Indonesia Solar Energy Market 2026 | Size, Growth, and Forecast by 2034

IMARC Group, a leading global market research and management consulting firm, has published its latest market intelligence report on the Indonesia Solar Energy Market. The Indonesia solar energy market size was valued at 598.9 GWh in 2025 and is projected to reach 1,711.6 GWh by 2034, exhibiting a CAGR of 12.38% during 2026-2034. Growth is being driven by government incentives, falling solar costs, rising electricity demand, private investment, energy security and climate goals, and progress toward grid parity.

Solar energy in Indonesia spans solar photovoltaic (PV) and concentrated solar power (CSP) across on-grid and off-grid applications, from rooftop systems to utility-scale plants and village mini-grids. Cumulative grid-connected PV capacity was about 1.49 GW at the end of 2025, after roughly 546 MW was added during the year, and the Indonesian Solar Energy Association (AESI) put national capacity at about 1.5 GW in September 2026. At the same time, policy ambition has stepped up sharply, with President Prabowo Subianto setting a target of 100 GW of solar within three years, while the national electricity plan RUPTL 2025-2034 projects about 17.1 GW of additional solar by 2034. Combined with local panel manufacturing, battery storage and village electrification, these forces are reshaping the competitive landscape across Java, Sumatra, Kalimantan, Sulawesi and the rest of the archipelago, while increasing interest in the Solar Energy Indonesia Market Size and its long-term growth potential.

Indonesia Solar Energy Market at a Glance:

• Market Size (2025): 598.9 GWh
• Market Forecast (2034): 1,711.6 GWh
• Growth Rate (2026-2034): CAGR of 12.38%
• Base Year: 2025 | Historical Period: 2020-2025 | Forecast Period: 2026-2034

How AI is Reshaping the Future of the Indonesia Solar Energy Market

• Smart Grids and Digital Integration: The report highlights the use of smart grid technologies as a key trend, supporting the integration of variable solar output, alongside hybrid plants that combine solar with wind or hydro.
• Solar Paired With Battery Storage: In January 2025, a 50 MW solar plant with a 14.2 MWh battery was commissioned by NSSE, while the 80 GW decentralized portion of the government's 100 GW program is to be equipped with battery energy storage systems.
• Technology Advances and Lower Panel Prices: The report points to technology advances and lower panel prices as an opportunity. Specific AI deployments in Indonesian solar were not evidenced in the sources reviewed, so the focus here is on grid and storage technology.

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Indonesia Solar Energy Market Trends and Drivers:

Demand is being underpinned by government incentives, falling solar costs and rising electricity demand, with the report also citing private investment, energy security and climate goals, and progress toward grid parity. Early 2024 saw an amendment to ESDM Ministerial Regulation 26/2021 that removed the 10 to 15 percent cap on PLN household solar PV installations, and rooftop demand has been strong, with AESI reporting in September 2026 that the January 2026 rooftop quota of 485 MW had been fully taken up.

The market's structural differentiator is the scale of the new national program. In July 2026, Energy and Mineral Resources Minister Bahlil Lahadalia said the first phase of the 100 GW solar program had been approved and would soon enter construction. The program envisions 80 GW of decentralized solar with battery storage across about 80,000 villages, delivered through village cooperatives, and 20 GW of centralized solar, with Danantara as the main investment vehicle. Manufacturing is also scaling, with the report citing a 1.6 GW LONGi and Pertamina NRE panel factory and a 1 GW Trina Mas Agra plant, both in 2025.

A third dynamic is execution risk. The report lists regulatory hurdles, limited grid infrastructure and high upfront costs as challenges, and in April 2026 a ministry official described land as a major obstacle, with a survey of 218 candidate locations showing conditions far from ideal. IESR has estimated first-phase investment at USD 140 to 210 billion, and analysts cited by The Star question the timeline given the cooperatives' limited technical expertise and unready domestic manufacturing. Plans to export solar power from Batam to Singapore have also faced financing questions over five-year export permit terms, a dynamic that is set to shape the market over the coming years.

Government Schemes and Policy Frameworks Driving the Market:

• 100 GW Solar Program via Village Cooperatives: First unveiled in August 2025, it targets 100 GW, made up of 80 GW of decentralized solar with storage across about 80,000 villages through the Red and White Cooperatives (KMP) and 20 GW of centralized solar. The first phase was approved in July 2026, with no groundbreaking date given.
• RUPTL 2025-2034: The national electricity plan projects about 17.1 GW of additional solar by 2034, which matches the target cited in the report. Analysts note that the 100 GW program sits well beyond this plan.
• ESDM Regulation 26/2021 Amendment: An early 2024 amendment removed the 10 to 15 percent cap on PLN household solar PV installations, widening room for rooftop solar.
• Village Electrification Program (Lisdes): The program has reached more than 1,400 of about 11,000 villages without electricity, according to the minister, and is meant to complement the 100 GW program.
• Danantara as Investment Vehicle: Investment and Downstream Minister Rosan Roeslani, who is also Danantara CEO, said the program starts with a 13 GW first expansion prioritizing villages with existing distribution infrastructure.

Indonesia Solar Energy Market Industry Segmentation:

The report has segmented the market into the following categories:

Breakup By Technology:

• Solar Photovoltaic (PV)
• Concentrated Solar Power (CSP)

The report covers solar PV and CSP, with falling panel prices and local module manufacturing supporting PV, which accounts for the projects and plants highlighted in recent developments.

Breakup By Application:

• On-grid
• Off-grid

On-grid demand is supported by rooftop quotas and utility-scale projects, while off-grid demand is supported by village mini-grids under the 100 GW program and the Lisdes electrification effort.

Breakup By Region:

• Java
• Sumatra
• Kalimantan
• Sulawesi
• Others

The report analyzes demand across Java, Sumatra, Kalimantan, Sulawesi and the rest of Indonesia, with a village solar prototype operating in Sumenep Regency in East Java and solar export plans centered on the Riau Islands.

Competitive Landscape:

The report names the following among its key players in the Indonesia solar energy market (partial list):

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

Recent developments involve LONGi and Pertamina NRE, which launched a 1.6 GW panel factory in Deltamas in June 2025, PT Trina Mas Agra Indonesia 1, whose 1 GW plant was inaugurated in June 2025, and RGE and TotalEnergies, which announced a co-investment in solar PV plus battery storage in Riau in May 2025. Market shares and a concentration analysis were not available.

What Does The Full Report Cover?

• Historical, current, and forecast market size for the Indonesia solar energy market from 2020 to 2034, in GWh
• Market breakup by technology, application, and region
• Regional analysis covering Java, Sumatra, Kalimantan, Sulawesi, and Others
• Key growth drivers, challenges, and opportunities shaping the market
• Porter's Five Forces analysis and value chain assessment
• Competitive landscape, market structure, and player positioning
• Detailed profiles of major solar energy companies operating in Indonesia

Recent News and Developments in the Indonesia Solar Energy Market

• January 2025: NSSE commissioned a 50 MW solar plant with a 14.2 MWh battery.
• May 2025: RGE and TotalEnergies announced a co-investment in solar PV plus battery storage in Riau.
• June 2025: LONGi and Pertamina NRE launched a 1.6 GW solar panel factory in Deltamas, and PT Trina Mas Agra Indonesia 1 inaugurated a 1 GW panel plant.
• July 2025: The government proposed a presidential regulation for solar plants in about 80,000 village cooperatives, with roughly USD 100 billion of investment.
• March 2026: SMM reported that Batam-to-Singapore solar export plans, aiming for up to 3.4 GW by 2028, were stalled over lenders' objections to five-year export permits, while IESR estimated first-phase investment for the 100 GW program at USD 140 to 210 billion.
• April 2026: A ministry official said land acquisition remained a major obstacle for the solar program, with a survey of 218 locations showing difficult conditions.
• July 2026: Minister Bahlil Lahadalia said the first phase of the 100 GW solar program had been approved and would soon enter construction.
• September 2026: AESI reported national solar capacity of about 1.5 GW, with the January 2026 rooftop quota of 485 MW fully taken up.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

Key Questions This Report Answers

• How big is the Indonesia solar energy market and what is its growth outlook through 2034?
• What are the key growth drivers, challenges, and opportunities in the Indonesia solar energy market?
• Which technology and application segments are driving the market?
• How are the 100 GW solar program, RUPTL targets, and rooftop regulations shaping demand?
• Which regions across Indonesia are contributing most to market growth?
• Who are the key players in the Indonesia solar energy market, and how is the competitive landscape evolving?
• What role are battery storage, smart grids, and local manufacturing playing in the future of Indonesian solar energy?

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