TotalEnergies ENEOS completed Phase II expansion of rooftop solar at the Ceres factory in Bandung, Indonesia.

Introduction

Indonesia, as the largest economy in Southeast Asia, is accelerating the deployment of renewable energy to achieve its 2060 carbon neutrality target. Commercial and industrial rooftop solar photovoltaic (PV) systems, due to their short construction period, proximity to load centers, and no need for additional land, have become a crucial part of the country's clean energy transition. In June 2026, TotalEnergies ENEOS announced the completion of the second phase of a rooftop solar expansion project at the PT. Perusahaan Industri Ceres chocolate and candy manufacturing factory in Bandung, West Java. This project not only improves the factory's clean electricity self-sufficiency rate but also provides a replicable case for energy decarbonization in Indonesia's manufacturing sector.

Industry Background

Indonesia has abundant solar resources, with an average annual solar irradiation of about 4.8 kWh/m²/day. However, as of the end of 2025, the country's total installed solar PV capacity was only approximately 1.2 GW, far below its potential. The government has set a target of 23% renewable energy by 2030 and introduced net metering policies to encourage distributed PV. Nevertheless, weak grid infrastructure, high financing costs, and policy implementation uncertainties remain major obstacles.

The commercial and industrial sector is the main growth area for electricity consumption in Indonesia. According to the International Energy Agency (IEA), manufacturing accounts for about 35% of Indonesia's total electricity demand. Rooftop PV can help factories reduce operating costs, hedge against electricity price increases, and meet the green electricity requirements of international supply chains. TotalEnergies ENEOS, a joint venture between TotalEnergies and Japan's ENEOS, focuses on distributed solar project development in the Asia-Pacific region. Its local deployment reflects foreign confidence in Indonesia's commercial and industrial solar PV market.

Current Development Trends

Project Scale and Structure

The Ceres factory rooftop solar project was built in two phases:

• Phase 1: Completed in September 2024, with a capacity of 2.2 MWp and installation of approximately 3,800 solar panels.
• Phase 2: Completed in June 2026, adding approximately 2,400 solar panels with a capacity of 1.4 MWp.

The total installed capacity reaches 3.6 MWp, with an annual power generation of about 4,630 MWh, equivalent to reducing approximately 3,300 tons of carbon dioxide emissions per year (calculated based on the average emission factor of Indonesia's grid). The electricity generated is directly used by the factory, accounting for about 12% of the factory's total electricity consumption.

Enterprise Cooperation Model

The project was developed under a long-term power purchase agreement (PPA) model: TotalEnergies ENEOS is responsible for investment, construction, and operation and maintenance, while the Ceres factory pays a monthly electricity fee. This model lowers the initial investment threshold for users and ensures stable revenue expectations for the developer, making it the mainstream commercial model for commercial and industrial distributed PV in Indonesia.

Policy and Financing EnvironmentSince 2023, the Indonesian government has revised the Minister of Energy Regulation, allowing distributed photovoltaic systems to sell surplus electricity to the grid through a net metering mechanism, but with a cap on the amount. In addition, the central bank provides preferential interest rates for green financing of renewable energy projects, but commercial banks remain cautious in approving small and medium-sized projects. TotalEnergies ENEOS, backed by its parent company's credit, is able to obtain project financing at a lower cost.

Impact on the Energy System

Energy Supply and Security

Rooftop PV directly provides clean electricity to the factory, reducing dependence on the national grid. Against the backdrop of continuous load growth and insufficient peak-shaving capacity in Indonesia's Java-Bali grid, distributed PV can alleviate local peak electricity demand and enhance the resilience of energy supply.

Grid Stability

Large-scale grid integration of distributed PV may cause issues such as voltage fluctuations and harmonic pollution. However, this project reduces the impact on the grid through intelligent inverter control and design matching with factory load. As more commercial and industrial PV projects are connected to the grid, PT PLN (Persero) needs to strengthen distribution network upgrades and introduce smart metering systems.

Electricity Cost and Competitiveness

For the Ceres factory, the levelized cost of electricity (LCOE) of PV is already lower than Indonesia's commercial and industrial electricity tariff, with an estimated payback period of 6-8 years. This will enhance the price competitiveness of its products in the international market, especially as the EU Carbon Border Adjustment Mechanism (CBAM) is gradually implemented, using green electricity can reduce export carbon costs.

Carbon Emission Reduction Targets

Indonesia has committed to achieving net-zero emissions by 2060, with the energy sector being key to emission reductions. Commercial and industrial PV reduces about 2,300 tons of CO2 per megawatt annually; this project reduces 3,300 tons per year, equivalent to planting about 180,000 trees. However, Indonesia's current electricity emission factor is still high (approximately 0.81 tCO2/MWh), necessitating accelerated coal phase-out and grid integration of renewable energy.

Challenges Faced

Insufficient Energy Storage

Rooftop PV only generates electricity during the day and cannot meet the factory's night-time production needs. Currently, the project is not equipped with energy storage. In the future, if the factory wants to further increase the proportion of renewable energy, it will need to be equipped with battery energy storage systems. Currently, battery storage costs in Indonesia are still high, and there is a lack of independent energy storage tariff policies.

Transmission Network Limitations

Some industrial areas in Indonesia have limited distribution capacity, making it difficult to accommodate more distributed PV. The Ceres factory is located in the suburbs of Bandung, where the local distribution network is aging, and minor upgrades are needed before grid connection. PLN's processing speed for new grid connection applications is slow, which may delay the project schedule.

Financing Pressure

Although the PPA model reduces the initial investment for users, developers still face working capital pressure. Commercial banks are unwilling to provide loans for PPAs longer than 15 years, and projects depend on developers' balance sheets or international green funds. Local banks in Indonesia have limited capacity to assess the risk of PV projects, and financing costs are 2-3 percentage points higher than in developed countries.

Policy UncertaintyIndonesia's net metering policy has been adjusted multiple times, with the buyback price for excess electricity dropping from an initial 100% of the electricity tariff to 65%, though there have been recent signs of recovery. Frequent policy changes increase investment risks, and developers need to establish risk-sharing mechanisms in PPAs. The direction of energy policy after the 2026 election remains unclear.

Technology Maturity

Rooftop solar PV technology is already quite mature, but Indonesia's hot and humid climate poses challenges to the long-term reliability of modules. Additionally, rooftop load-bearing assessments, typhoon-resistant design, and maintenance access require professional engineering involvement. As an experienced developer, TotalEnergies ENEOS can ensure quality standards, but small and medium-sized projects often lack specialized technical support.

Future Outlook (2026-2040)

Energy Structure Changes

Indonesia's solar PV installed capacity is expected to grow from approximately 2 GW in 2025 to 8-10 GW by 2030, with commercial and industrial distributed systems accounting for over 40%. As battery costs decline, integrated solar-plus-storage projects will gradually become mainstream, enabling factories to achieve over 80% renewable energy self-sufficiency. Large-scale rooftop installations need to be combined with building-integrated photovoltaics (BIPV) technology.

Investment Trends

Global energy transition capital continues to flow into Southeast Asia. As a G20 member, Indonesia's attractiveness for renewable energy investment is rising. Between 2026 and 2030, annual investment in Indonesia's commercial and industrial solar PV is expected to reach USD 1.5-2 billion, with international development institutions (such as the World Bank and Asian Development Bank) and pension funds participating. The PPA model will extend to virtual power purchase agreements (VPPAs) and green certificate trading.

Technology Development Directions

• High-efficiency modules: N-type TOPCon and heterojunction (HJT) modules have conversion efficiencies exceeding 24%, offering significant power generation gains under Indonesia's high-temperature conditions.
• Intelligent operation and maintenance: Drone thermography inspections and AI predictive maintenance technologies can improve plant generation efficiency by over 5%.
• Microgrids: Multiple factory rooftop solar systems interconnected via DC microgrids, combined with energy storage and controllable loads, form virtual power plants to participate in ancillary service markets.

Global Energy Competition Landscape

Southeast Asian manufacturing is facing a carbon footprint competition. Markets in the EU, the US, Japan, and others are imposing increasingly stringent requirements on the embodied carbon of imported products. If Indonesian manufacturers fail to rapidly transition to green electricity, they may lose export market share. Foreign developers like TotalEnergies ENEOS bring not only capital but also international carbon accounting and green power traceability expertise, helping to enhance Indonesia's industrial position in the global green supply chain.

ConclusionThe TotalEnergies ENEOS rooftop solar phase II expansion at the Ceres factory is a typical example of commercial and industrial distributed photovoltaic in Indonesia. It demonstrates that under existing policies and technical conditions, a win-win situation for multiple parties can be achieved through the PPA model. However, to promote it on a large scale, systemic challenges such as energy storage, grid, financing, and policy stability still need to be addressed. The successful implementation of this project provides a reference for manufacturing decarbonization in other Southeast Asian countries and pushes Indonesia a step closer to a clean energy future.