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New rules expected to boost solar panel manufacturing
A recently issued regulation aims to spur demand for rooftop photovoltaic (PV) systems and thereby nurture a domestic solar panel manufacturing industry.
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A farmer brushes dust of a solar panel installed in his field in the Karanganyar subdistrict of West Java in November 2020. (Antara/Dedhez Anggara)
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recently issued regulation aims to help Indonesia reach its renewable energy targets and nurture a domestic solar panel manufacturing industry by incentivizing the adoption of rooftop photovoltaic (PV) systems.
Indonesian Solar Energy Association (AESI) chairman Fabby Tumiwa said the new rules on rooftop solar panels would stoke demand for rooftop PV panels and thereby spur the growth of the PV manufacturing industry in Indonesia.
“A minimum market of 500 megawatts per year is needed for the solar cell and module industry to be sustainable,” he told The Jakarta Post on Tuesday.
Energy and Mineral Resources Ministry Regulation No. 26/2021 on rooftop solar panels – issued on Aug. 20 and published on government website peraturan.go.id – is aimed at achieving the targeted 3.6 gigawatts of installed rooftop solar power capacity by 2024, a target included in the national strategic projects (PSN).
The energy ministry’s renewables director general, Dadan Kusdiana, said the 3.6 GW target was aimed at “opening up” the domestic market, as it would increase investment in the upstream and laminating industry.
“As of now, there are approximately 22 to 26 solar panel manufacturers with a total capacity of 500 MW,” he said in a virtual press conference set up by the energy ministry on Aug. 27.
Read also: Indonesia needs renewable energy law to pave way for cleaner energy
