Government Introduces Regulatory Framework on Rooftop Solar Panel for Captive Use

On November 16, 2018, the Minister of Energy and Mineral Resources of the Republic of Indonesia (the “MEMR”) enacted MEMR Regulation No. 49 of 2018 on the Utilization of Rooftop Solar Power Generation System by the Customer of PT Perusahaan Listrik Negara (Persero) (“MEMR 49/2018”).

MEMR 49/2018 was enacted as an attempt of the government to increase energy efficiency for captive power usage through the utilization of rooftop solar power generation system to be installed by the customers of PLN. The regulation also aims to enhance the usage of solar as part of renewable energy.

As of its issuance on November 2018, MEMR 49/2018 has been amended twice by MEMR Regulation No. 13 of 2019 dated September 6, 2019 (“MEMR 13/2019”) and MEMR Regulation No. 16 of 2019 dated October 14, 2019 (“MEMR 16/2019”).

  • Criteria of Rooftop Solar Panel

A Rooftop Solar Power Generation System (Sistem Pembangkit Listrik Tenaga Surya Atap) is defined as a power generation process which utilizes photovoltaic module that will be installed and placed on the roof, walls or other parts of the building owned by the customer of PLN which transmits the electricity generated through the customer’s electricity installation (hereinafter, the “Rooftop Solar Panel”).

The objective of installation and use of Rooftop Solar Panel is to reduce customers electricity usage from PLN and reduce the customers’ electricity bill.

Rooftop Solar Panel itself consists of solar module, inverter, electricity interconnection, secure system as well as the kWh meter for export and import.

For safety reasons, Indonesia’s National Standard (known as “SNI”), International Standard and/or PLN’s standard will be applicable to the installation of a Rooftop Solar Panel.

  • Permits and Licenses

Customers of PLN intending to install Rooftop Solar Panel shall submit an application for its construction and installation to the General Manager of the relevant PLN Distribution Office.

PLN will evaluate and verify the application within 15 (fifteen) business days as of the receipt of a correct and complete application before issuing its approval.

Customers intending to construct and install Rooftop Solar Panel shall also obtain an Operational License (Izin Operasi) which allows power generation for captive use in accordance with the prevailing electricity regulations.

Further, such Rooftop Solar Panel installation shall have an Operational Feasibility Certificate (Sertifikat Laik Operasi or “SLO”).

SLO involves a series of assessment, examination, and verification performed by a Technical Inspection Institution accredited by MEMR to ensure that the electrical installation functions in accordance with necessary requirements and can be declared ready to operate.

Please note that the Rooftop Solar Panel itself may only be constructed by a construction service provided holding an Electricity Supporting Services Business License (Izin Usaha Jasa Penunjang Tenaga Listrik).

  • Other Requirements and Restrictions

To utilize Rooftop Solar Panel, pre-paid customers of PLN must first become post-paid customers. The application to switch to post-paid customer shall be submitted by the applicant along with the application for Rooftop Solar Panel construction and installation to the General Manager of the relevant PLN Distribution Office.

The capacity of the customer’s Rooftop Solar Panel is limited to 100% (one hundred percent) of the connected capacity of such customer to PLN as determined through the total capacity of the inverter.

PLN will also install an electricity export-import meter (meter kWh ekspor-impor energi listrik) for the customers after the Rooftop Solar Panel has obtained an SLO the cost of the consumer.

In the event the electricity exported by the customer to PLN is higher than the electricity imported from PLN in a proceeding month, such difference will be accumulated and accounted as a reduction of the customer’s electricity billing for the subsequent month.   The electricity of PLN’s customer exported to PLN shall be multiplied by 65% of the electricity imported.

  • Installation of Rooftop Solar Panel for Industrial Purpose

Industrial customers of PLN may install Rooftop Solar Panel either in as on-grid (connected to PLN’s grid) or off-grid (separated from PLN’s grid).

In the event the Rooftop Solar Panel is installed in as on-grid, the industrial customers will be subject to capacity charges to be paid every month. The customer shall also report the operational plan of the on-grid Rooftop Solar Panel to PLN.

For off-grid Rooftop Solar Panel, no capacity charge nor emergency energy charge will be charged by PLN.

  • Installation of Rooftop Solar Panel by Non-Customer of PLN

Entities who are not customer of PLN are theoretically allowed to install Rooftop Solar Panel for captive use by reporting to the Directorate General of New and Renewable Energy and Energy Conservation (“DJ EBTKE”).

The regulations appear to be well-accepted by the relevant industries, from manufacturing, utilities, constructions, electricity supporting services, solar panel manufacturing and/or trading, and other companies.


January 17, 2020

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