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Investigating policies on improving household rooftop photovoltaics adoption in Indonesia

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  • Hidayatno, Akhmad
  • Setiawan, Andri D.
  • Wikananda Supartha, I Made
  • Moeis, Armand O.
  • Rahman, Irvanu
  • Widiono, Eddie

Abstract

Indonesia has an enormous solar energy potential equivalent to 207.8 Gigawatt (GW) of power generation because of its equatorial location. Nevertheless, solar energy development in Indonesia is still considerably low, with no more than 3% of household consumers using solar energy (estimated 2018). Building a large-scale grid-connected photovoltaics (PV) system offers an excellent opportunity to boost solar energy development. However, it requires a considerable investment that the government cannot currently provide. One feasible solution is through the distributed PV system adoption, such as the household rooftop PV. Net metering and net billing have been implemented as policy instruments to increase the household rooftop PV adoption, but their effectiveness was never assessed. Therefore, this study aims to examine the effectiveness of the two policy instruments by analyzing and understanding the dynamic complexity of the household rooftop PV adoption using system dynamics approach incorporated with policy analysis framework. The findings suggest that the net metering is more effective than the net billing in boosting the household rooftop PV adoption. The study also emphasizes the importance of taking a systems perspective to acquire a sufficient understanding of the dynamic complexity of solar energy development for a better evaluation of energy policy.

Suggested Citation

  • Hidayatno, Akhmad & Setiawan, Andri D. & Wikananda Supartha, I Made & Moeis, Armand O. & Rahman, Irvanu & Widiono, Eddie, 2020. "Investigating policies on improving household rooftop photovoltaics adoption in Indonesia," Renewable Energy, Elsevier, vol. 156(C), pages 731-742.
    • Handle: RePEc:eee:renene:v:156:y:2020:i:c:p:731-742
    DOI: 10.1016/j.renene.2020.04.106
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    Cited by:

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    2. Zhang, Haoran & Yan, Jinyue & Yu, Qing & Obersteiner, Michael & Li, Wenjing & Chen, Jinyu & Zhang, Qiong & Jiang, Mingkun & Wallin, Fredrik & Song, Xuan & Wu, Jiang & Wang, Xin & Shibasaki, Ryosuke, 2021. "1.6 Million transactions replicate distributed PV market slowdown by COVID-19 lockdown," Applied Energy, Elsevier, vol. 283(C).
    3. Rahman, Arief & Richards, Russell & Dargusch, Paul & Wadley, David, 2023. "Pathways to reduce Indonesia’s dependence on oil and achieve longer-term decarbonization," Renewable Energy, Elsevier, vol. 202(C), pages 1305-1323.
    4. Fajar Nurrohman Haryadi & Dzikri Firmansyah Hakam & Shochrul Rohmatul Ajija & Arionmaro Asi Simaremare & Indra Ardhanayudha Aditya, 2021. "The Analysis of Residential Rooftop PV in Indonesia’s Electricity Market," Economies, MDPI, vol. 9(4), pages 1-10, December.
    5. Setiawan, Andri D. & Dewi, Marmelia P. & Jafino, Bramka Arga & Hidayatno, Akhmad, 2022. "Evaluating feed-in tariff policies on enhancing geothermal development in Indonesia," Energy Policy, Elsevier, vol. 168(C).
    6. Rizki Firmansyah Setya Budi & Sarjiya Sarjiya & Sasongko Pramoho Hadi, 2022. "The Prospect of Rooftop Photovoltaic Development Considering Global Horizontal Irradiation Uncertainty and Government Policies: A Case of Java Island, Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 104-116, July.
    7. A. K. Pandey & B. Kalidasan & R. Reji Kumar & Saidur Rahman & V. V. Tyagi & Krismadinata & Zafar Said & P. Abdul Salam & Dranreb Earl Juanico & Jamal Uddin Ahamed & Kamal Sharma & M. Samykano & S. K. , 2022. "Solar Energy Utilization Techniques, Policies, Potentials, Progresses, Challenges and Recommendations in ASEAN Countries," Sustainability, MDPI, vol. 14(18), pages 1-26, September.
    8. Wu, Haixia & Ge, Yan & Li, Jianping, 2023. "Uncertainty, time preference and households’ adoption of rooftop photovoltaic technology," Energy, Elsevier, vol. 276(C).

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