Indonesian Solar Panels: Development, Benefits and Installation Costs

Not only is Indonesia rich in fossil energy sources, but it is also abundant in renewable energy sources, especially sunlight. Throughout the year, almost all regions in Indonesia receive more than 6 hours of sunlight/day or 2,400 hours/year. This abundant potential can be utilised as a renewable energy source that does not damage the environment through the installation of solar panels.

Solar Panels: What are they?

Solar panels are an electrical technology that can convert solar radiation into usable electricity. The electricity converted can be used for various purposes, including residential and commercial. Flexibility is also one of the features of solar panel technology, where solar panels can be placed on empty land, residential roofs, offices, shopping centers, and industrial buildings, thereby expanding its use for a wider range of function.

If you are interested in this technology, Suryanesia will summarise its benefits, its development in Indonesia, and the costs needed to install it.

Benefits of Indonesian Solar Panels

Solar panels have very significant benefits not only for its owners and users, but also the community  and the environment around it. The following are some of the main benefits of using solar panels:

1. With the continuing usage of solar panels, society's dependence on fossil fuels–which are in limited supply and damage the environment – will be reduced,

2. Solar panels will help people in rural areas and remote islands get access to electricity more easily, considering that these areas are often unreachable by conventional electricity networks,

3. With solar panel technology, the user can get economically affordable electricity due to the electrical savings associated from a non-diminishing energy source,

4. The use of solar panels can also reduce the generation of various greenhouse gas emissions that harm the earth, thereby reducing climate change, and

5. Negative impacts on the population’s health will also decrease, especially through reduced air pollution produced by fossil energy power plants, which often causes respiratory distress.

Even though the potential and benefits of solar panel technology are enormous, its implementation in Indonesia faces many challenges, including inadequate infrastructure, low public understanding of the technology, and so on.

Development of Indonesian Solar Panels

Indonesia has enormous solar energy potential, namely around 4.8 kWh/m2 or the equivalent of 112,000 GWp. In a report published by the Ministry of Energy and Mineral Resources, utilisation is only around 149.2 MWp as of January 2024. Based on the solar energy utilisation roadmap that has been made by the Government, the target installed solar panel capacity in 2025 is 3.6 GWp. Despite being realistic, this target is still quite far away and would be difficult to achieve if there is no cooperation from the sectors highly involved with the electricity sector in Indonesia.

Based on the same Ministry of Energy and Mineral Resources report, Banten is the province with the most solar panel users: namely 2,997 users and a total capacity of 12.4 MWp. Meanwhile, West Java is the province with the largest solar panel capacity, namely 39.1 MWp.

If grouped by sectors using solar energy, the following is the total installed capacity of solar panels at the beginning of 2024:

Source: Ministry of Energy and Mineral Resource (2024)

The above sectors, especially businesses and industries in Indonesia, certainly could contribute more so that the Government's solar energy utilisation target can be achieved. The large consumption of conventional electrical power could instead be shifted to the utilisation of solar energy generated from installed panels–which is cost-free as there are now Indonesian solar panel pioneers that offer solar panel installation at no initial investment for the commercial and industrial sectors.

Solar Energy for Commercial and Industrial Sectors

Apart from the government, a business owner could also play a role in accelerating the adoption of solar energy, through the utilisation of solar energy in commercial and industrial buildings. By installing solar panels on the roof of your building, you can supply your own electricity needs with clean energy.

In addition, another positive impact is the reduction in monthly electricity bills for your business, resulting in lower company expenses. These expenses could then be reinvested in other operating units to grow your company. In addition, the contribution of greenhouse gas emissions from your business activities will be reduced. This not only helps you contribute to the fight against global warming, but also helps your business increase brand image and credibility.

If you are interested, Suryanesia can help you utilise solar energy so that your business can grow sustainably. In terms of experience, Suryanesia has completed many projects in the commercial and industrial sectors. Among Suryanesia's clients are PT Wintrad Jaya (432 kWp), Gaia Bumi Raya City (1,491 kWp), Plaza IBCC (409 kWp), and many more.

How much does it cost ?

The cost of installing solar panels depends on the capacity of the electricity generated. A 1 kWp installation could cost up to Rp14-24 million. In addition to the size of the desired capacity, the price is also determined by various factors, such as the complexity of the installation, the structural reinforcement needed, and others. In the long run, the investments you make will save you a lot on your monthly electricity costs.

In addition, by partnering with Suryanesia, there’s no need to spend an upfront investment thereby freeing clients from any capital expenditure. All you have to do is pay the monthly rent and experience the reduced cost of electricity consumption every month.

In short, through the Solar-as-a-Service scheme offered by Suryanesia, you will get the following benefits:

• Electricity bill savings without the need for upfront investment,
• Making the business greener and more sustainable, and
• No hassle, because Suryanesia will be responsible for the end-to-end design, licensing, installation, operation, and maintenance of the system.

Long-term Benefits of Using Solar Panels

In addition to lowering operating expenses, here are some of the long-term benefits of using solar panels, for both businesses and households:

• You can have a more independent and stable source of electrical energy,
• If you use an off-grid type PLTS, there is no need to worry about power outages like when you use a conventional power grid. However, it will be different if you use on-grid PLTS, where the electricity grid will automatically go out if the conventional grid electricity experiences a blackout.
•  No maintenance is required, especially since Suryanesia's Solar-as-a-Service scheme includes scheduled cleaning and maintenance services 2-4 times a year for the duration of the contract.
•  Solar Panels are covered by a 25-30 year warranty in case of problems and system insurance with full replacement value.

With the above conveniences, you only need to pay monthly rent without paying for the initial installation or maintenance costs.

Conclusion

By utilising solar energy, you are not only helping to tackle global warming through reduced emissions, but also ensuring your business can grow sustainably. So, are you interested in installing solar panels?

Suryanesia is the perfect solution to help you. Suryanesia is a leading company in Indonesia with Solar-as-a-Service solutions specifically designed to meet the needs of the commercial and industrial sectors. Contact us now, if you want to get a great deal with no initial investment and enjoy the benefits hassle-free.