Client Alert – New Solar Rooftop Regulation Issued

After long pros and cons discussions among multiple stakeholders, the Minister of Energy and Mineral Resource (MEMR) has finally issued MEMR Regulation No. 26 of 2021 on Solar Rooftop Connected to the Grid of Power Supply Business License for Public Interest (IUPTLU) Holders (MEMR Reg. 26/2021) which replaces the previous regulation on solar rooftop, namely, MEMR Regulation No. 49 of 2018 (as amended) (MEMR Reg. 49/2018). Do note that even though it was only published a couple of days ago, MEMR Reg. 26/2021 is deemed effective as of 20 August 2021.

Unlike MEMR Reg. 49/2018 which only covers PLN’s consumers, MEMR Reg. 26/2021 also applies to non-PLN’s consumers (i.e., consumers of non-PLN IUPTLU holders).

Under MEMR Reg. 26/2021:

(i) the multiplier in the calculation of exported electric power generated from consumers’ solar rooftop system is increased from previously 65% to 100%;

(ii) the accumulation period of excess electric power balance generated from consumers of solar rooftop systems is extended from previously maximum 3 months to become 6 months;

(iii) IUPTLU holders’ consumers who utilize a solar rooftop system (Solar Rooftop Consumers) are now allowed to conduct a carbon trading;

(iv) the licensing, reporting, and monitoring of a solar rooftop system will be conducted through an integrated electronic reporting system to be established by the MEMR and PLN; and

(v) Solar Rooftop Consumers from industrial tariff with more than 3 MW solar rooftop system must install a weather forecast which is integrated to the Supervisory Control and Data Acquisition (SCADA) or distribution smart-grid owned by IUPTLU holders.

Please see our newsletter here: Client Alert – New Solar Rooftop Regulation Issued

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