Building Integrated Photovoltaic in Indonesia Trends and Forecast
The future of the building integrated photovoltaic market in Indonesia looks promising with opportunities in the industrial, commercial, and residential markets. The global building integrated photovoltaic market is expected to grow with a CAGR of 15.8% from 2025 to 2031. The building integrated photovoltaic market in Indonesia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the swift growth of solar photovoltaic installation capacities globally, driven by rising demand for renewable energy sources and growing recognition of energy security, self-sufficiency, and supportive government regulations.
• Lucintel forecasts that, within the application category, the roof segment is expected to witness the highest growth over the forecast period due to enhanced strength and superior aesthetic charm in integrated roofs and skylights.
• Within the end use industry category, industrial will remain the largest segment due to increasing utilization to decrease dependence on non-renewable energy sources.
Emerging Trends in the Building Integrated Photovoltaic Market in Indonesia
Indonesia is making its mark as one of the new leaders in renewable energy, with the building integrated photovoltaic (BIPV) industry showing good prospects. The high solar potential in the country, increasing energy consumption, and the government’s sustainability initiatives are all components that can support BIPV adoption. As more people shift to cities and become more environmentally conscious, BIPV technology is being implemented in new residential, commercial, and governmental structures. These changes demonstrate an effort to move toward more energy-efficient buildings and reduce reliance on conventional energy sources, transitioning Indonesia into a new frontier in renewable energy.
• Government Incentives and Renewable Energy Policies: The Indonesian government is making efforts to adopt renewable energy, such as BIPV, through various policies and incentives. Green building and renewable energy policies are helping both residential and commercial units adopt these technologies with more ease. The government’s focus on reducing emissions while expanding renewable energy sources is an important factor that encourages BIPV integration into urban settings and further improves Indonesia’s energy outlook.
• Rising Need for Sustainable Urban Engineering: The increasing urban population in Indonesia calls for a sustainable approach to urban engineering. building integrated photovoltaics (BIPV) is being adopted as a healthy alternative for powering buildings, lowering energy usage, and aiding in green building efforts. Cities such as Jakarta and Bali are improving their adoption of solar solutions for both environmental and economic purposes. The installation of BIPV on building walls and rooftops allows developers to enhance the sustainability of urban infrastructure and helps Indonesia fulfill its carbon emission reduction goals.
• Association with Smart Cities Initiatives: Indonesia’s movement toward smart cities provides an excellent opportunity to use BIPV technology. To achieve these goals, BIPV is viewed as a vital element for incorporating renewable energy sources into other regions of the country. BIPV structures are ideal for smart city infrastructure as they provide energy autonomy to buildings without increasing the burden on the grid. The growth of smart cities in Indonesia may lead to greater use of BIPV technology and help the cities meet their energy efficiency and sustainability targets.
• Energy Independence: As the demand for energy independence grows, the shortage of power and increasing energy costs in Indonesia are focusing attention on achieving independence through renewable technologies. building integrated photovoltaic (BIPV) systems enable building owners to generate their electricity, reducing dependence on the grid. This allows them to take control of energy price fluctuations. With the increasing focus on energy self-sufficiency, BIPV serves as a major option to achieve greater energy independence while significantly reducing operational costs. This self-sufficiency is attractive for both commercial and residential property owners in regions with unreliable power supplies.
• Recent Improvements In The Efficiency Of BIPV Systems: The recent improvements in the efficiency of BIPV systems and the ease in manufacturing processes have led to a significant drop in costs. Other innovations in solar glass and flexible panels allow for easier integration into building structures. As the price for solar panels decreases and efficiency increases, BIPV systems are becoming a cheaper and more effective option for developers and homeowners in Indonesia. The improving economics of BIPV make it not only a cost-effective option for large-scale projects but also allow for quicker adoption across different building types and regions.
In Indonesia, the BIPV market holds immense potential, as the opportunity continuously evolves due to increasing urbanization, energy demands, and sustainability strategies. Furthermore, integrating BIPV systems into residential and commercial structures is made simpler by new cleantech policies set up by the government. These policies facilitate the adoption of renewable energy resources, while simultaneously implementing measures to reduce carbon emissions and energy expenditure. Therefore, in Indonesia, BIPV technologies are now being considered a viable option. Here are some insights on the Indonesian BIPV market.
Recent Developments in the Building Integrated Photovoltaic Market in Indonesia
Indonesia’s shifting policies towards renewable resources and green buildings make BIPV more appealing. In this context, the government’s aim to raise the share of renewable resources in the national energy mix is pushing the construction sector to integrate solar power into building designs. Providing tax exemptions, subsidies, and simplified licensing for renewable energy structures motivates businesses and homeowners to adopt BIPV. This governmental push is helping to scale up efforts for BIPV system integration, which helps achieve the set targets for attaining green buildings.
• Rise of Green Building Certification Programs: Green building rating systems, such as the Indonesian Green Building Council (IGBC), are becoming common among many developers and building owners. These certifications promote the use of energy-efficient design and construction processes as well as sustainably sourced building materials, including BIPV systems. Customers who need to meet certain energy standards are more likely to install solar solutions in their building designs, and developers are increasingly incorporating such features into their buildings. These factors will surely increase the use of BIPV systems in homes and offices, as they are one of the many solutions to energy efficiency and ecological issues.
• Change in Urban Areas and Increased Usage in Commercial Spaces: As a consequence of urbanization, there is an increasing demand for sustainable infrastructure systems in Indonesia. BIPV systems are being integrated into commercial buildings in urban areas. As property managers comply with regulations and strive to be environmentally friendly, BIPV helps reduce buildings’ operational costs. Energy is used more efficiently. As a result, more and more new businesses are adopting BIPV to meet legal obligations. The commercial sector is thus a major driving force behind the expansion of BIPV technology in Indonesia.
• Collaboration with Foreign Owners of Solar Technology Businesses: Indonesia is intensifying foreign partnerships to facilitate the development of BIPV solutions. BIPV solutions require expertise and advanced technologies that bring significant financial resources, so these partnerships are essential for any developing marketplace. Foreign firms want to develop BIPV technology by setting up offices in Indonesia to handle manufacturing and distribution. Their further investment proves that these technologies will be offered at reasonable prices. Funding local innovations provides a more efficient and cheaper option for the market. Furthermore, collaboration between international companies and local stakeholders is crucial for the growth of the BIPV market in Indonesia and for the effective integration of the technology in both cities and rural areas.
• Greater Focus on Sustainable Energy Use in Government Buildings: The incorporation of energy efficiency targets within Indonesia’s public buildings has accelerated the use of BIPV systems. As part of public infrastructure carbon emission reductions, solar energy projects are being funded and executed. BIPV system integration reduces operational costs and serves as a motivational example for the private economy. Once again, it is noted that the adoption of BIPV in the public sector is changing attitudes toward solar-integrated buildings, which is influencing the private sector to adopt similar practices.
Indonesia’s commitment to renewable energy integration and urban sustainability is manifesting itself through rapid changes in its domestic BIPV market. Initiatives from the ruling government, the incorporation of foreign solar energy companies, and the demand for energy sufficiency in construction are driving the popularity of BIPV technology. The continuous progress in solar system technologies and the rise in environmental concerns will ensure a smooth transition in the country’s energy economy to clean energy, where BIPV is bound to play a significant role.
Strategic Growth Opportunities for Building Integrated Photovoltaic Market in Indonesia
Renewable energy solutions and urbanization offer strategic growth opportunities, along with government incentives that boost the building integrated photovoltaic (BIPV) market in Indonesia. These factors also focus on the development of the economy. The evolution of Indonesia’s energy landscape changes along with environmental goals and efforts to address energy efficiency, enabling BIPV systems to function optimally. The increasing shift toward sustainable building practices, infrastructure, and commercial projects aids in improving technology in both urban and rural areas. The following focuses on essential growth opportunities for BIPV in Indonesia.
• Residential Buildings: With the growing shift toward urbanization in Indonesia, energy-efficient residential buildings are in high demand. By harnessing solar energy directly from the sun, homeowners can greatly reduce their electricity costs, contributing to sustainability. IoT has increased awareness of environmental issues, and when combined with government incentives, this aids in a significant increase in the adoption of residential BIPV. Suburban regions stand to benefit the most by utilizing rooftops, which are otherwise greatly underused, to install BIPV systems. By doing so, households are provided with a renewable energy source, reducing their dependence on the national grid.
• Commercial Real Estate: The commercial real estate sector in Indonesia is adopting BIPV technologies to save on expenses and achieve sustainability. BIPV lowers energy costs for businesses while improving the energy performance of buildings. As the focus on renewable systems like solar panels increases, certifications such as LEED make BIPV systems integrated into commercial buildings help developers meet energy-efficiency goals, which are a requirement in many countries. The energy BIPV generates improves energy security and reduces the consumption of expensive grid electricity, thus enabling the growth of the effective energy solutions market in commercial buildings.
• Public Infrastructure Projects: Government BIPV systems are being incorporated into buildings and public infrastructure developments in Indonesia to meet national energy efficiency goals. These projects reduce energy costs for taxpayers while representing sustainable modernization. The incorporation of BIPV systems into public infrastructure is driving change, as the Indonesian government pushes for cleaner energy solutions. Public buildings like schools, hospitals, and government offices with BIPV installations can play a significant role in meeting Indonesia’s renewable energy targets.
• Smart Cities and Urban Developments: The growing trend of smart city projects in Indonesia presents a unique opportunity for BIPV systems to be integrated into urban planning. These cities, built with sustainability in mind, can easily incorporate BIPV. By placing solar technology on building surfaces such as walls and rooftops, energy consumption is reduced while self-sufficient energy ecosystems are created. The adoption of smart cities in Indonesia is likely to accelerate the use of BIPV for sophisticated urban development strategies aimed at sustainability.
• Industrial Buildings: A noticeable shift toward renewable energy is occurring in Indonesia’s industrial sector, particularly in manufacturing and logistics. BIPV systems enable industrial buildings to meet a large percentage of their high energy needs. As the Indonesian government implements new policies encouraging green technology adoption, industrial buildings have become primary users of BIPV. These technologies help industries minimize operational costs and comply with environmental laws, aiding the shift toward a sustainable industrial economy.
The Indonesian BIPV market has strategic growth opportunities within residential, commercial, and other public facilities, as well as smart cities. The country can further incorporate renewable energy solutions in the buildings of these sectors for sustainability and energy efficiency. The combination of increasingly widespread BIPV applications, government support, and growing environmental awareness will profoundly change the energy dynamics of Indonesia and accelerate the country toward more sustainable and energy-efficient BIPV applications in facades and other building components.
Building Integrated Photovoltaic Market in Indonesia Driver and Challenges
The building integrated photovoltaic (BIPV) market in Indonesia is rising due to technological development, economic marketing, and supportive policies passed by the government. The integration of solar cells into the facades of buildings in Indonesia is driven by the increasing demand for sustainable energy, the energy-efficient building strategy, and the supportive policies from the government. Nevertheless, for market expansion to continue, stringent barriers like high upfront costs, regulations, and technical issues need to be overcome. Here are the most important factors for and against the growth of the BIPV market in Indonesia.
The factors responsible for driving the building integrated photovoltaic market in Indonesia include:
• Incentives and Policies of the Government: Any government initiative aimed at decreasing carbon emissions or increasing the use of renewable energy sources benefits the BIPV market in Indonesia. The government’s target for renewable energy deployment is aggressive, and solar technology policies in the building sector are favorable. The Indonesian government is promoting the use of BIPV systems in private homes, offices, and government buildings through subsidies, tax breaks, and encouraging regulations. These initiatives help lower the upfront costs of installing BIPV systems, increasing accessibility.
• Infrastructure Development and Urbanization: Indonesia has a high urban growth rate, which is creating a demand for energy-efficient buildings and infrastructure. With accelerated urbanization, many new buildings are being constructed, offering a massive opportunity for incorporating BIPV technologies into new developments. The technology enables developers to meet the heightened demand for efficiency solutions in the context of sustainable city environments. The expansion of Indonesian cities like Jakarta and Surabaya demonstrates why applying BIPV technologies to contemporary structures is the easiest way for Indonesia to achieve its ecological and energy targets.
• Increasing Issues in Energy Costs Along with Power Outage Control Regulations: Increasing energy costs and erratic power outages in several regions of Indonesia have created a significant need for alternative energy sources. BIPV systems offer a great alternative to grid electricity, especially in areas with unstable electricity supply. Building owners can generate their own electricity, reducing dependence on the already strained power grid. This leads to a reduction in the adverse impacts of electricity rationing. Areas struggling with poor electricity infrastructure are increasingly adopting BIPV technology due to the growing demand for energy independence. Thus, the need for energy independence is further fueling the adoption of BIPV.
• Significant Cost Reductions Along with Advancements in Technology: The growth of the BIPV market in Indonesia is supported by advancements in solar panel technologies and improvements in energy efficiency. Increased solar module efficiency, along with reduced production costs, results in lower initial investment barriers for adopting BIPV. These innovations are transforming BIPV systems into a more feasible and appealing option for investors and developers. The trend toward lower-cost, higher-efficiency solar panels will undoubtedly facilitate the broader acceptance of BIPV systems in residential, commercial, and industrial buildings.
• Environmental Responsibility and Corporate Social Responsibility (CSR): The increasing concern among the public and businesses in Indonesia is creating a demand for sustainable green building practices. Companies are paying more attention to corporate social responsibility (CSR), and BIPV is one solution to meet their business needs. To lower their carbon emissions, companies are adopting BIPV technology, which has become a primary, economically feasible alternative for meeting international environmental goals. This movement is likely to grow as more Indonesian companies realize the long-term benefits of investing in energy-efficient construction.
Challenges in the building integrated photovoltaic market in Indonesia are:
• Initial High Investment Costs: In Indonesia, the most pressing challenge to the adoption of BIPV systems is the high initial investment cost, despite the long-term savings in efficiency. A major part of the population, particularly property owners of residential buildings, express skepticism due to the minimal government assistance and the high cost of installation. Limited access to BIPV systems due to increased hardware costs is a particularly pronounced issue for lower- and middle-income families. This situation can only improve with more government legislation and financial schemes to subsidize BIPV systems for economically disadvantaged classes.
• Regulatory Hurdles and Bureaucratic Processes: Permitting procedures and policy enforcement for renewable energy are rarely implemented promptly, posing one of the most fundamental challenges to the wider adoption of BIPV in Indonesia. Potential developers and building owners are at risk because, even though policies are in place, implementation is slow. There are also different laws in various regions, which may make it harder for firms wishing to use BIPV in their projects. Solving these conflicts is crucial to ensure that BIPV technology is adopted smoothly across Indonesia.
• Knowledge Gap and Lack of Qualified Professionals: The use of BIPV technology remains relatively low, and this gap continues to pose obstacles to its full utilization on construction sites in Indonesia. The people who construct or develop properties often do not understand the cost and environmental benefits of integrating solar into buildings. Additionally, the market is limited by a lack of qualified professionals who can skillfully design and install BIPV systems. This challenge underscores the need for extensive training and outreach programs to familiarize more people with the opportunities available through the adoption of BIPV technology.
The market for building integrated photovoltaic (BIPV) systems in Indonesia is expanding due to government initiatives, urban growth, technological progress, and growing concern about environmental issues. Nonetheless, high upfront costs, regulatory hurdles, and insufficient information continue to pose major challenges to adoption. Overcoming these hurdles, along with sustained policy support, will be critical to integrating BIPV within Indonesia’s sustainable building agenda, furthering the country’s renewable energy and environmental goals.
List of Building Integrated Photovoltaic Market in Indonesia Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, building integrated photovoltaic companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the building integrated photovoltaic companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Building Integrated Photovoltaic Market in Indonesia by Segment
The study includes a forecast for the building integrated photovoltaic market in Indonesia by technology, application, and end use industry.
Building Integrated Photovoltaic Market in Indonesia by Technology [Analysis by Value from 2019 to 2031]:
• Crystalline Silicon
• Thin Film
• Others
Building Integrated Photovoltaic Market in Indonesia by Application [Analysis by Value from 2019 to 2031]:
• Roof
• Glass
• Wall
• Facade
• Others
Building Integrated Photovoltaic Market in Indonesia by End Use Industry [Analysis by Value from 2019 to 2031]:
• Industrial
• Commercial
• Residential
Features of the Building Integrated Photovoltaic Market in Indonesia
Market Size Estimates: Building integrated photovoltaic in Indonesia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Building integrated photovoltaic in Indonesia market size by technology, application, and end use industry in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different technology, application, and end use industry for the building integrated photovoltaic in Indonesia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the building integrated photovoltaic in Indonesia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the building integrated photovoltaic market in Indonesia?
Answer: The major drivers for this market are swift growth of solar photovoltaic installation capacities globally, driven by rising demand for renewable energy sources and growing recognition of energy security, self-sufficiency, and supportive government regulations.
Q2. What are the major segments for building integrated photovoltaic market in Indonesia?
Answer: The future of the building integrated photovoltaic market in Indonesia looks promising with opportunities in the industrial, commercial, and residential markets.
Q3. Which building integrated photovoltaic market segment in Indonesia will be the largest in future?
Answer: Lucintel forecasts that roof installation is expected to witness the highest growth over the forecast period due to enhanced strength and superior aesthetic charm in integrated roofs and skylights.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the building integrated photovoltaic market in Indonesia by technology (crystalline silicon, thin film, and others), application (roof, glass, wall, facade, and others), and end use industry (industrial, commercial, and residential)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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