Dublin, Jan. 20, 2026 (GLOBE NEWSWIRE) -- The "Indonesia Solar Energy - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The Indonesia Solar Energy Market is projected to expand significantly, growing from 2.15 gigawatt in 2025 to 2.97 gigawatt in 2026, and further reaching 14.91 gigawatt by 2031, boasting a compound annual growth rate (CAGR) of 38.10% from 2026 to 2031. This growth trajectory is spurred by Jakarta's strategic pivot from diesel subsidies to photovoltaic systems and PLN's commitment to substantial solar capacity, reflected in its RUPTL 2025-2034 blueprint, indicating a shift from coal-based energy.
Key market developments include a substantial fall in module prices by 50% in 2024, normalization of shipping costs, and competitive EPC bids meeting PLN's tariff ceilings. This has driven the market below grid-parity levels in high-irradiance regions, while corporate renewable-power purchase agreements have surged, with manufacturers in Java and Batam securing long-term contracts that assure Scope 2 abatement.
Government Rooftop Incentives Accelerate Distributed Adoption
The implementation of MEMR Regulation 2/2024 introduced a quota system for rooftop solar, enhancing interconnection clarity and ensuring revenue protection for PLN. This has been bolstered by local mandates, such as Jakarta's regulation on new commercial buildings, encouraging widespread solar adoption and developer visibility until 2028. Municipal incentives and fines ensure higher compliance, expanding solar capacity in urban areas.
Module ASP Declines Compress Levelized Costs Below Grid Parity
The decline in polysilicon prices led to reduced module ASPs, with EPC bids falling as low as IDR 1,050 per kWh. Freight cost normalization has further reduced landed costs, pushing levelized electricity costs below traditional coal benchmarks. Despite these favorable conditions, margin pressures persist, necessitating careful timing of order placements by developers.
TKDN Local-Content Mandate Elevates Project Economics
While the TKDN threshold has been reduced, Indonesia's lack of manufacturing infrastructure still leads to higher EPC costs. Delays in commercial operation certifications due to long queue times remain a challenge, unless new factories are operational by 2027.
Other Drivers and Restraints: The report further explores RE100 commitments, diesel displacement benefits, and grid-absorption constraints.
Segment Analysis
Solar PV dominated the Indonesian market in 2025, with a projected CAGR of 38.10% through 2031. As CSP remains commercially unviable, investors continue to focus on crystalline-silicon technologies. Advancements in cell technologies and module energy density are expected to enhance land efficiency, further boosting project returns.
The report segments the market by technology (Solar Photovoltaic and Concentrated Solar Power), grid type (On-Grid and Off-Grid), and end-user (Utility-Scale, Commercial and Industrial, and Residential), with forecasts provided in gigawatts.
Key Topics Covered
1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Supply-Chain Analysis
4.5 Regulatory Landscape
4.6 Technological Outlook
4.7 Porters Five Forces
4.8 PESTLE Analysis
5 Market Size & Growth Forecasts
5.1 By Technology
5.2 By Grid Type
5.3 By End-User
5.4 By Component (Qualitative Analysis)
6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves (M&A, Partnerships, PPAs)
6.3 Market Share Analysis
6.4 Company Profiles
7 Market Opportunities & Future Outlook
7.1 White-space & Unmet-Need Assessment
A selection of companies mentioned in this report includes, but is not limited to:
- PT Surya Utama Nuansa (SUN Energy)
- PT TotalEnergies Eren Indonesia
- PT Sumber Energi Sukses Makmur (SES)
- PT Sumber Energi Surya Nusantara (SESNA)
- PT Solardex Energy Indonesia
- Canadian Solar Inc.
- Trina Solar Co. Ltd.
- LONGi Green Energy Technology Co. Ltd.
- First Solar Inc.
- JA Solar Technology Co. Ltd.
- Risen Energy Co. Ltd.
- PT Len Industri (Persero)
- PT PLN Nusantara Power
- Akuo Energy Indonesia
- ACWA Power Indonesia
- Vena Energy Indonesia
- Masdar Indonesia
- PT Xurya Daya Indonesia
- Enernet Global Indonesia
For more information about this report visit https://www.researchandmarkets.com/r/11g5w4
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