Aug 19, 2025 · Solar power companies in Indonesia are struggling to keep their margins intact. The Government of Indonesia had announced a renewable energy target of 23% to reach by
In Indonesia, the price of solar panels typically ranges from IDR 7,000,000 to IDR 15,000,000 per kilowatt peak (kWp). Inverters: Inverters are essential for converting the direct current (DC)
Feb 1, 2024 · The number of rooftop photovoltaic (PV) systems in Indonesia has increased massively following the implementation of the net-metering (NEM) scheme. However, it is still
Aug 19, 2021 · It is critical that Indonesia could take advantage of the rapidly declining cost of renewable energy, especially solar. Solar energy could be key in achieving a more affordable
According to Rystad Energy's analysis, the cost of large-scale ground-mounted solar projects in Indonesia has declined from about $2.6/MW in 2013 to $0.8/MW in 2024, a price that is in the range of the total global cost of solar ($0.5 to $1.8/MW).
As of May 2024, Indonesia's installed rooftop solar capacity was only 0.192 MWp, according to research firm Rystad Energy. Are the goals achievable? Indonesia previously set renewable energy targets, hoping that by 2025, the country's share of renewable power generation in the energy mix will reach 23%.
On average Indonesia receives between 1500 kWh and 2200 kWh per m2 of annual solar energy on a horizontal surface (Global Horizontal Irradiance, GHI). Java, Sulawesi, Bali, and East and West Nusa Tenggara are the best locations for solar PV, while Kalimantan, Sumatra and Papua are less good.
"Currently, Indonesia's industrial and commercial and residential electricity prices are $0.068/KWh and $0.1/KWh, respectively, which is relatively low compared to Southeast Asia's rooftop PV leaders, such as Vietnam, whose industrial and commercial electricity prices are $0.1 per KWh and residential electricity prices are $0.12 per KWh.
It is critical that Indonesia could take advantage of the rapidly declining cost of renewable energy, especially solar. Solar energy could be key in achieving a more affordable electricity price which would then help foster a more sustainable economic growth and serve quality energy access for the public.
According to MEMR Decree No 5/2017, the local content for energy projects in Indonesia was a minimum of 40% in 2017 and will be gradually increased up to 60% in 2019. Due to the relatively small scale of solar manufacturing in Indonesia, it is unlikely that local production can be competitive against international prices.
The global residential solar storage and inverter market is experiencing rapid expansion, with demand increasing by over 300% in the past three years. Home energy storage solutions now account for approximately 35% of all new residential solar installations worldwide. North America leads with 38% market share, driven by homeowner energy independence goals and federal tax credits that reduce total system costs by 26-30%. Europe follows with 32% market share, where standardized home storage designs have cut installation timelines by 55% compared to custom solutions. Asia-Pacific represents the fastest-growing region at 45% CAGR, with manufacturing innovations reducing system prices by 18% annually. Emerging markets are adopting residential storage for backup power and energy cost reduction, with typical payback periods of 4-7 years. Modern home installations now feature integrated systems with 10-30kWh capacity at costs below $700/kWh for complete residential energy solutions.
Technological advancements are dramatically improving home solar storage and inverter performance while reducing costs. Next-generation battery management systems maintain optimal performance with 40% less energy loss, extending battery lifespan to 15+ years. Standardized plug-and-play designs have reduced installation costs from $1,200/kW to $650/kW since 2022. Smart integration features now allow home systems to operate as virtual power plants, increasing homeowner savings by 35% through time-of-use optimization and grid services. Safety innovations including multi-stage protection and thermal management systems have reduced insurance premiums by 25% for solar storage installations. New modular designs enable capacity expansion through simple battery additions at just $600/kWh for incremental storage. These innovations have improved ROI significantly, with residential projects typically achieving payback in 5-8 years depending on local electricity rates and incentive programs. Recent pricing trends show standard home systems (5-10kWh) starting at $8,000 and premium systems (15-20kWh) from $12,000, with financing options available for homeowners.