The Indonesia solar energy market size reached 532.4 GWh in 2024 and is projected to reach 1,690.7 GWh by 2033, demonstrating a robust CAGR of 12.5% during 2025-2033. This growth is driven by grid parity achievement, rising energy security, technological advances in solar energy, climate change mitigation initiatives, and increased rural electrification. The market encompasses solar photovoltaic (PV) and concentrated solar power (CSP) technologies, catering to on-grid and off-grid applications across key regions like Java, Sumatra, Kalimantan, and Sulawesi. The report presents a thorough review featuring the Indonesia solar energy market analysis, growth, share, trends, and research of the industry.
Indonesia Solar Energy Market Key Takeaways
- Current Market Size: 532.4 GWh (2024)
- CAGR: 12.5% (2025-2033)
- Forecast Period: 2025-2033
- The Indonesian solar energy market growth is propelled by supportive government policies, decreasing solar technology costs, and rising electricity demand.
- Increasing investments in solar projects reflect the nation’s commitment to reducing greenhouse gas emissions and enhancing energy security.
- Expansion of rooftop solar PV and large-scale solar installations drive technological adoption.
- Regulatory frameworks and incentives catalyze the solar energy market despite challenges like grid infrastructure limitations.
Indonesia Solar Energy Market Growth Factors
The Indonesian solar energy market is significantly driven by the government's rising implementation of supportive policies and incentives. These are aimed at promoting renewable energy to reduce greenhouse gas emissions and increase energy security nationwide. An example includes the 2024 amendment to the Energy and Mineral Resources Ministerial Regulation No. 26/2021, which removed previous caps on solar PV installations in the household sector, allowing greater penetration of solar technology.
Decreasing costs of solar technology, including panels and related equipment, enhance affordability and attractiveness. These cost reductions are coupled with substantial technological advancements, enabling wider adoption for both residential and large-scale projects. An illustration is Lazada Indonesia’s 2023 initiative to install solar panels generating over 555,000 kWh annually at its logistics hub, showcasing increasing corporate commitments to sustainable energy usage.
Rising electricity demand, fueled by population growth and economic progress, necessitates alternative clean energy sources like solar power. Energy consumption per capita and total subsidies have increased markedly over recent years, underscoring the urgent need for sustainable solutions. Moreover, a surge in private and public investment projects, including Indonesia's first integrated solar and energy storage project, further galvanizes market expansion.
Indonesia Solar Energy Market Trends
Key trends in the Indonesia solar energy market include rapid expansion of solar photovoltaic (PV) installations and widespread adoption of rooftop solar systems, largely driven by government incentives and declining technology costs. Increasing investment in large-scale solar projects reflects the country’s commitment to boosting renewable energy capacity.
The government is actively supporting renewable energy targets through amended regulations and infrastructure projects such as Indonesia’s largest floating solar power plant at Cirata, inaugurated in 2023. This plant serves growing green energy industry demands, a sign of rising market maturity.
Additionally, integration of hybrid power plants that combine solar with wind or hydro sources, and smart grid technologies, is gaining traction. These innovations contribute to grid stability and energy reliability. The trend toward decentralized solar projects, rural electrification with off-grid solutions, and international collaborations for exporting green energy further underscore the dynamic evolution of the Indonesian solar market.
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Indonesia Solar Energy Market Segmentation
Breakup By Technology
- Solar Photovoltaic (PV): Supported by government incentives, decreasing costs, and expanding demand. Rooftop solar PV has a high potential capacity (32.5 GW) with significant household sector involvement.
- Concentrated Solar Power (CSP): Driven by government renewable targets, high solar irradiance, cost improvements, and ability to store thermal energy addressing grid reliability.
Breakup By Application
- On-grid: Favored by policies supporting integration into the National Grid, industrial growth, urbanization, environmental concerns, and improved grid infrastructure.
- Off-grid: Driven by needs in remote/rural areas for reliable power, energy independence pushes, reduced diesel reliance, and rural electrification incentives.
Regional Insights
- Java: Leading due to dense population, urbanization, government incentives, favorable solar potential, and environmental awareness.
- Sumatra: Holds untapped solar potential with emphasis on off-grid solutions and carbon emission reduction efforts.
- Kalimantan: Benefits from government solar power projects including 50 MW plant for national capital, decreasing technology costs, and solar radiation advantage.
- Sulawesi: Growing due to strong solar irradiance, environmental concerns, increasing off-grid demand, and initiatives to reduce emissions.
- Others: Included in overall market analysis but not individually detailed.
Indonesia Solar Energy Market Regional Insights
- Java
- Sumatra
- Kalimantan
- Sulawesi
- Others
The dominant region is Java, driven by high electricity demand, rapid urbanization, and strong government support, contributing significantly to market growth. The market maintains a consistent CAGR of 12.5%, reflecting broad regional adoption and expansion.
Indonesia Solar Energy Market Recent Developments & News
- In July 2025, the Indonesian government announced plans for a new presidential regulation to develop solar power plants in 80,000 village cooperatives with a USD 100 billion investment, boosting rural solar infrastructure.
- In June 2025, LONGi launched a solar panel manufacturing facility in West Java with a 1.6 GW annual capacity using Hybrid Passivated Back Contact technology.
- Also in June 2025, Indonesia inaugurated PT Trina Mas Agra Indonesia, its largest solar panel manufacturing plant producing 1 GW annually, supporting the 17.1 GW solar power target by 2034.
- In May 2025, RGE and TotalEnergies began a co-investment to develop a solar PV power plant with battery storage in Riau Province for domestic use and export to Singapore.
- Earlier in 2024, PT. PLN and China Energy Engineering Group signed an agreement to explore green energy capacities in Sulawesi.
- In November 2023, a $9 billion solar project near Batam is set to commence, aiming to supply low-carbon power to Singapore by 2027.
- In August 2023, Sinar Mas partnered to develop Indonesia's first integrated solar cell and module manufacturing plant.
Key companies include:
- PT. Solardex Energy Indonesia
- PT. Sumber Energi Sukses Makmur
- PT. Sumber Energi Surya Nusantara
- SUN Energy
- Trina Solar Co. Ltd.
Indonesia Solar Energy Market Key Highlights of the Report
- Comprehensive quantitative analysis of the Indonesia solar energy market from 2019 to 2033.
- Insights into key drivers, challenges, and opportunities shaping market dynamics.
- Detailed segment-wise historical and future forecasts by technology and application.
- Porter’s five forces analysis to evaluate competitive intensity and industry attractiveness.
- In-depth competitive landscape profiling for strategic market positioning.
- Extensive regional analysis covering major Indonesian territories.
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