Indonesia Solar Energy Market to Reach 1,690.7 GWh by 2033 | 12.5% CAGR | Get Free Sample Report

Indonesia Solar Energy Market Report

According to IMARC Group's report titled "Indonesia Solar Energy Market Size, Share, Trends and Forecast by Technology, Application, and Region, 2025-2033" the report offers a comprehensive analysis of the industry, including market share, growth, trends, and regional insights.

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Indonesia Solar Energy Market Overview

The Indonesia solar energy market size reached 532.4 GWh in 2024 and is projected to reach 1,690.7 GWh by 2033. The market is expected to grow at a CAGR of 12.5% during the forecast period from 2025 to 2033. The growth is driven by increasing government support for renewable energy, declining costs of solar technology, and rising demand for clean and sustainable energy.

Indonesia Solar Energy Market Key Takeaways

• Current Market Size : 532.4 GWh in 2024
• CAGR : 12.5% (2025-2033)
• Forecast Period : 2025-2033
• Growth is supported by grid parity achievement, increasing energy security, and advancements in solar technology.
• Rising implementation of supportive policies and incentives by the Indonesian government.
• Expanding rural electrification initiatives and climate change mitigation goals.
• Decreasing costs of solar panels and equipment enhance market affordability.
• Increasing electricity demand due to rising population and economic development.
• Investment projects in integrated solar and energy storage systems augment market expansion.

Indonesia Solar Energy Market Growth Factors

The market for solar energy in Indonesia is analyzed with regard to its market segmentation and its growth potential. Indonesia has large solar energy potential, growing energy demand, as well as a focus on reducing carbon emissions. Major factors driving the Indonesia solar energy market growth include energy diversification and decreasing dependency on fossil fuel resources such as coal and oil. This has been mainly due to policy support such as National Energy Policy, solar power project subsidies policy, and providing incentives for new and existing solar power projects. Also, rising awareness of environmental concerns and the advantages of renewable energy is driving the market across all industries.

The growing deployment of solar projects by domestic and international players is the primary factor, along with the untapped potential of rural and remote regions. Solar innovation and scale is also the outcome of developing solar energy networks and products that are affordable. These activities and collaboration by different stakeholders such as the governments, private sectors, and research institutes would help to advance the commercialization of solar energy technologies. All these factors would result in a large and promising Indonesia solar energy market with plenty of opportunities for stakeholders to help the country achieve its sustainable energy goals and reach its economic potential.

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Indonesia Solar Energy Market Trends

The growth and development of the Indonesia solar energy sector is encouraged by the global renewable energy transition, the development of solar energy technologies, and government policies. The rooftop-mounted segment of the market in particular is growing fast in urban areas, due to lower bills and decreased greenhouse gas emissions. Utility-scale solar farms have also been built, taking advantage of Indonesia's large amount of sunlight, producing important amounts of power. Use of floating solar panels has been increasing, particularly in places where land is a premium, and is also used in some electric power plants. Essentially, improvements in the efficiency of solar panels and energy storage systems are making solar power more efficient and effective to use.

Smart grid technologies are also improving energy distribution and management of solar power systems. Along with off-grid solar systems, which power unelectrified areas, another major driver of solar energy growth is the increasing use of public-private partnerships (PPP) in the renewable energy sector, which connects government agencies, private sector companies and international organizations to drive solar energy initiatives in many countries. These trends indicate a market oriented towards the global sustainable development goals and Indonesia's energy needs.

Indonesia Solar Energy Market Segmentation

Breakup by Technology:

• Solar Photovoltaic (PV): Driven by government incentives, declining costs, and rooftop solar potential of 32.5 GW with household sector holding 72% share.
• Concentrated Solar Power (CSP): Supported by high solar irradiance, CSP provides stable dispatchable power with thermal energy storage enhancing grid reliability.

Breakup by Application:

• On-grid: Preferred for industrial growth and urbanization, with government policies supporting integration into national electricity grid.
• Off-grid: Important for remote and rural areas lacking grid access, supported by government incentives for rural electrification.

Indonesia Solar Energy Market Regional Insights

• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others

Java dominates the market due to high electricity demand from dense population and urbanization, supported by government incentives. The solar energy market in Indonesia is forecast to grow at a CAGR of 12.5% from 2025-2033.

Indonesia Solar Energy Market Key Players

• PT. Solardex Energy Indonesia
• PT. Sumber Energi Sukses Makmur
• PT. Sumber Energi Surya Nusantara
• SUN Energy
• Trina Solar Co. Ltd.

Indonesia Solar Energy Market Recent Developments & News

• In July 2025, Indonesian government announced plans for a new presidential regulation to promote solar power plants in rural villages, aiming to invest approximately USD 100 billion in about 80,000 village cooperatives.

• In June 2025, LONGi launched a solar panel manufacturing facility in West Java with a 1.6 GW annual capacity using advanced HPBC 2.0 technology.

• Also in June 2025, Indonesia inaugurated PT Trina Mas Agra Indonesia's largest solar panel factory with 1 GW production capacity annually.

• In May 2025, RGE and TotalEnergies signed a co-investment agreement for a solar PV power plant with battery energy storage in Riau Province aiming to supply green energy domestically and for export.

• In March 2024, PT PLN and China Energy Engineering Group signed a Joint Development Study Agreement for green energy projects in Sulawesi.

• In November 2023, an Indonesian renewable energy firm planned $9 billion solar power plants near Batam to supply Singapore low-carbon electricity by 2027.

• In August 2023, Sinar Mas partnered with Trina Solar to develop Indonesia's first integrated solar cell and module manufacturing plant.

Indonesia Solar Energy Market Key Highlights of the Report

• Comprehensive quantitative analysis of market segments and historical trends from 2019-2033.
• Detailed forecast of market growth, drivers, challenges, and opportunities.
• Porter's five forces analysis assessing industry competitiveness and market attractiveness.
• Competitive landscape analysis with profiles of major local and international players.
• Segmented data by technology and application for in-depth understanding.
• Insights into government policies, technological advancements, and investment landscape.

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