Techno-Economic of Photovoltaic Rooftop in Indonesia for Commercial and Residential Customer

Abstract

Despite the high solar energy potential in Indonesia, the number of installed photovoltaic (PV) rooftop is relatively small. To improve the development, the Indonesian government initiate some regulations such as the Ministry of Energy and Mineral Resources (MEMR) policy No. 49/2018 that advertised the 65% incentive and No.16/2019 that remove the cost for parallel capacity and parallel operation for industry customers. However, the number is still far away from the target set by the government. By calculating the techno-economic parameters based on the MEMR tariff regulation No.28/2016 and the Incentive given by the government as per regulation MEMR policy No.49/2018, this paper aims to shows the implementation of the regulation for two different tariff groups such as commercial and residential so that it can be used as a references to improve the policy and PV rooftop development. The result shows that even though the PV rooftop can reduce the electricity cost with saving rate 16.02% for residential and 23% for commercial, the high investment cost with estimate value of IDR 9 M for residential and IDR 360M for commercial, payback in 9 years and a 5.5% return on investment is not so attractive compared to the electricity price from the utility without installing PV. Thus, there should be an improvement on the incentive or policy to increase the number of PV rooftop for commercial and residential tariff group.