Indonesia’s Rooftop Solar Growth Hindered by Regulatory Challenges

A recent study published in ‘Sustinere: Journal of Environment and Sustainability’ sheds light on the regulatory landscape surrounding rooftop solar power in Indonesia and its connection to consumer behavior that favors environmentally friendly practices. The research, led by Appin Purisky Redaputri from the Department of Management at Universitas Bandar Lampung, highlights Indonesia’s ambitious renewable energy goals, which aim for a 23% share by 2025 and 31% by 2050, as outlined in the National Energy Plan.

Despite these targets, the study reveals that progress in expanding rooftop solar installations is lagging. The research emphasizes the importance of pro-environmental behavior (PEB) among consumers in promoting the adoption of rooftop photovoltaic (PV) systems. The findings suggest that these systems not only have the potential to provide significant economic benefits through cost savings for consumers but are also supported by existing regulations.

However, businesses in the sector express concerns regarding the pace of regulatory revisions necessary to stimulate investment and increase installed solar capacity. “Some businesses feel that the government needs to expedite revising relevant regulations to address investment stagnation and installed solar panel capacity,” the study notes. This sentiment reflects a broader concern that delays in policy updates could hinder the growth of rooftop solar enterprises and impede the achievement of national capacity targets.

The research also points to the influence of psychological and social factors on consumer behavior, which can significantly impact the adoption of rooftop PV systems. As regulations evolve, they could either bolster or challenge the momentum toward greater consumer engagement in renewable energy practices.

For commercial sectors involved in renewable energy, this study underscores an opportunity to advocate for more streamlined regulatory processes that could facilitate investment in rooftop solar technologies. By aligning with the growing trend of pro-environment consumer behavior, businesses can position themselves strategically within a market that is likely to expand as public awareness and regulatory frameworks develop.

Overall, the findings from this research highlight that while there are economic incentives for adopting rooftop solar, the regulatory environment and consumer attitudes will play critical roles in shaping the future of Indonesia’s renewable energy landscape.

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