The new rule, which has been entered into the legislative process at the Parliament, has sparked various reactions. 


Salamudin Daeng, Director of the Indonesian Economic and Political Association (AEPI), viewed the revision as a boon for investors in the renewable energy space and for the country’s economy overall as it avoids the issue of PLN having to buy electricity from private solar panel users, which could strain the state budget. 


"This move positions the public to actively contribute to the nation’s transition towards sustainable energy," said Mr. Daeng at a press conference on February 12, 2024, as quoted by Bisnis Indonesia. 


Meanwhile, Chairman of the Indonesian Solar Energy Association (AESI) Fabby Tumiwa commented that the regulation still needed to be improved before being passed into law, specifically on the issue of the quota system which, according to him, would allow only a limited number of users to connect to the PLN grid, which had a fixed capacity. 


“It will lead to a waiting game where users and businesses cannot get electricity [from renewable sources],” said Fabby, who urged the government to design the quota system carefully to avoid discouraging solar adoption, as quoted by The Jakarta Post.