Techno-Economic Household-Scale Solar Power Plants in Support of The Policy of Presidential Regulation Number 112 of 2022 Concerning the Acceleration of Renewable Energy Development

This study evaluates the economic feasibility of household-scale solar power generation businesses using a content analysis approach, focusing on financial performance over a 20-year projection period. Key indicators analyzed include gross profit margin, internal rate of return, payback period, and net present value. The study also provides an overview of potential material utilization for production. Results show that, although initial production costs are significant, household-scale solar power plants offer high profitability with a rapid return on investment. The break-even point is reached relatively quickly, indicating that this business model is economically viable and sustainable in the medium term. The feasibility is further supported by the growing potential of renewable energy alternatives, which present economic opportunities while contributing to environmental preservation. This research highlights the strategic role of household-scale solar power plants in accelerating renewable energy development, in line with Presidential Regulation of the Republic of Indonesia Number 112 of 2022, and in supporting Sustainable Development Goal (SDG) 7 by promoting access to clean and affordable energy for the community.

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Publication Details

Journal
Indonesian Journal of Science and Technology
Published
2025-08-27
DOI
https://doi.org/10.17509/ijost.v11i2.89708
Primary Topic
Geochemistry and Geologic Mapping
Type
article
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article

Techno-Economic Household-Scale Solar Power Plants in Support of The Policy of Presidential Regulation Number 112 of 2022 Concerning the Acceleration of Renewable Energy Development

Indonesian Journal of Science and Technology
Geochemistry and Geologic Mapping
article

Techno-Economic Household-Scale Solar Power Plants in Support of The Policy of Presidential Regulation Number 112 of 2022 Concerning the Acceleration of Renewable Energy Development

article en

Abstract

This study evaluates the economic feasibility of household-scale solar power generation businesses using a content analysis approach, focusing on financial performance over a 20-year projection period. Key indicators analyzed include gross profit margin, internal rate of return, payback period, and net present value. The study also provides an overview of potential material utilization for production. Results show that, although initial production costs are significant, household-scale solar power plants offer high profitability with a rapid return on investment. The break-even point is reached relatively quickly, indicating that this business model is economically viable and sustainable in the medium term. The feasibility is further supported by the growing potential of renewable energy alternatives, which present economic opportunities while contributing to environmental preservation. This research highlights the strategic role of household-scale solar power plants in accelerating renewable energy development, in line with Presidential Regulation of the Republic of Indonesia Number 112 of 2022, and in supporting Sustainable Development Goal (SDG) 7 by promoting access to clean and affordable energy for the community.

Indonesian Journal of Science and TechnologyVol. 11(2)
Universitas Djuanda (ID)
Openalex Percentile: Top 37%
Geochemistry and Geologic Mapping
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Techno-Economic Household-Scale Solar Power Plants in Support of The Policy of Presidential Regulation Number 112 of 2022 Concerning the Acceleration of Renewable Energy Development · Indonesian Journal of Science and Technology (2025) | TGRS Research Map | TGRS