How-to Obtain Approval for the use of Rooftop Solar Power Plants (PLTS) in Homes and/or Small-scale Industries in Indonesia

How-to Obtain Approval for the use of Rooftop Solar Power Plants (PLTS) in Homes and/or Small-scale Industries

INTRODUCTION

In Indonesia, there are several ways to utilize renewable energy sources, one of them is by installing Rooftop PLTS, a power plant using photovoltaic modules that are installed and placed on the roof, walls, or other parts of houses or buildings owned by the community. The usage of Rooftop PLTS is aimed to (i) reduce electricity bills for Rooftop PLTS customers, (ii) obtain electricity from renewable energy sources; and (iii) contribute in the reduce of greenhouse gas emissions.[1] Rooftop PLTS Customers are every person or entity that installs a Rooftop PLTS System that is connected to an electrical power system  holds a business license to supply electric power for the public interest.[2] In regulating the usage of Rooftop PLTS, the Government has issued several regulations that have been adjusted several times with the latest regulation is Minister of Energy and Mineral Resources Regulation Number 2 of 2024 concerning Rooftop Solar Power Plants Connected to the Electricity Network of Holders of Electricity Supply Business Licenses for the Public Interest (“IUPTLU”) by the Ministry of Energy and Mineral Resources (ESDM). This regulation has been enacted since 31 January 2024.

The issuance of this regulation is also an effort to improve and replace Minister of Energy and Mineral Resources Regulation Number 26 of 2021 related to rooftop solar power plants. This new regulation is a policy adjustment in the use of rooftop solar power plants through the elimination of provisions regarding capacity limits, export-import of electric energy, and capacity charges, as well as the addition of quota provisions for the development of rooftop solar power plants.

Rooftop PLTS is one of the technologies that can be used by the public to save electricity costs, so the mechanism and procedures for its installation are interesting to discuss. In order to be able to use Rooftop PLTS, prospective customers need to obtain approval on the usage of Rooftop PLTS. This issuance of approval can be divided into few steps as elaborated below:

Step 1: Submitting the Application

The first step is to submit an application to construct and install the Rooftop PLTS System to the IUPTLU Holder with a copy to the Director-General of EBTKE and Director-General of Electricity in January or July. Application form can be found in Appendix II of MEMR Regulation 2/2024.[3]

The application shall be submitted within a maximum period of 1 (one) month from the publication of the quota for the development of Rooftop PLTS based on clustering.

Step 2: Approval or Rejection of the Application

The IUPTLU Holder is required to review and decide the application within 30 (thirty) calendar days after the application month has ended:[4]

1. Approved: The IUPTLU Holder will inform customer of the approval. However, if there is no information whether IUPTLU Holder approves or rejects one’s application within the time frame, the application is considered to be approved and Director-General EBTKE will inform the approval to IUPTLU Holder.
2. Rejected: The IUPTLU Holder will inform customer of the rejection, in addition with the reasons. Customers can submit another application. However, if an application is rejected under the reason of unavailable quota, the customer is put on a waitlist for the following period.

Step 3: The Change of Payment Mechanism of Electric Power Tariff

If the payment of electric power tariff of prospective Rooftop PLTS Customer uses prepaid mechanism, the application shall apply as an application for change of prepaid electric power tariff payment mechanism into postpaid mechanism. IUPTLU holder must approve the application for the change of payment mechanism of electric power tariff and the IUPTLU holder shall change the electric power tariff payment mechanism from prepaid to postpaid together with the installation of an Advanced Meter.[5]

Miscellaneous

The Rooftop PLTS System, with capacity up to and over 500 kW, needs a permit unlike the ones that are low in capacity. This permit is a Business License for Electrical Power for Personal Interest (“IUPTLS”) for the construction and installation of Rooftop PLTS System. Those who construct and install Rooftop PLTS System with capacity of up to 500 kW must make a report prior to the construction and installation to the MEMR or governor, as a compliance to fulfil the IUPTLS requirement.[6] However, for the Rooftop PLTS System with more than 500 kW capacity strictly, it will need to obtain IUPTLS. [7] These permits and reports are to be done through the Online Single Submission system (oss.go.id). Both the Rooftop PLTS System over 500 kW and the Rooftop PLTS System of up to 500 kW must obtain the Good Operation Certificate (Sertifikat Laik Operasi/SLO) issued by technical inspection agency in accordance with the provisions of laws and regulations.[8]

CONCLUSION

The use of renewable energy not only reduces dependence on non-renewable energy sources that will one day run out, but also helps reduce the environmental impact of fossil energy use. And the use of rooftop solar power plants is one of the contributions that can be made by the community in accelerating the energy transition to renewable energy.

 

REFERENCES

Minister of Energy and Mineral Resources Regulation Number 2 of 2024 concerning Rooftop Solar Power Plants Connected to the Electricity Network of Holders of Electricity Supply Business Licenses for the Public Interest (2024)

[1] Article 3 of MEMR Regulation 2/2024

[2] Article 1 number 2 of MEMR Regulation 2/2024

[3]Article 14 of MEMR Regulation 2/2024

[4] Article 15 of MEMR Regulation 2/2024

[5] Article 16 of MEMR Regulation 2/2024

[6] Article 18 of MEMR Regulation 2/2024

[7] Article 17 and 18 of MEMR Regulation 2/2024

[8] Article 24 of MEMR Regulation 2/2024

Melvin Julian

Middle Associate

melvin.jn@ap-lawsolution.net

 

Marcel Raharja

Junior Associate

marcel.ra@ap-lawsolution.net