Ministry of Energy and UNDP Launch the Sustainable Energy Fund to Incentivize Solar Power Use

JAKARTADAILY.ID – The Ministry of Energy and Mineral Resources (ESDM) together with the United Nations Development Program (UNDP) Indonesia launched the Sustainable Energy Fund (SEF) Grant for incentives for Rooftop Solar Power Plants (PLTS).

This grant is part of the Market Transformation for Renewable Energy and Energy Efficiency through Design and Implementation of Appropriate Mitigation Actions in Energy Sector (MTRE3) Project.

This PLTS Roof incentive uses the SEF grant allocation from the Global Environment Facility (GEF) and will be managed and distributed by the Environmental Fund Management Agency (BPDLH). BPDLH is one of the Public Service Bodies (BLU) under the Ministry of Finance that manages funds and financing related to the environment, including energy.

This incentive in the form of a grant aims to encourage the community to install rooftop solar power plants, especially PLN customers in the household, business, and small-medium scale/MSME, and social categories (schools/educational buildings, hospitals, houses of worship). This program is expected to accelerate the massive implementation of the Rooftop PLTS program and contribute to the achievement of new renewable energy targets in the national energy mix.

This is a press release published in Jakarta in the middle of last week and quoted on Monday (14 February 2022).

Also Read: Hary Tanoesoedibjo Announces Evolution of IATA to Become PT MNC Energy Investments

Minister of Energy and Mineral Resources (ESDM) Indonesia Arifin Tasrif said the innovation in grant financing would increase investor and public interest in the use of solar energy. "This incentive is also expected to achieve the economic value of Rooftop PLTS so that investment becomes more attractive and can encourage massive Rooftop PLTS installations and contribute to achieving EBT targets and reducing GHG emissions," he explained.

Arifin further said that the development of Rooftop PLTS will be able to have a positive impact on the community, including the absorption of more than 120,000 workers, an increase in investment of around Rp. 50 trillion, encouraging the growth and development of domestic PLTS supporting industries, encouraging green products in the service sector and green industry. to avoid the carbon border tax at the global level and reduce carbon emissions by 4.5 million CO2.

How to Get Incentives

SEF grants for PLTS Rooftop Incentives will be given based on a performance-based payment mechanism using an e-voucher, where the applicant must pass the verification stage for the fulfillment of the requirements and criteria that have been determined. If the application is approved, the incentive payment is made once in full according to the value of the e-voucher via bank transfer to the applicant's account number.

The three requirements for applying for incentives that must be met are first, the applicant is a PLN customer who will/is in the process of installing a rooftop PLTS and has not operated (not yet installed net-metering) as of December 1, 2021. Then, the applicant must include information related to the Population Identification Number (NIK) or Business Identification Number (NIB) where one NIK/NIB can only submit one application for each category of customers receiving PLTS Roofing incentives. Third, incentives do not apply to Rooftop Solar Power Plants which are financed from government funding sources (APBN/APBD) or assistance/donors.

Also Read: Baca Juga: Adaro Energy Changes Its Name to Adaro Energy Indonesia in a Recent EGMS

The criteria that applicants must meet to get incentives, namely a contract with a PLTS Rooftop Business Entity/EPC must be registered in the 'licensed business' category at the Ministry of Energy and Mineral Resources. The list of these businesses can be viewed via https://siujang.esdm.go.id/Dokumen/Daftar-Badan-Usaha-Detail. The applicant must also show proof of PLN approval, NIK/NIB information, bank account number of the PLTS Roofing customer, Letter of Operation or document from the manufacturer, Statement of Completion of Installation and Payment issued by the Business Entity/EPC, and photo of PLTS Roof installed with GPS coordinates information. For the purchase of a PLTS Roof through an installment scheme, it must include proof of transfer to the lender.

More complete information regarding the criteria, requirements and flow of the SEF grant application for PLTS Roof incentives can be accessed through the ISURYA Application (www.isurya.mtre3.id).