Report Overview

Rising demand for solar energy generation and rapid industrialization and urbanization are projected to propel the expansion of Indonesia floating solar panels market during the forecast period between 2023 and 2029.

Indonesia Floating Solar Panels Market - Industry Trends & Forecast Report, 2029

Indonesia floating solar panels market size is expected to expand at a CAGR of 10.15% during the forecast period between 2023 and 2029. Major growth drivers for Indonesia floating solar panels market include government’s supportive policies and regulations, the availability of suitable water bodies, and surging demand for renewable energy sources. The Indonesian government has set a target of generating 23% of the country's electricity from renewable sources by 2025. This target is expected to drive the growth of the floating solar panels market in Indonesia as the government encourages the use of renewable energy sources, including solar power. Likewise, Indonesia has many large rivers, lakes, and reservoirs that can be used for floating solar projects. However, the availability of suitable water bodies can vary depending on location, and the installation of floating solar panels can also have environmental impacts, so careful consideration must be given to site selection. Another notable factor for floating solar panel market expansion is the surging demand for renewable energy sources, including solar power, is growing in Indonesia as the country seeks to reduce its dependence on fossil fuels and mitigate the impacts of climate change. Hence, this demand is expected to drive investment in the floating solar panels market. Also, increasing technological advancements are making floating solar panels more efficient and cost-effective, which is expected to drive the growth of the market in Indonesia.

Indonesia Floating Solar Panels Market – Overview

The floating solar panels market in Indonesia was still in its early stages but is gaining traction. The Indonesian government had expressed interest in promoting renewable energy, including solar power, as a means to reduce the country's dependence on fossil fuels and meet its energy needs. Floating solar panels, which are installed on bodies of water, are a particularly attractive option in Indonesia because the country has many large rivers, lakes, and reservoirs that can be used for this purpose. In addition to generating electricity, floating solar panels can help reduce water evaporation and improve water quality. Some companies have already started to invest in floating solar projects in Indonesia. For example, in 2019, PT Pembangkit Jawa Bali (PJB), a subsidiary of state-owned electricity company PT PLN, installed a 1.5 MW floating solar power plant on the Cirata Reservoir in West Java. The project was Indonesia's first floating solar power plant and was expected to generate enough electricity to power around 1,400 homes. Overall, the floating solar panels market in Indonesia has significant potential for growth as the country seeks to increase its use of renewable energy sources.

Indonesia Floating Solar Panels Market

Growth Drivers

Growing Demand for Energy from Renewable Sources

The rising demand for clean energy generation is expected to boost the expansion of the floating solar panels market in Indonesia. Indonesia, like many other countries around the world, is facing a growing need for sustainable and clean energy solutions. The Indonesian government has set ambitious targets to increase the share of renewable energy in the country's energy mix, including a target of 23% renewable energy by 2025. Floating solar panels are an attractive option for Indonesia because the country has many large rivers, lakes, and reservoirs that can be used for this purpose. Floating solar panels can generate clean energy without taking up valuable land space and have additional benefits such as reducing water evaporation and improving water quality. Moreover, floating solar panels are becoming more cost-effective due to technological advancements and economies of scale, which is making them an increasingly attractive investment option. As the demand for clean energy grows in Indonesia and the cost of floating solar panels continues to decrease, we can expect to see significant expansion in the floating solar panels market in the country.

Restraints

Fluctuations in Raw Materials Prices

Fluctuating raw material prices can hinder the growth of the floating solar panels market in Indonesia. Raw materials, such as silicon, glass, and aluminum, have a significant impact on the overall cost of producing and installing floating solar panels. Variations in prices can be caused by several factors like supply chain disruptions, changes in demand, or geopolitical tensions, making it challenging for manufacturers and installers to manage costs and offer competitive pricing. Since the floating solar panels market in Indonesia is still in its early stages, it may be more vulnerable to fluctuations in raw materials prices than established markets. This vulnerability can be further compounded by other factors such as currency fluctuations, import/export regulations, and changes in government policies and incentives. Manufacturers and installers may need to explore alternative materials, diversify their supply chains, or adopt new business models to mitigate the risks associated with fluctuating raw material prices.

Impact of COVID-19 on Indonesia Floating Solar Panels Market

COVID-19 had a detrimental impact on the floating solar panels market in Indonesia by disrupting supply chains, causing project delays, and creating uncertainty in the market. The closure of businesses and restrictions on movement have slowed project development, while the economic downturn has reduced investment in renewable energy projects. Despite these challenges, the pandemic has highlighted the importance of sustainability, and this could drive demand for floating solar panels in the long term. The focus on building a more sustainable future could provide opportunities for the floating solar panels market in Indonesia as the world recovers from the pandemic.

Indonesia Floating Solar Panels Market

Segmental Coverage

Indonesia Floating Solar Panels Market – By Type

By type, Indonesia floating solar panels market is bifurcated into Stationary Floating Solar Panels and Solar-Tracking Floating Solar Panels segments. The stationary floating solar panels segment held a higher market share in 2022. Stationary floating solar panels are easy to deploy on water bodies like reservoirs or lakes and also provide shade, reducing water evaporation. These panels use low-cost, high-strength elastic materials, making them cheaper to install than tracking floating solar panels. Increasing investments in solar panel manufacturing and installation in developing countries are expected to boost demand in the future due to the reliable and long-lasting nature of solar tracking technology with lower maintenance costs.

Indonesia Floating Solar Panels Market – By Capacity

By capacity, Indonesia floating solar panels market is segmented into Up to 1MW, 1MW–5MW, and More than 5MW.

Indonesia Floating Solar Panels Market – By Connectivity

Based on connectivity, Indonesia floating solar panels market is divided into On-Grid and Off-Grid segments.

Competitive Landscape

Major players operating in Indonesia floating solar panels market include Hanwha SolarOne, Sharp Corporation, Canadian Solar Inc., Sun Power Corporation, REC Solar Holdings AS, SolarWorld Americas Inc., Panasonic Electric Works Europe AG, Ciel & Terre International, and Solaris Energy Inc. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Type

• Stationary Floating Solar Panels

• Solar-Tracking Floating Solar Panels

By Capacity

• Up to 1MW

• 1MW–5MW

• More than 5MW

By Connectivity

• On-Grid

• Off-Grid