INDONESIA SOLAR INVERTER MARKET

Indonesia solar inverter market estimated to grow at a solid CAGR during the forecast period propelled by governmental support, growing electricity needs, along with the decreasing price for solar panels and the equipment.

Major Indonesia Solar Inverter Market Drivers and Emerging Trends

Indonesia solar inverter market remains largely unexplored and is currently in the early stages of development because the energy mix in the country is largely dominated by the coal industry. According to World Population Review, Indonesia had a solar capacity of 291 MW in 2022. Nevertheless, the sector is projected to expand in the near future due to government measures including the commitment to the Paris Climate Agreement and the rollout of the Indonesia Solar Rooftop PV Program. Additionally, the anticipated solar projects like the Malaya plant and the Gorontalo PLTS are expected to significantly boost the need for solar inverters in the nation.

The expansion of Indonesia solar inverter market share has been substantial, driven by the increasing need for renewable energy solutions. To reduce its dependence on conventional fossil fuels and diversify energy sources, the country has experienced a rise in the solar technologies’ adoption. This trend has led to a higher need for inverters that are pivotal in transforming DC from solar panels into AC for electrical use.

Supportive government policies to encourage renewable energy are contributing to market growth as these measures align with the goals to lower greenhouse gases and enhance energy security. To encourage the shift to renewable energy in the household sector, the government updated the Energy and Mineral Resources Ministerial Regulation which removes the previous cap of 10 to 15 percent on solar PV installations of the total power capacity provided by PLN. The president has also launched the Cirata Floating PLTS with a 192-megawatt peak capacity in Purwakarta Regency. The president underscored that it caters to the significant demand for high-quality green energy products which is likely to boost the market outlook in the next years.

Lower prices for solar panels and associated technologies combined with major advancements in the industry are contributing to their increased affordability and attractiveness for commercial or large-scale applications thereby boosting market growth. For example, in line with its commitment to sustainable operations, Lazada Indonesia plans to deploy solar panels to equip its biggest logistics site, highlighted by a solar release deal with the renewable energy provider Inecosolar. By reducing emissions by 400 tons annually and covering around 13 percent of the warehouse electricity requirements, it is anticipated to boost market revenue in the years ahead.

Nevertheless, the market faces the challenge of keeping up with technological innovations and incorporating renewable energy into current power grids. It is also crucial to ensure grid stability and reliable power quality which requires inverter manufacturers to adapt to the rapid changes in solar technology.

In the product segment, the central inverter will drive the market in the next years owing to prevalence of large-scale utility solar projects across Indonesia which predominantly use central inverters to provide electricity.

In the application segment, the market will be propel by the utility scale. As utility-scale projects proliferate in the country, choosing the most suitable inverter is becoming essential to maximize energy production for solar PV installations. Furthermore, utility-scale solar has been providing stable and clean electricity at predictable costs. Developing such large-scale solar power is a rapid approach to reduce emissions while also fueling the extensive use of PV inverters in the near future.

Top Market Players

Several prominent players within the market are PT Siemens Indonesia, PT Schneider Electric, among others.

Segments covered in the Report:

The Indonesia Solar Inverter Market has been segmented on the basis of inverter type and application. Based on the inverter type, the market is segmented into central inverters, string inverters, micro inverters. Based on the connection type, the market is segmented into On-Grid Connection and Off-Grid Connection. Based on the application, the market is segmented into residential, commercial and industrial, utility-scale.

Report Coverage	Details
Market Revenues (2023)	USD Million
Market Base Year	2023
Market Forecast Period	2024-2031
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Inverter Type, By Connection Type, By Application
Regional Coverage	Indonesia
Companies Profiled	PT Siemens Indonesia, PT Schneider Electric, among others; a total of 2 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Indonesia Solar Inverter Market by Inverter Type

• • Central Inverters
  • String Inverters
  • Micro Inverters

Indonesia Solar Inverter Market by Connection Type

• • On-Grid Connection
  • Off-Grid Connection

Indonesia Solar Inverter Market by Application

• • Residential
  • Commercial and Industrial
  • Utility-scale

Indonesia Solar Inverter Market Leading players (Option 1: Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • PT Siemens Indonesia
  • PT Schneider Electric