It is calling on the government to pay attention to customer interest in the adoption of rooftop solar so it can increase the quota in 2025, in an effort to achieve a targeted 23% of the energy mix from renewables in 2025.
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Indonesia needs to tackle several obstacles to increase rooftop solar capacity. Winofa says low retail electricity prices, coupled with weak financial incentives, result in slow rooftop
It is calling on the government to pay attention to customer interest in the adoption of rooftop solar so it can increase the quota in 2025, in an effort to achieve a targeted 23% of the energy mix from renewables in 2025.
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Timeline of rooftop solar PV policies in Indonesia. The MEMR cooperated with the United Nations Development Program (UNDP) in Indonesia to support rooftop PV implementations and introduced an incentive program for rooftop PV systems.
The number of rooftop photovoltaic (PV) systems in Indonesia has increased massively following the implementation of the net-metering (NEM) scheme. However, it is still below the target due to high investment costs and low electricity prices.
However, due to Indonesia’s low regulated electricity tariffs, rooftop solar is not an economic option for most consumers. In 2020, the average PLN regulated tariff was just $0.07/kWh for households (including subsidized household groups), $0.08/kWh for industrial customers and $0.09/kWh for commercial customers.
The most recent regulation is solar energy based on a ceiling price. Indonesia began to regulate rooftop PV systems in 2013 through the PLN Regulation No. 0733 of 2013.
It adds that the newly issued quota is still not in line with the National Strategic Program target of reaching 3.6GW of rooftop solar capacity by 2025, which was set in 2021. According to research firm Rystad Energy, the installed rooftop solar capacity in Indonesia was only 0.192MWp as of May 2024.
Under the new regulatory regime, IUPTLU holders must establish a five-year quota for development of Rooftop Solar PV systems in Indonesia. The quota must take into account (i) the national energy policy, (ii) the IUPTLU holder’s electricity supply business plan, and (iii) the reliability of the IUPTLU holder’s electricity network.
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