In August this year, the government revisited the regulation on rooftop solar systems and issued the Ministry of Energy and Mineral Resources (“MEMR”) Regulation No. 26 of 2021 (“New Regulation”). This New Regulation became effective from 20 August 2021 and regulates rooftop solar system connected to the power supply grid owned by the holders of power supply business licence for public interest (Izin Usaha Penyediaan Tenaga Listrik untuk Kepentingan Umum) or commonly referred to as IUPTLU.
Despite their increased global popularity, buildings or properties with rooftop solar systems are still relatively rare in Indonesia. Previously, the government had already issued two regulations on rooftop solar systems, namely MEMR Regulation No. 1 of 2017 and MEMR Regulation No. 49 of 2018, as amended several times and lastly by MEMR Regulation No. 16 of 2019. The former regulated, among others, the parallel operation of a rooftop solar system and the electricity network owned by PLN – Indonesia’s state electricity company, while the latter regulated utilisation of a rooftop solar system by consumers of PLN. While the New Regulation revoked the 2018 regulation in its entirety, only the parallel operation related to the utilisation of rooftop solar system provisions in the 2017 regulation are revoked.
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