Indonesia solar panel electricity price

How much do solar panels cost in Indonesia?

Across the world, the cost of solar panels is declining, and Indonesia is no different. The price of solar modules dropped from USD 4.12 per watt in 2008 to USD 0.17 per watt in 2020. This translates to lower costs for solar energy, which are around USD 0.04 per kWh.

How much solar power does Indonesia have?

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%.

Why is solar energy important in Indonesia?

The economic aspect of solar energy, particularly the cost of solar panels, plays a critical role in its adoption. This price reduction is crucial for the decarbonisation of Indonesia’s energy sector and signifies solar power’s role in the global climate transition.

What is Indonesia's solar energy plan?

This progress is part of Indonesia’s solar energy plan, which targets 5 GW of installed capacity by 2030. The growth of solar power in Indonesia reflects not just a commitment to shift away from its fossil fuel-dominated energy system but also recognises the immense potential the solar energy holds in the Indonesian archipelago.

How much does electricity cost in Indonesia?

"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.

Can Indonesia increase installed solar capacity?

Despite the challenges, Indonesia still has the potential to increase installed solar capacity. 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).