Indonesia’s Industrial Solar PV Adoption Set to Grow, but Costs and Regulation Remain Key Barriers

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Ecobiz.asia – Solar photovoltaic (PV) adoption among Indonesia’s industrial companies is expected to continue growing, although high upfront costs, system reliability and regulatory uncertainty remain key barriers, according to a survey by Petromindo Survey.

The findings were presented by Petromindo Survey researcher Muna Suhailah from the Industrial Solar PV Adoption 2026: Opportunities, Barriers & Outlook survey, conducted from Aug. 24 to Sept. 13, 2026.

The survey gathered responses from professionals in mining, oil and gas, power and electricity, manufacturing and other energy-intensive industries.

It found that 24.75% of respondents’ companies already had operational Solar PV systems, while 32.18% were evaluating adoption and 43.07% had not yet evaluated Solar PV.

Among existing users, most systems were relatively small. More than a quarter had installed systems with capacities below 100 kilowatt-peak (kWp), while only 7.7% had systems exceeding 5 megawatt-peak (MWp).

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Solar PV also currently accounts for a relatively small share of companies’ overall energy consumption. Some 32.5% of existing users said Solar PV met less than 5% of their energy needs.

Emissions and Cost Savings Drive Adoption
Environmental and economic considerations were the main drivers of Solar PV adoption.

Reducing carbon emissions was cited by 50% of respondents, followed by supporting environmental, social and governance (ESG) or net-zero targets at 38%, and reducing electricity costs at 32%.

Existing users also cited lower energy costs and reduced carbon emissions as key benefits, while enhanced corporate image was another benefit reported by more than 40% of respondents.

Overall satisfaction with Solar PV performance was relatively high, with respondents giving an average score of 4.19 out of 5.
However, weather dependence was the most frequently cited challenge among existing users, at 50%, followed by high upfront investment costs at 46%.

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For companies that have not adopted Solar PV, upfront investment costs were the biggest barrier, cited by 43.4% of respondents. Concerns over system performance and reliability followed at 31.6%.

Adoption Plans Remain Cautious
Only 42.8% of non-adopters said they planned to adopt Solar PV, while 57.2% had no plans to do so at this stage.
Among companies currently evaluating Solar PV, 33.9% expected to implement systems within the medium term, defined as three to five years.

For companies that had not yet evaluated Solar PV, more efficient and reliable technology was the leading factor that could increase interest in adoption, cited by 56.3% of respondents. Greater potential for energy cost savings followed at 51.7%.

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Despite the barriers, respondents generally expected the industrial Solar PV market to expand. Moderate growth of 20–50% over the next three to five years was the dominant outlook among respondents.

To accelerate adoption, 47% of respondents identified clearer and more consistent regulations as a key priority, while 44.1% called for lower Solar PV and battery technology costs.

The survey indicates that further growth in Indonesia’s industrial Solar PV market will depend on improvements in project economics, technology performance and regulatory certainty. ***

For more detailed information on the survey findings, please contact Petromindo Survey.

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