Rooftop Solar Demand Is Rising, But the Waiting List Is Getting Longer
The climate crisis is becoming harder to ignore.
Weather is getting more extreme, and heatwaves are becoming more frequent.
As a result, many people are starting to look for simple ways to reduce their carbon emissions.
One solution that has gained popularity in recent years is rooftop solar power, or solar panels installed on homes, offices, or factories to generate electricity from sunlight.
The technology is clean.
The energy source is free.
And for a tropical country like Indonesia, the potential is actually enormous.
But this is where the paradox begins.
Interest in rooftop solar continues to rise, yet the queue to install it is getting longer.
The logic seems simple: if the energy is clean and helps reduce emissions, why limit it?
In short, the sun shines every day. But permission to install solar panels doesn’t always come just as easily.
What Is Rooftop Solar?
Rooftop solar refers to solar power systems installed on building rooftops, from houses and office buildings to industrial facilities.
Solar panels capture sunlight and convert it into electricity through a device called an inverter. The electricity can then be used directly for daily needs: powering lights, air conditioners, or industrial machines.
If the electricity produced is more than what is used, the excess can flow into the national power grid. This system is known as on-grid, meaning the solar system is connected to the main electricity network.
To make it easier to imagine, think of it like this. Imagine you have your own water well at home.
You use the water for bathing, cooking, or washing clothes. If there is extra water, previously you could “deposit” it into the distribution system and it would reduce your water bill.
Rooftop solar used to work in a similar way.
But under the latest regulations, excess electricity can still flow into the grid, yet it no longer counts as a credit to reduce your electricity bill.
In other words, it’s like cooking a pot of rice for your neighbors, but you’re still the one paying for the stove’s electricity.
Why Are So Many People Interested?
There are several reasons why rooftop solar is becoming increasingly attractive for both households and industries.
First: lower electricity costs.
After the upfront installation cost, monthly electricity bills can drop significantly.
Second: it’s environmentally friendly.
Many companies install solar panels to reduce their carbon footprint. Global markets are increasingly demanding products made using clean energy.
Third: energy independence.
With solar panels, some electricity can be produced independently, reducing reliance on the national grid.
Installation costs have also declined in recent years, making solar systems more accessible to many people.
In the industrial sector, this trend is also driven by the growing demand for green supply chains, production processes powered by cleaner energy.
So Why Is Rooftop Solar Being Restricted?
Despite growing interest, rooftop solar development in Indonesia has not always been smooth.
Data from the Ministry of Energy and Mineral Resources shows that rooftop solar capacity has increased rapidly from 2018 to 2025. But in practice, many potential users now face long waiting lists.
The main reason is the quota system.
This policy is regulated under Ministerial Regulation of Energy and Mineral Resources No. 2 of 2024 on Rooftop Solar Power Plants.
Under the regulation, rooftop solar capacity is no longer limited by a customer’s electricity capacity. However, installation is now restricted by regional grid quotas.
These quotas are determined by the government and the state electricity company PLN based on the condition of local power systems.
If the quota in a region has been filled, new rooftop solar installations must wait their turn. As a result, many new applications, from households and industries, end up on waiting lists.
Why Did the Government Introduce Quotas?
There are several reasons cited by the government.
1. Electricity Oversupply
PLN argues that the electricity system in the Java–Bali region currently has an oversupply. If rooftop solar capacity continues to grow, additional electricity flowing into the grid could worsen the situation.
But this argument often raises questions.
For instance: if oversupply happens mainly in Java, why not expand solar installations more aggressively in regions that actually lack electricity?
At the same time, despite claims of oversupply, plans to build new fossil fuel power plants, especially coal plants, remain significant under the Electricity Supply Business Plan (RUPTL) 2021–2030.
So the situation can feel contradictory:
the system says it already has too much electricity, yet new fossil power plants are still being planned.
It’s a bit like a friend saying they’re already full, then ordering two more portions of fried rice five minutes later.
2. Concerns About Grid Stability
Solar power depends on sunlight, meaning electricity production fluctuates depending on weather conditions.
Technically, this is known as intermittency.
If solar capacity becomes very large, there is concern about a phenomenon called the Duck Curve, when solar power production drops sharply in the late afternoon, requiring other power plants to quickly ramp up electricity supply.
Technically, this concern is real.
However, many countries have already managed this challenge by strengthening their electricity grids or using battery energy storage systems.
Even within Southeast Asia, Vietnam has installed more than 10 gigawatts of solar capacity.
In other words, the technical challenge can be addressed, if there is enough willingness to address it.
3. Solar Components Are Still Mostly Imported
Another concern involves local content requirements (TKDN).
Many solar panel components are still imported, while domestic industries mostly handle assembly.
Because of this, some argue that rooftop solar development does not yet generate significant economic benefits for Indonesia.
However, many observers say this logic is questionable.
Many other technologies, such as smartphones or electronics, also rely heavily on imported components, yet development continues.
Industrial development often works this way: first importing components, then assembling them, and eventually developing full domestic manufacturing.
4. Indonesia’s Electricity System Is Highly Centralized
Most of Indonesia’s electricity distribution is managed by the state-owned company PLN.
When households and industries begin generating their own electricity through rooftop solar, electricity sales from the grid may decline.
This is where potential conflicts of interest emerge.
Because PLN also sells electricity, solar power generated by consumers could be seen as a form of competition.
As long as the electricity system remains highly centralized, the role of citizens in producing their own electricity will likely remain a subject of debate.
Who Is Affected?
These restrictions affect several groups.
For households, the opportunity to reduce electricity bills while contributing to clean energy becomes more limited.
For industries, the policy may slow down efforts to transition toward low-carbon energy, even as global companies increasingly require renewable energy in their supply chains.
Meanwhile, companies providing solar installation services also face uncertainty, as a market that was previously growing rapidly becomes less predictable.
Why Rooftop Solar Actually Matters?
Rooftop solar offers several key advantages.
It helps reduce emissions and address the climate crisis.
Indonesia aims for renewable energy to reach around 23 percent of the national energy mix, but the country is still far from achieving this target. Rooftop solar is one of the fastest ways to add clean energy capacity.
It does not heavily burden the state budget.
Most rooftop solar installations are financed directly by households or companies.
It does not require new land.
Solar panels can simply be installed on existing rooftops.
It strengthens energy independence.
Communities can produce part of their own electricity instead of relying entirely on the national grid.
In the middle of urgent efforts to reduce emissions and tackle the climate crisis, one important question remains:
Is Indonesia’s energy system ready to give citizens the space to generate their own clean electricity?
