Government issues rooftop solar PV quota, offers investment certainty for businesses

Jakarta—The Ministry of Energy and Mineral Resources (MEMR) has announced the quota for the development of Rooftop Solar PV Systems for PLN for 2024-2028. This decision was made through Decree of the Director General of Electricity Number 279.K/TL.03/DJL.2/2024, with a total quota of 5,746 MW, from 901 MW in 2024 and increasing to 1,593 MW in 2028.

The Institute for Essential Services Reform (IESR) appreciates this step but highlights the need for quota distribution based on clustering or sub-systems as stipulated in Permen ESDM No. 2/2024.

IESR Executive Director Fabby Tumiwa stated that providing rooftop solar PV quota distribution at the power system subsystem/cluster level will clarify the issue for consumers and provide investment certainty for rooftop solar PV business players.

IESR encourages the government to proactively socialise the quota mechanism and immediately reminds IUPTLU holders to submit capacity quotas before July 2024.

“The Director General of Electricity must ensure that PT PLN immediately submits the distribution per cluster before July when the application period begins,” Tumiwa said in a written statement Tuesday, June 11.

IESR Sustainable Energy Access Program Manager Marlistya Citraningrum emphasized the importance of understanding customer interest in rooftop solar PV adoption to increase the quota by 2025 and achieve the renewable energy mix target of 23 per cent.

“Interest from industrial customers is high and aimed at reducing energy costs and ensuring sustainable manufacturing processes,” said Marlistya.

Financial institutions are also expected to capitalize on this opportunity by offering attractive financing schemes, given the existence of quotas that provide clearer information about the rooftop solar market. (Hartatik)

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