New Rooftop Solar System Provisions Introduced By Indonesia's Minister Of Mineral And Energy Resources

On 20 August 2021, the Ministry of Energy and Mineral Resources ("MMER") enacted MoMER Regulation No. 26 of 2021 on Rooftop Solar Power Plants Connected to the Electricity Grid for Holders of the Power Provider Business License for Public Interest License ("MMER Regulation 26/2021"). This regulation is issued as a part of Indonesia's commitment to participate in Paris Climate Agreement, for the purpose of reducing greenhouse gas (GHG) emissions.

In this article, we will focus our analysis on the rooftop solar systems pursuant to MoMER 26/2021. This new regulation revokes and repeals the previous legal framework, MoMER Regulation No. 49 of 2018 on Rooftop Solar Power Plants Connected to the Electricity Grid for Holders of the Power Provider Business License for Public Interest ("MMER Regulation 49/18").

Scope of the Rooftop Solar Power Generation System/ Pembangkit Listrik Tenaga Surya ("PLTS") ("Rooftop PLTS System"): Under the previous regime, the Rooftop PLTS System only covers PLN customers. It is now applied to all customers and holders of the electricity power provider business license/ Izin Usaha Penyediaan Tenaga Listrik ("IUPTLU") (Art. 1 Point 1 – 2 of MMER Regulation 26/2021).

The Rooftop PLTS System includes solar modules, inverters, electrical connections, safety systems, and export and import of kWh Meter. To ensure the safety and reliability of each Rooftop PLTS System, any IUPTLU holder must follow the Indonesian National Standards ("SNI") and/or international standards under Indonesia's prevailing laws and regulations (Art. 3 (1) and Art. 4 of MMER 26/2021).

Export and Import of kWh Meter: Art. 1 (4) of MMER 26/2021 defines export and import of kWh meter as a static or electronic meter that can detect and measure the energy and quantity of exported, imported, and net electricity according to the net metering principle. The kWh meter under MoMER 26/2021 is calculated on a monthly basis with the maximum multiplier of 100% (Art. 6 (1) of MMER 26/2021), based on the difference between the amount of imported KWh and exported KWh. We note that the multiplier is larger than that under MoMER 49/2018, which only allows 65% multiplier calculation.

Furthermore, if the total number of the exported electricity is greater than that of the imported in an ongoing month, such difference shall be accumulated and calculated as a deduction of the proceeding month's electricity bill.

Period of Excess Credit Setoff: MMER Regulation 26/2021 revises the calculation of credit setoff from a three-month to six-month period (i.e., January to June with a reset in July, and July to December with a reset in January (Art. 6 (4) to (6) of MMER Regulation 26/2021). In this instance, if a Rooftop PLTS System is installed after January, the excess will be calculated from its first establishment until June of the ongoing year.

Reduction of Timeline for Obtaining PLTS Construction Approval: MoMER Regulation 26/2021 deducts the timeline for processing the PLTS construction approval from 15 working days, as stipulated under MoMER Regulation 49/18, to just 5 working days (Art. 7 (3) of MoMER 26/2021).

Licensing Requirements for users of a Rooftop PLTS System: These are the licensing requirements for users of a Rooftop PLTS system under MoMER 26/2021:

  1. Feasible Operation Certificate/ Sertifikat Laik Operasi ("SLO"): IUPTLU holders are required to obtain SLO as proof that the installed system works in accordance with the applicable requirements.

    This requirement shall only apply to users of a Rooftop PLTS System with a total capacity of (a). more than 500 kW with an integrated panel control; and (b). up to 500 (five hundred) kW with an independent panel control (Art. 15 (1) of MoMER 26/2021).
  2. Responsibility Statement for Safety Requirement: The owner of the installed electric power system and the business entity in charge of the installation (Rooftop PLTS customers) must provide a responsibility statement with the following supporting documents:
    1. product certificate;
    2. a valid manufacturer's warranty;
    3. commissioning test results from the distributor's technicians; or
    4. a power plant maintenance document
    5. electricity power supply (Art. 16 (4) of MoMER 26/2021).
  3. Registration Number issued by the Ministry of Mineral and Energy Resources: After accepting all the required documents, MoMER will issue a registration number, which will be reviewed alongside the customers' monthly report (Art. 16 (6) of MoMER 26/2021).

Monthly Reporting Obligation: Consumers of the Rooftop PLTS System shall submit a report on the utilization of the Rooftop PLTS System to MoMER through the Director-General of New, Renewable Energy, and Energy Conservation/Direktorat Jendral Energi Baru, Terbarukan, dan Konsevasi Energi with a carbon copy to the Director-General of Electricity for each class of tariff in the area of the installed electricity system.

In this instance, the mandatory report shall cover:

  1. data on the number of customers of the Rooftop PLTS System;
  2. data on the number of applications to use the Rooftop PLTS System;
  3. the total capacity of the Rooftop PLTS System;
  4. the total exported electrical power; and
  5. the total imported electrical power (Art. 21 (1) and (2) of MoMER 26/2021).

The above article was prepared by Marshall S. Situmorang (Partner) and Audria Putri (Senior Associate)

Disclaimer: The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.