RISING ELECTRICITY NEEDS
The Indonesia Solar Energy Association (ISEA) predicts installed capacity for rooftop solar panels could top 1,000 MW next year and rise by between 3,000 MW and 5,000 MW per year starting in 2025.
“People are becoming more aware about the importance of renewable energy,” said Amarangga Lubis, co-founder of engineering, procurement, and construction (EPC) firm SolarKita. “Since the pandemic, the work from home culture has been established and electricity needs at home are rising.”
Lubis predicts massive growth in solar power installations over the next five years. “People will be more picky and they will invest in things that are more beneficial” for the environment, he said.
To be sure, solar remains a minor energy source in Indonesia, the world’s biggest exporter of the thermal coal used in power plants.
Coal powers about 60 per cent of Indonesia’s 73,000 MW of electric generation capacity, compared with solar’s 180 MW, which includes solar farms and private rooftop PV cells.
But, Indonesia has the potential for 400,000 MW of solar power, its energy ministry has forecast.
Falling prices for Chinese PV cells has driven the rise in private installations since the solar power produced from the panels is cheaper than power sold from PLN.
The systems from western countries that were the only ones previously available were also 10 times more expensive, said Ilham Rizky, founder of solar installer Batara Energi.
New financing methods, such as solar panel leasing for commercial users, have also helped businesses invest in solar, said Solarkita’s Lubis.