Analysis of perceptions towards the rooftop photovoltaic solar system policy in Indonesia

Abstract

In 2018, the Indonesian government issued the Rooftop Photovoltaic Solar Systems (RPVSS) policy that allows customers of the State Electricity Company (PLN) to generate their own electricity supply from solar photovoltaic (PV) systems and export surplus electricity to the national grid, valued at 65% of the full retail tariff. This policy is an effort to increase renewable energy levels in the national energy mix by 23% by 2025. Customer adoption of PV systems relies on the perceptions and perceived benefits of the technology, as well as general issues of confidence in the product. This paper explores the public's acceptance of the RPVSS policy from multiple perspectives. An online survey of PLN customers (n = 987) indicated consumer issues in adopting PV systems, such as high capital costs, long term return on investment and lack of information, as well as institutional issues such as the limited role of PLN and the absence of government financing mechanisms. Additional interviews with the government, private sector and energy experts identify the export rate for electricity injected into the grid as the main barrier to attracting prospective users. This paper's findings provide useful recommendations for policymakers to successfully implement the policy and increase solar energy deployment.