Investor Presentaiton
REGULATION
MEMR Reg No.49/2018: Long awaited regulation of
rooftop PV failed to meet expectations
Stakeholders have expressed their disappointments since the release of the Ministerial Regulation on rooftop solar power system. The new
regulation is perceived as a way to discourage the mass use of rooftop solar PV despite the huge potential of this technology as low-hanging fruit to
meet the 23% renewables target.
PLN officials suggested that the rooftop PV is mainly for regions with unreliable power supply instead of major cities in Java. However, with no
differentiation in electricity tariffs, users in remote areas will be put in a disadvantageous position as they will get less compensation (and longer
payback period) compared to users in big cities as the solar PV prices are higher in remote areas due to logistic costs.
Unattractive scheme
PLN will only compensate 65% of
electricity exported by rooftop
solar PV, much smaller than the
expected 1:1 scheme. This results
in a longer payback period of 11 -
12 years, compared to 7-8 years
under 1:1 scheme. Additionally,
there are capacity charge and
emergency charge for industrial
users.
Capacity cap
The rooftop solar PV system
cannot exceed grid-tied capacity.
Quarterly restart
The electricity exported will offset
the import. If export is higher than
import, the balance can be
accumulated up to 3 months
before being nullified. Under
previous PLN regulation, the
balance was restarted annually.
Transparency
If the application for net metering
scheme is rejected, PLN is not
obliged to disclose the reason of
rejection. Moreover, PLN is also not
required to install the net metering
within specific time once the
application is approved. PLN,
however, has to install the
metering device within 15 days
after the applicant submits fit for
operation certificate.
IESR (Institute for Essential Services Reform) | www.iesr.or.id
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