5 days ago · Indonesia takes a significant step in its energy transition with the launch of its first solar power plant integrated with an energy storage system. Located in Nusantara, the project
Oct 1, 2021 · Solar PV utility-scale and nuclear are installed at 211 GW and 121 GW in 2050. Total emission is reduced to 251 million tonnes CO2-eq or 82% from BAU in 2050. Electricity
Indonesia possesses solar energy potential with a capacity ranging from 3,300 GW to 20,000 GW, spanning from Sabang to Merauke. With increasingly affordable, modular, and easy-to-build and operate solar power plant (PLTS) technology, this project could serve as a strategic solution to provide reliable and affordable energy access across Indonesia.
The Indonesian government has revealed a new initiative aiming to deploy 100 GW of solar. The distributed solar for energy self-sufficiency program encompasses 80 GW of solar that will be deployed as 1 MW solar arrays with 4 MWh of accompanying battery energy storage systems (BESS).
The initiative is still under development, with Indonesia’s Ministry of Energy and Mineral Resources, Coordinating Ministry of Economic Affairs and Coordinating Ministry of Food responsible for its preparation. IESR has estimated Indonesia has a potential solar energy capacity ranging from 3,300 GW to 20,000 GW.
Solar PV has not scaled as fast in Indonesia as in some of its regional peers. In 2022, the country had 0.3 GW of installed capacity—low compared to the 3.1 GW and 18.5 GW of Thailand and Vietnam, respectively (Exhibit 2).
In 2021, Indonesia has identified solar energy as a key resource for the nation, with the Ministry of Energy and Mineral Resources (MEMR) estimating a vast potential of 3,294 GW. Other data from the Institute of Essential Services Reform (IESR) suggests an even larger potential, totaling 7,715 GW.
To maximize this potential, Indonesia has set ambitious targets, as outlined in Presidential Regulation No.22/2017 on the General Plan for National Energy (RUEN). By 2025, the country aims to achieve a solar power installed capacity of 6.5 GW, to be further escalated to 17.6 GW by 2035.
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.