Solar Feed-In Tariff of Indonesia (2016)

The Feed-in Tariff (FiT) policy introduced in July 2016, after the 2013 solar auction programme was unconstitutional by the Supreme Court. The FIT regulation targets development of 250 MW of PV capacity in 22 provinces. FiTs are granted for period of 20 years in the range of USD 0.145-0.25/kWh and vary by regions.Preconditions for the FIT:A capacity quota of 250MW is the eligible maximum under the FiT, while an implementation timeline is not provided.Largest quota is in Java at 150 MW and the smallest quota is 2.5 MW in Papua/West Papua combined provincesThere is a maximum limit of project size per developer based on the available quota in the region: Quota above 100 MW, the limit for developers is 20 MWQuota between 10-100 MW, the limit for developers is 20% of the quota Quota below 10 MW, there’s no limitLocal content on the project is required (43.8%), subject to the minimum based on the Ministry of Trade and Industry’s regulations. If the requirement is not reached, the FiT will be reduced by the same percentage. For example, if a project only meets 60% of local content requirements, the FiT will be lowered by 40%.Penalties for late completion are given, if the Commercial Operation Date (COD) is attained later than after 12 months for projects 10MW.

Want to know more about this policy ? Learn more