Indonesia’s Ministry of Energy and Mineral Resources (MEMR) has passed a new regulation under the MEMR rules to boost the solar rooftop PV industry. The rules originally came into force in 2018. Since then, three amendments have been made to the rules, including the new regulation MEMR 26/2021. The new regulation aims to provide a better net-metering tariff, a longer reset period, expansion to non-PLN business area, and more efficient application process.

Greater incentives have been provided for solar PV development under the new rules. These include new net metering rules which have increased the net metering factor from 0.65 to 100. This will allow the owners of PV systems to be given credits for the surplus power they inject into the grid at the same tariff paid by them for purchasing electricity from the network. Additionally, rather than the earlier three-month period, these credits can be accumulated for up to a period of six months. These incentives are expected to spur growth in Indonesia’s solar PV sector and help the nation achieve its carbon emission targets.

As per a recent study by the Institute for Essential Services Reform, Indonesia has the potential to deploy up to 655 GW of solar rooftop PV capacity. As of 2020, the country had deployed 172 MW of solar power, with 17 GW added in the year 2020.