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

In Brief

Installing a rooftop solar plant (PLTS) in Indonesia needs approval from the IUPTLU holder under MEMR Regulation 2/2024. Applications are submitted in January or July and decided within 30 calendar days; prepaid customers switch to postpaid. Systems above 500 kW need an IUPTLS licence, smaller systems only a report, and all systems need a Good Operation Certificate (SLO).

Key Takeaways

• Rooftop PLTS is a power plant using photovoltaic modules installed on a roof, wall or other part of a house or building.
• Its use aims to cut electricity bills, obtain renewable electricity and reduce greenhouse gas emissions.
• Approval applications go to the IUPTLU holder, with copies to the Director-General of EBTKE and the Director-General of Electricity, in January or July.
• The IUPTLU holder must decide within 30 calendar days; silence means the application is deemed approved.
• Systems of up to 500 kW require a report; systems above 500 kW require an IUPTLS licence. All systems need an SLO.

What is rooftop solar and why install it?

In Indonesia, one way to use renewable energy is by installing Rooftop PLTS, a power plant using photovoltaic modules installed and placed on the roof, walls or other parts of houses or buildings owned by the community. A Rooftop PLTS Customer is every person or entity that installs a Rooftop PLTS System connected to an electrical power system held by a business licence holder to supply electric power for the public interest.

The use of Rooftop PLTS is aimed to:

• reduce electricity bills for Rooftop PLTS customers;
• obtain electricity from renewable energy sources; and
• contribute to the reduction of greenhouse gas emissions.

The legal framework

The Government has issued several regulations on Rooftop PLTS, adjusted several times. The latest 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 Licences for the Public Interest (IUPTLU), enacted on 31 January 2024.

This regulation improves and replaces MEMR Regulation Number 26 of 2021. It adjusts policy on rooftop solar 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.

Step 1: Submit 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 the Director-General of Electricity, in January or July. The application form can be found in Appendix II of MEMR Regulation 2/2024.

The application must be submitted within a maximum of 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 must review and decide the application within 30 calendar days after the application month has ended:

• Approved. The IUPTLU Holder will inform the customer of the approval. However, if there is no information on whether the IUPTLU Holder approves or rejects the application within the time frame, the application is considered approved, and the Director-General of EBTKE will inform the IUPTLU Holder of the approval.
• Rejected. The IUPTLU Holder will inform the customer of the rejection, together with the reasons. Customers can submit another application. However, if an application is rejected because the quota is unavailable, the customer is put on a waitlist for the following period.

Step 3: Change of tariff payment mechanism

If the prospective Rooftop PLTS Customer pays the electricity tariff under a prepaid mechanism, the application also serves as an application to change the prepaid tariff payment mechanism into a postpaid mechanism. The IUPTLU Holder must approve the change and must change the tariff payment mechanism from prepaid to postpaid together with the installation of an Advanced Meter.

Permits: the 500 kW threshold

A Rooftop PLTS System with a capacity of up to and over 500 kW needs a permit, unlike lower-capacity systems. This permit is a Business Licence for Electrical Power for Personal Interest (IUPTLS) for the construction and installation of the Rooftop PLTS System.

• Those who construct and install a Rooftop PLTS System with a capacity of up to 500 kW must make a report prior to construction and installation to the MEMR or the governor, as compliance to fulfil the IUPTLS requirement.
• For a Rooftop PLTS System with a capacity of more than 500 kW, an IUPTLS must be obtained.

These permits and reports are processed through the Online Single Submission system (oss.go.id). Both systems over 500 kW and systems of up to 500 kW must obtain the Good Operation Certificate (Sertifikat Laik Operasi/SLO) issued by a technical inspection agency in accordance with the provisions of laws and regulations.

FAQ

When can I apply for rooftop solar approval?

Applications are submitted to the IUPTLU Holder in January or July, within a maximum of one month from the publication of the rooftop solar development quota based on clustering.

How long does the approval decision take?

The IUPTLU Holder must decide within 30 calendar days after the application month has ended. If there is no response within that time, the application is deemed approved.

What happens if my application is rejected?

The IUPTLU Holder must state the reasons. You can submit another application. If the rejection was due to unavailable quota, you are put on a waitlist for the following period.

Do I need a licence for a small home system?

A system of up to 500 kW only requires a report to the MEMR or governor before construction and installation. A system above 500 kW requires an IUPTLS licence. All systems need an SLO.

Conclusion

Rooftop solar is one of the most accessible contributions the community can make to Indonesia’s energy transition, but it is a regulated one. Under MEMR Regulation 2/2024, approval follows a clear three-step path — application, decision, and tariff mechanism change — with the 500 kW threshold deciding whether a report or a full IUPTLS licence is needed. Following the steps and deadlines avoids delays and keeps the installation compliant from the start.

Originally published in ACTIO E-Magazine Edition 24 (July 2024). Law as of July 2024.

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