Advancing Rooftop Solar PV in Non-PLN Business Areas

Indonesia’s energy transition is gathering pace, and rooftop solar is set to play an increasingly important role in that journey. As more businesses and institutions consider installing solar photovoltaic systems, the challenge is no longer only about encouraging uptake. It is also about ensuring that expansion happens in a way that is technically sound, transparent, and aligned with power system reliability. This is particularly relevant in non-PLN business areas, where the review and approval of rooftop solar photovoltaic quota proposals require a clear and practical approach. To support this process, guidelines and simple review tools have been developed to help make quota evaluation more structured, more consistent, and more evidence based. 

Why does this matter? 

In 2024, the Ministry of Energy and Mineral Resources (MEMR) issued 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 public interest. The regulation revises MEMR Regulation Number 26 of 2021 and confirms that the Government needs to determine rooftop solar quotas for a five-year period. 

The purpose of this quota-setting approach is to support the optimum deployment of rooftop solar while maintaining grid stability. In other words, the growth of clean energy needs to be matched by careful planning so that the electricity system remains reliable. To implement the regulation, the Government has already issued rooftop solar quotas for each power system in Perusahaan Listrik Negara (PLN) business areas. However, the situation is different in non-PLN business areas. In these areas, the maximum allowable installed rooftop solar capacity is not explicitly regulated in the same way. Instead, non-PLN business areas are required to submit a quota proposal to the Directorate General of Electricity, which then reviews and approves it. 

That review process is important, but it can also be technically demanding. Different business areas have different load characteristics, generation mixes, and operational constraints. A more standardised method is therefore needed to help ensure that proposals are assessed fairly, consistently, and with sufficient technical grounding. 

What is the guideline designed to do? 

The guideline has been developed to support the Directorate General of Electricity in reviewing rooftop solar photovoltaic quota proposals submitted by non-PLN business areas. It is accompanied by a simple tool that provides an indicative assessment of whether a proposed quota can still be increased or whether fulfilling the quota may create risks for system stability. 

The tool is not intended to replace a detailed power system of study. Rather, it serves as an initial screening mechanism. This is important because early-stage screening can help reduce uncertainty, identify proposals that need closer review, and provide a more consistent basis for decision-making.  

In practical terms, the tool helps answer a straightforward but important question, “can the proposed rooftop solar quota be accommodated without compromising the technical reliability of the system?” 

How does this approach work? 

The review framework recognises that non-PLN business areas do not all operate under the same conditions. The guideline therefore distinguishes between two broad categories of Business Areas; non-PLN business areas connected to PLN grid and isolated non-PLN business areas (not connected to PLN grid).  

Certain criteria and consideration used in the tools such as SNSP (System Non-Synchronous Penetration), and zero export regulation. In addition, a more reliable review process depends on better input data. For that reason, the guideline identifies the information needed to assess quota proposals in a more structured way such as load profiles, generation profiles, energy production from solar PV rooftop, and the options to add BESS in the system if the business area intends to install BESS. 

This requirement for clearer and more standardised data is one of the most valuable features of the approach. It encourages proposal submissions to be based on measurable system conditions rather than on assumptions alone. 

Why can this make a real difference? 

Although the tool is not a substitute for detailed power system studies, it has strong potential to improve the governance, transparency, and pace of rooftop solar development in Indonesia. 

• First, it can enable faster and more consistent quota evaluation. A standardised preliminary screening process can reduce reliance on ad hoc assessments and lengthy back-and-forth exchanges, helping to shorten review timelines and reduce the number of man-hours needed per proposal.
• Second, it can support greater regulatory clarity and predictability. When technical constraints are translated into rule-based criteria, both regulators and business areas can have a clearer understanding of what levels of rooftop solar can be accommodated without undermining system stability.
• Third, it can encourage better data transparency and stronger system planning. Standardising proposal requirements help improve load monitoring, generator data management, and solar generation forecasting. Over time, this can strengthen planning practices at distribution level and support higher shares of renewable energy.
• Fourth, it can create better alignment between system reliability and decarbonisation goals. By linking rooftop solar growth to actual system conditions such as load profiles, generator constraints, and non-synchronous penetration, the review process helps ensure that renewable energy expansion proceeds in a technically sustainable way. 

Looking ahead 

Indonesia’s energy transition needs both ambition and robust governance. Rooftop solar has enormous potential, but its growth must be supported by review processes that are clear, practical, and technically credible. The development of this guideline for non-PLN business areas is an important step in that direction. By helping make rooftop solar quota reviews more transparent, more consistent, and more data-driven, it supports a stronger foundation for the future expansion of clean energy in Indonesia. 

 
For more details, the brochure can be accessed at link below