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Indonesia to soon issue ruling on rooftop solar panel

A solar project developed by Masdar in Jordan (Image credit: Masdar)

JAKARTA (RambuEnergy.com) – The Indonesian Ministry of Energy and Mineral Resources (MEMR) plans to soon issue regulation on rooftop solar panel as a move to boost the use of solar energy in the country as well as assure the safety and security of consumers in using the solar energy.

Minister of EMR Ignasius Jonan said the ruling will allow all consumers of the state electricity company PT Perusahaan Listrik Negara (PLN), outside industry consumers, such as business, government and households, to install rooftop solar panel. These consumers represent two-third of PLN consumers.

He said the ruling, in line with the direction of President Joko Widodo, is expected to be issued in the next few weeks

In addition, he said, consumers can sell their excess capacity to PLN under certain price formula.

The ruling aims to boost renewable energy consumption as well as enable the public in general to invest and at the same time save electricity.

Jonan cited his own experience. He has installed rooftop solar panel with capacity of 15.4 kWp at the cost of Rp200 million. Now, he only monthly electricity bill of Rp1 million, compared to Rp4-5 million previously. Thus, the investment will recover within five years.

The solar market in Indonesia has been relatively underdeveloped until today. The new decree is set to change the situation and open the heavily government controlled solar market.

According to the International Energy Agency (IEA), the limited success of PV rooftop industry in Indonesia was due to lack of clear support mechanisms and transparent framework.

The solar PV development in Indonesia has been strictly possible only through government project tenders and a handful of power auctions by the state-owned electricity company.

So far, the largest share of solar PV projects are government and PLN projects. Privately owned projects are growing, however, they have not reached the level of success that’s needed to qualify Indonesia’s solar PV industry as mature. (*)

Written by Staff Writer. Edited by Roffie Kurniawan (roffie.kurniawan@gmail.com)

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One comment

  1. The new revised regulation have been leaked and it is very unfortunate for Indonesians and the Solar Industry. The rule is meant to expedite and provide some sort of incentives but that is not going to happen. MEMR can stop dreaming about any significant development with the new regulation . Mr PResident, My Energy Minister, for once, do the right thing and don’t let your BUMN (PLN) dictate your decision and a good and fair energy policy for all Indonesian people.

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