4 Reasons of Going Solar Now in Indonesia

Solar revolution is a rapid disruption. We are seeing 31% annual growth of solar.¹ Similarly, big companies worldwide are going solar. (See Exhibit 1.) For example, Apple has installed 101 MW of solar. This is enough to power around 40,000 houses. Target, a giant department store retailer in the United States, has installed twice as much solar. Likewise, other big brands such as General Motors, LOreal, FedEx, Intel, Amazon, IKEA, and Walmart are following behind. If are unsure on how to react, our report shows the benefits of going solar. (See Exhibit 2.)

1. Electricity savings

Common misconception is that green investments do not bring visible profits. However, solar includes return on investment from energy savings. Electricity price is increasing by 12.8% per year. (See Exhibit 3.) Therefore, installing solar may become a hedging against this risk. As a result, solar projects may experience up to 20% IRR (internal rate of return.) (See Case Study: A Clothing Manufacturer in Central Java, Indonesia)

2. Environment

Global warming is a widespread topic. If this continues, we may see the temperature rising by 4°C in the next 200 years.³ Likewise, Greenland lost 281 billions tons of ice per year.⁴ A major cause of this issue is CO2 emission from conventional energy sources, such as coal. By comparison, solar emits significantly less CO2. (See Exhibit 4.)

3. Regulation alignment

Kepmen ESDM 1567 K/21/MEM/2018. Indonesian Ministry of Energy and Mineral Resources supports the adoption of renewable energy while aiming to avoid the reliance on conventional energy sources.

Peraturan Direksi PT. PLN 0733.K/DIR/2013. Indonesian government has instructed State Electricity Company (PT. PLN) to allow “energy export.” Basically, it allows building owners to sell their solar energy surplus to PLN. This is a great scheme for solar owners, as their surplus energy production is not wasted when unused.

4. Warranty

Many solar installers simply build the project, then stop caring about it once they get paid. However, Inspecro treats each project as a continuing relationship over its lifetime. Therefore, as long as they are not due to the consumer’s errors or force majeure events, we assist in solving technical related problems during the 25 years of lifetime.

For an example of our work, visit our Case Study.


¹ International Renewable Energy Agency, “Renewable Capacity Statistics 2018,” 2018.

² Extrapolated from the temperature increasing by 1°C in the last 50 years. NASA, Goddard Institute for Space Studies.

³ NASA, “Ramp-Up in Antarctic Ice Loss Speeds Sea Level Rise,” 2018.

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