If you've been researching solar panels in Indonesia, you've probably run into the phrase "net metering" in older articles. You might have read that you can earn credits from PLN for excess solar you push to the grid, that the payback period is 5 to 7 years, and that exporting power makes grid-tied systems a smart play. Most of that math was based on rules that no longer exist.
Permen ESDM 2/2024 replaced the earlier Permen ESDM 26/2021 and removed net metering credits for residential solar. If you're sizing a system today or reviewing a quote, you need to understand what changed and how it reshapes the numbers.
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TL;DR
- Indonesia ended net metering for residential solar with Permen ESDM 2/2024. Excess power you export to PLN now earns you zero credits.
- Size your system for self-consumption, not max production. Oversizing above your daytime load wastes panels you paid for.
- Hybrid (solar + battery) beats pure grid-tied under zero-export rules: the battery stores your afternoon surplus instead of giving it to PLN for nothing.
- SLO certification is still required for any grid-connected system. Your installer files it; budget Rp 1 to 2 million for the process.
- USA, Australia, and many EU countries still have net metering. Indonesia chose a different policy path. Plan around what the rules actually are in 2026.
- Target 70 to 90% self-consumption rate on a hybrid system. That's the realistic sweet spot given PLN zero-export and typical villa load profiles.
What net metering was, and why Indonesia ended it
Under the old Permen ESDM 26/2021, Indonesian residential solar owners could export surplus electricity to PLN's grid and earn kilowatt-hour credits at a 1:1 ratio. If your 5 kWp system produced more than you consumed during the day, the excess went to PLN and showed up as a credit on next month's bill. That credit then offset your nighttime consumption. In theory, a well-sized grid-tied system could reduce your monthly bill to near zero.
This made grid-tied systems (no battery) an attractive entry point. Upfront cost was lower than hybrid, the math looked clean, and "near-zero bill" was a genuine goal for many homeowners.
PLN ended the arrangement primarily to protect grid economics. At high residential solar penetration, uncontrolled exports create voltage stability and load-balancing problems, particularly in dense areas and zones with older distribution infrastructure. Many countries with high solar penetration are wrestling with the same challenge. Indonesia chose to resolve it by removing export credits entirely rather than introducing time-of-use pricing or tiered export limits.
Permen ESDM 2/2024 formalized zero-export for residential systems. You can still connect to PLN (and PLN still functions as a backup source for cloudy days and nighttime), but any power your panels send to the grid earns you nothing. PLN gets it for free.
For anyone who sized their system expecting net metering to survive, this was a costly change. For anyone sizing a new system today, it means the entire optimization logic is different.
What zero-export means for how you size a system
Under net metering, oversizing made sense. Produce 30 kWh, consume 20 kWh, the extra 10 kWh went to PLN as a credit. No loss.
Under zero-export, that 10 kWh disappears. You paid for the panels that produced it, PLN's grid absorbs it, and you see nothing. That's wasted capital.
The practical implication: size for what you actually consume during daylight hours, not for maximum panel output.
Here's the framework we use:
Daytime load first. What appliances are running while the sun is out? AC in common areas, water heater, fridge, appliances, pool pump if it runs during the day. For a typical three-bedroom Bali villa with daytime occupancy, that's usually 8 to 15 kWh consumed between 7 a.m. and 6 p.m.
Size panels to match that daytime load. With Bali's 4.7 to 5.0 peak sun hours, a 5 kWp system produces roughly 23 to 25 kWh on a clear day. After derating for heat, dust, and wiring losses (roughly 20%), you're looking at 18 to 20 kWh net. That's a good match for most villa daytime loads without much excess going to the grid for free.
Add a battery for evening coverage. A 10 kWh LiFePO4 battery stores your afternoon production surplus and covers your evening load from 6 p.m. to 10 p.m. Under zero-export, this battery is now more valuable than before: it captures what would otherwise be wasted instead of being exported for credits. Even if you're not doing full off-grid, a battery justifies itself faster in the zero-export world.
For a grid-tied system with no battery, the right panel size is often smaller than it would've been under net metering. Size to your morning-to-midday load only. Don't add extra kWp just because it looks good on a quote.
Hybrid vs grid-tied: how the zero-export rule changes the comparison
Before 2024, the decision between grid-tied and hybrid was mostly about backup power: did you want protection from PLN outages? If not, grid-tied was simpler and cheaper, and net metering made it financially competitive with hybrid.
Under zero-export, the calculation shifts.
A grid-tied system saves you money only during hours when you're consuming the power your panels produce in real time. Evening load, nighttime AC, and morning appliances running before sunrise all still pull from PLN at full tariff. If your villa consumes 30 kWh per day and 15 of those happen after sunset, your grid-tied system only offsets the other 15.
A hybrid system with battery stores your afternoon surplus (which would otherwise go to PLN for free) and uses it in the evening. That same 5 kWp setup with a 10 kWh battery now covers 70 to 80% of your total daily load instead of just the daytime half.
The extra cost for the battery (roughly Rp 33 to 50 million for a 10 kWh LiFePO4 pack in 2026) pays back faster when the alternative is giving surplus production to PLN for nothing.
Our default recommendation for Bali villa owners today is hybrid, not grid-tied. Battery prices have dropped, the savings math is better under zero-export, and blackout protection is included. The only case where grid-tied still makes sense is when a villa genuinely consumes almost all solar production in real time, such as a property with continuous daytime appliances (commercial kitchen, pool running all day) and very little evening load.
| Setup | Monthly savings | Blackout protection | Upfront cost | Best fit |
|---|---|---|---|---|
| Grid-tied (no battery) | Daytime hours only | No | Rp 50 to 80 million for 5 kWp | Daytime-heavy load only |
| Hybrid (solar + battery) | Day + evening | Yes | Rp 100 to 140 million for 5 kWp + 10 kWh | Most villa owners in 2026 |
| Full off-grid | Near 100% | Full | Rp 150 to 200 million for same daily coverage | No PLN or unreliable PLN |
The SLO and PLN registration: still required
Zero-export didn't remove the administrative requirements. Any grid-connected system (both grid-tied and hybrid that uses PLN as backup) still needs an SLO: Sertifikat Laik Operasi, the operating worthiness certificate from PLN.
The SLO process includes:
- Application via PLN's online portal or the provincial PLN service center
- System inspection by a PLN-authorized electrical inspector
- Certificate issuance before the system can legally operate
For residential systems, this is handled at the kabupaten or kota PLN level. Your installer should manage the SLO filing as part of the project scope. Budget Rp 1 to 2 million for the certificate plus any registration fees. It's not a hidden cost if your installer is upfront about it, but always confirm the SLO is included in the quote scope before signing.
One note worth flagging: PLN's portal has an area kuota system in some regions, meaning PLN limits how many residential solar connections it accepts in certain grid zones per quarter. In most Bali areas this hasn't been a binding issue yet, but it's worth your installer confirming before ordering equipment. You don't want panels on the roof and a months-long wait for SLO approval because your grid zone is at quota.
For full off-grid systems (no PLN connection at all), the SLO requirement doesn't apply. The system runs on your own circuit with no grid interconnection to certify.
When this doesn't fit your situation
Zero-export hurts the economics most for systems that were sized to export. If you see a quote for a 10 kWp system for a villa that only uses 15 kWh per day, those extra panels are producing power you'll export for free. The cost-to-savings ratio gets worse than it looked under the old rules.
We'd rather say this plainly: if your daytime load is modest and you're considering a large grid-tied system because an older net-metering projection made it look attractive, re-run the numbers with zero-export assumptions. The payback period stretches out, and the case for oversizing falls apart.
Also worth noting: if you're a non-resident owner with a villa that sits empty for stretches of the year, a hybrid system still makes sense for blackout protection and property value, but the financial ROI is softer when nobody's home consuming the production. The math needs to use actual occupancy, not "full year, every day."
Ready to size your home?
The rules changed in 2024, and a lot of quotes still circulating were sized under the old net-metering logic. If you want a sizing that reflects zero-export rules and your real load profile, we can build that out for free.
Tell us your villa size, your monthly PLN bill, and whether PLN is reliable at your location. We'll come back with a realistic system size, cost range, and payback projection under current regulations, not the outdated numbers.
Frequently asked questions
No. Permen ESDM 2/2024 removed net metering for residential solar. You can no longer receive PLN credits for excess power you export to the grid. All residential PV systems are now expected to size for self-consumption only.
