Policy Optimization of Residential Rooftop Solar PV System Adoption in Indonesia: Considering Stakeholders

Abstract

Indonesia is an equatorial country with considerable renewable energy potential. However, the utilization of solar energy in Indonesia remains low due to policy factors related to solar PV capacity and the applicable Feed-in Tariff (FiT). This study aims to optimize the FiT, generation capacity, and average billing rate to maximize stakeholder profits, namely, those of consumers (electricity users who use conventional generation without self-generation), prosumers (consumers as well as rooftop solar photovoltaic (PV) users), and Indonesian utility, namely PT PLN. Stakeholder economic modeling is conducted using a case study of 1,300 VA customers. The model for prosumer savings and utility profit is optimized using a multi-objective genetic algorithm optimization problem. The constraint function is formulated using the FiT, generation capacity, energy demand, average bill, and cost of generation supply as the decision variables. Finally, a workflow is designed for obtaining the optimal FiT and solar PV capacity in the system to provide practical policy recommendations for stakeholders. The Solar PV design used in optimization modeling has a capacity of 1,100 Wp using 2 scenarios that are distinguished from the use of PV module types, JAM5®-72-220 PV modules and Longi LR5-72HPH-550M pv modules. Thus, from the optimization results using the genetic algorithm method, the most optimal solution is the second scenario with the recommended FiT scheme of Rp522.41/kWh because the payback period, prosumer savings, and utility profit generated are more optimal.