Indonesia targets to cut off coal usage and become a carbon-neutral country by 2060. Currently, Indonesia is highly dependent on coal, and to transform, it needs to shift to renewables.
Mr. Aji Tri Atmojo lives in a conventional house made with wooden walls in the suburbs of Jakarta, Indonesia. He installed solar panels on the roof of his home to give it a modern touch with a cost of $943 or 10 million rupiahs. His monthly bill is halved since then and in 5 years of the installation, it should break even.
“Because nearly all electricity generation in Indonesia… comes from coal. This way (my family) can reduce greenhouse gas emissions,” Mr. Aji said.
There is an abundance of sunshine as Indonesia is covered with 17,000 islands but it still comes last when it comes to solar power capacity. But demand for solar energy is picking up in the country to have an environment-friendly approach.
It is said that there will be more solar installations in the coming 5 years. Between the end of 2018 to November 2021, rooftop solar saw a more than seven-fold rise (around 4500) with 44 MW installed capacity from 1.5 MW. It is expected that 1000 MW capacity solar panels will be installed in next year and it will rise between 3000-5000 MW per year in 2025 start.
Mr. Amarangga Lubis, the co-founder of engineering, procurement, and construction (EPC) firm SolarKita, said, “People are becoming more aware about the importance of renewable energy. Since the pandemic, the work from home culture has been established and electricity needs at home are rising. People will be pickier and they will invest in things that are more beneficial” for the environment”
Coal power supplies 60% of the country’s energy needs (73,000 MW capacity) and 180 MW capacity of solar (rooftop solar PV cells and solar farms). But the potential of Indonesia is 400,000 MW of solar power.
Solar panel leasing is making people invest in solar by making it affordable. The solar installation was 10 times more costly than it is now. Changes in regulations by the government are another factor.
It is anticipated that at least 2% of 77 million households will have solar PV cells in the coming 3-5 years. This will cut down carbon emissions.