Indonesia’s New Rooftop Solar Regulation Faces Criticism

Bingkai Karya – The recently issued revision of the Regulation of the Minister of Energy and Mineral Resources (ESDM) Number 26/2021 into ESDM Regulation No. 2/2024 concerning Rooftop Solar Power Plants (PLTS) has drawn criticism from various stakeholders. The revision is seen as hindering the development of rooftop solar and jeopardizing the achievement of the 23% renewable energy mix target by 2025.

One of the major concerns is the elimination of the net-metering scheme, which previously allowed customers to sell excess electricity back to PLN to offset their electricity bills. This scheme was crucial for incentivizing rooftop solar adoption, especially for households and small businesses that tend to have higher electricity consumption at night. Without net-metering, the investment in rooftop solar becomes less attractive, and customers may have to bear additional costs for energy storage solutions like batteries.

Another contentious point is the introduction of a quota system for rooftop solar installations. The quota, which is based on PLN’s available grid capacity, creates uncertainty for potential customers and complicates the planning and development of rooftop solar projects.

Critics argue that the new regulation prioritizes the interests of PLN over those of consumers and undermines the government’s goal of accelerating the energy transition in Indonesia. The Institute for Essential Services Reform (IESR) has expressed its disappointment, stating that the regulation lacks a comprehensive approach and fails to address key challenges in rooftop solar development.

The revision of the rooftop solar regulation has sparked a debate among stakeholders, including policymakers, industry players, and environmental groups. It remains to be seen how the regulation will impact the growth of rooftop solar in Indonesia and whether it will hinder the country’s renewable energy ambitions.

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