Solar Panel Installation in Industrial Sector Boosts Product Competitiveness

Jakarta (ANTARA) - The Head of Electricity and Energy Storage at the Institute for Essential Services Reform (IESR), His Muhammad Bintang, stated that the installation of solar power plants (PLTS) for the commercial and industrial sectors plays a role in increasing product added value and competitiveness. “PLTS also has benefits in increasing added value and product competitiveness in a market that is increasingly prioritising sustainability aspects,” Bintang said during an online media briefing for the Indonesia Solar Summit 2026 in Jakarta on Thursday. He noted that IESR has observed an increase in demand for PLTS installation over the past three years from multinational companies, driven by corporate commitments and carbon border adjustment mechanism (CBAM) regulations based on greenhouse gas emissions. The use of PLTS, particularly in the mining industry since 2015 with off-grid implementation using batteries, has become a more economical option driven by the low cost of batteries, compared to diesel power plants that use fuel oil. Furthermore, PLTS with batteries can supply 70 to 80 percent of the off-grid electricity needs of the mining industry. “While it is true that 60 percent of rooftop PLTS customers are residential, in terms of capacity, the small number of industrial customers actually installs a much larger share, around 80 percent if I am not mistaken,” he said. Bintang added that domestic industrial companies are also beginning to look at PLTS, for example in the cement industry sector, for both rooftop and ground-mounted installations. Meanwhile, not only in industry, the use of PLTS in communal or residential settings is also in demand. In 2025, interest in rooftop PLTS installed on homes and public buildings grew significantly, contributing around 45 percent to the national increase in PLTS usage and producing 1.2 terawatt-hours of electricity from 11,000 customers. PLTS installation is also sought after primarily for reducing electricity bills by up to 50 percent and is considered a long-term investment as the payback period is no more than 15 years. “Under current conditions, there is a possibility that electricity tariffs will increase, and this tariff increase will certainly affect the value of the benefits of PLTS, which will rise,” he said. However, there are several challenges that need government attention regarding the use of PLTS in the community, namely the availability of operators who can perform maintenance and a maintenance scheme that is mutually acceptable to the public. Bintang said PLTS could be a technological solution to support the diesel phase-out programme and encourage electrification, as well as enhance energy resilience, which could be a focus for the government in its diesel phase-out efforts.