IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v9y2021i4p192-d695788.html
   My bibliography  Save this article

The Analysis of Residential Rooftop PV in Indonesia’s Electricity Market

Author

Listed:
  • Fajar Nurrohman Haryadi

    (PLN Research Institute, PT. PLN (Persero), Jakarta 12760, Indonesia)

  • Dzikri Firmansyah Hakam

    (PLN Research Institute, PT. PLN (Persero), Jakarta 12760, Indonesia
    Institut Teknologi Bandung, School of Business and Management, Bandung 40132, Indonesia)

  • Shochrul Rohmatul Ajija

    (Faculty of Economics and Business, Universitas Airlangga, Surabaya 60115, Indonesia)

  • Arionmaro Asi Simaremare

    (PLN Research Institute, PT. PLN (Persero), Jakarta 12760, Indonesia)

  • Indra Ardhanayudha Aditya

    (PLN Research Institute, PT. PLN (Persero), Jakarta 12760, Indonesia)

Abstract

This study aimed to examine the customer interest in using rooftop PV considering the economic background and customer profile in Indonesia’s electricity market using primary survey data with potential and existing (households and industries) respondents. This research uses logit model regression to analyze the impact of the demographic background of respondents and uses exploratory factor analysis (EFA) to understand the reasons why the existing users utilize rooftop PV at their homes. The results show that education, residence location, and income can positively and significantly affect the probability of using rooftop PV as the source of electricity. Then, there are several factors that influence the use of rooftop PV, such as easily finding it in their area, having concern for the environment, following trends, and loyalty. Some disadvantages of installing rooftop PV are felt by users, such as relatively high installation cost and frequent overheating during usage. Regarding customer satisfaction, most of the respondents from both households and industries answered that they were satisfied with their rooftop’s PV. Consumers say that the benefits they obtain are comparable to the required installation costs, and the majority of consumers also said that the rooftop PV worked well and did not need many repairs every month, so consumers did not need to spend significant money on it.

Suggested Citation

  • 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.
  • Handle: RePEc:gam:jecomi:v:9:y:2021:i:4:p:192-:d:695788
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/9/4/192/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2227-7099/9/4/192/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Truffer, Bernhard & Markard, Jochen & Wustenhagen, Rolf, 2001. "Eco-labeling of electricity--strategies and tradeoffs in the definition of environmental standards," Energy Policy, Elsevier, vol. 29(11), pages 885-897, September.
    2. Severin Borenstein, 2017. "Private Net Benefits of Residential Solar PV: The Role of Electricity Tariffs, Tax Incentives, and Rebates," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 4(S1), pages 85-122.
    3. Henry Kaiser, 1970. "A second generation little jiffy," Psychometrika, Springer;The Psychometric Society, vol. 35(4), pages 401-415, December.
    4. Jayaweera, Nadeeka & Jayasinghe, Chathuri L. & Weerasinghe, Sandaru N., 2018. "Local factors affecting the spatial diffusion of residential photovoltaic adoption in Sri Lanka," Energy Policy, Elsevier, vol. 119(C), pages 59-67.
    5. Karakaya, Emrah & Sriwannawit, Pranpreya, 2015. "Barriers to the adoption of photovoltaic systems: The state of the art," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 60-66.
    6. Chaianong, Aksornchan & Pharino, Chanathip, 2015. "Outlook and challenges for promoting solar photovoltaic rooftops in Thailand," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 356-372.
    7. 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.
    8. Handrea Bernando Tambunan & Dzikri Firmansyah Hakam & Iswan Prahastono & Anita Pharmatrisanti & Andreas Putro Purnomoadi & Siti Aisyah & Yonny Wicaksono & I Gede Ryan Sandy, 2020. "The Challenges and Opportunities of Renewable Energy Source (RES) Penetration in Indonesia: Case Study of Java-Bali Power System," Energies, MDPI, vol. 13(22), pages 1-22, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ryan Wong & Aninda Dewayanti, 2024. "Indonesiaʼs energy transition: Dependency, subsidies and renewables," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 11(2), May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abreu, Joana & Wingartz, Nathalie & Hardy, Natasha, 2019. "New trends in solar: A comparative study assessing the attitudes towards the adoption of rooftop PV," Energy Policy, Elsevier, vol. 128(C), pages 347-363.
    2. Wu, Haixia & Ge, Yan & Li, Jianping, 2023. "Uncertainty, time preference and households’ adoption of rooftop photovoltaic technology," Energy, Elsevier, vol. 276(C).
    3. Wang, Xiaozhen & Zheng, Ying & Jiang, Zihao & Tao, Ziyang, 2021. "Influence mechanism of subsidy policy on household photovoltaic purchase intention under an urban-rural divide in China," Energy, Elsevier, vol. 220(C).
    4. Yamashiro, Ririka & Mori, Akihisa, 2023. "Combined third-party ownership and aggregation business model for the adoption of rooftop solar PV–battery systems: Implications from the case of Miyakojima Island, Japan," Energy Policy, Elsevier, vol. 173(C).
    5. 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).
    6. Apriani Soepardi & Pratikto Pratikto & Purnomo Budi Santoso & Ishardita Pambudi Tama & Patrik Thollander, 2018. "Linking of Barriers to Energy Efficiency Improvement in Indonesia’s Steel Industry," Energies, MDPI, vol. 11(1), pages 1-22, January.
    7. Siwarit Pongsakornrungsilp & Pimlapas Pongsakornrungsilp & Theeranuch Pusaksrikit & Pimmada Wichasin & Vikas Kumar, 2021. "Co-Creating a Sustainable Regional Brand from Multiple Sub-Brands: The Andaman Tourism Cluster of Thailand," Sustainability, MDPI, vol. 13(16), pages 1-23, August.
    8. Carattini, Stefano & Gillingham, Kenneth & Meng, Xiangyu & Yoeli, Erez, 2024. "Peer-to-peer solar and social rewards: Evidence from a field experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 219(C), pages 340-370.
    9. Chetan Doddamani & M. Manoj, 2023. "Analysis of the influences of built environment measures on household car and motorcycle ownership decisions in Hubli-Dharwad cities," Transportation, Springer, vol. 50(1), pages 205-243, February.
    10. Li, Yumin, 2018. "Incentive pass-through in the California Solar Initiative – An analysis based on third-party contracts," Energy Policy, Elsevier, vol. 121(C), pages 534-541.
    11. Brown, David P. & Muehlenbachs, Lucija, 2023. "The Value of Electricity Reliability: Evidence from Battery Adoption," Working Papers 2023-5, University of Alberta, Department of Economics, revised 26 Jul 2024.
    12. Zhang, Minhui & Zhang, Qin & Zhou, Dequn & Wang, Lei, 2021. "Punishment or reward? Strategies of stakeholders in the quality of photovoltaic plants based on evolutionary game analysis in China," Energy, Elsevier, vol. 220(C).
    13. Frank A. Wolak, 2018. "The Evidence from California on the Economic Impact of Inefficient Distribution Network Pricing," NBER Working Papers 25087, National Bureau of Economic Research, Inc.
    14. Lan, Haifeng & Gou, Zhonghua & Yang, Linchuan, 2020. "House price premium associated with residential solar photovoltaics and the effect from feed-in tariffs: A case study of Southport in Queensland, Australia," Renewable Energy, Elsevier, vol. 161(C), pages 907-916.
    15. Ben-Shahar, Danny & Golan, Roni, 2014. "Real estate and personality," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 53(C), pages 111-119.
    16. Cortés-Sánchez, Julián David & Grueso, Merlin Patricia, 2017. "Factor analysis evaluation of Schein's career orientation inventory in Colombia," OSF Preprints jf5nq, Center for Open Science.
    17. Ahmed S. Alahmed & Lang Tong, 2022. "Integrating Distributed Energy Resources: Optimal Prosumer Decisions and Impacts of Net Metering Tariffs," Papers 2204.06115, arXiv.org, revised May 2022.
    18. Nattapan Thanomsat & Boonyang Plangklang & Hideaki Ohgaki, 2018. "Analysis of Ferroresonance Phenomenon in 22 kV Distribution System with a Photovoltaic Source by PSCAD/EMTDC," Energies, MDPI, vol. 11(7), pages 1-24, July.
    19. Siu-Kit Lau & Vesna Kosorić & Monika Bieri & André.M. Nobre, 2021. "Identification of Factors Influencing Development of Photovoltaic (PV) Implementation in Singapore," Sustainability, MDPI, vol. 13(5), pages 1-30, March.
    20. Severin Borenstein & James Bushnell, 2015. "The US Electricity Industry After 20 Years of Restructuring," Annual Review of Economics, Annual Reviews, vol. 7(1), pages 437-463, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:9:y:2021:i:4:p:192-:d:695788. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.