01 November 2025

The Benefits of Solar Energy for the Industrial Sector

Rising energy demand and growing global pressure to cut carbon emissions have prompted many companies to transition toward solar energy as a green energy solution. This shift aligns with global policy directions promoting clean energy transition and sustainable business practices.

As one of the pioneers in providing solar energy solutions for industrial applications, SUN Energy supports this movement through the development of efficient and sustainable solar energy systems across various manufacturing facilities in Indonesia.

1. Long-Term Energy Cost Efficiency

The industrial sector is Indonesia’s largest electricity consumer, accounting for about 30% of total national consumption. Amid rising production demands and operational efficiency pressures, many companies are seeking more cost-effective and environmentally friendly energy alternatives, one of which is solar energy.

Utilizing solar energy systems has proven to reduce industrial electricity costs by 30-40%, depending on system capacity and energy usage patterns. This is because solar electricity replaces part of the grid supply during daytime peak hours when both tariffs and consumption are typically highest.

In addition to cost savings, solar energy systems have a lifespan of up to 25 years with relatively low maintenance costs. With this combination of benefits, solar energy becomes a long-term strategic solution for industries to enhance competitiveness while supporting Indonesia’s national decarbonization goals.

2. Driving Industrial Decarbonization and Global Competitiveness

Climate change is no longer just an environmental issue. It has become a major factor influencing global investment and trade. Industries that demonstrate low-carbon performance hold stronger positions in export markets and are more attractive to ESG-oriented investors.

Global Pressure Accelerating Energy Transformation

According to a survey by IFM Investors, 69% of global investors believe the transition to clean energy is inevitable, and 70% now consider sustainability a key factor in investment strategies. This shows that adopting solar energy systems is not only an energy efficiency measure but also a business strategy to strengthen corporate reputation and investor confidence.

Foreign Policy and Export Competitiveness

Beginning in 2026, the European Union will implement the Carbon Border Adjustment Mechanism (CBAM), imposing additional costs on products with high carbon footprints. Similar policies are under discussion in Japan and the United States. For Indonesia’s export-oriented industries, adopting solar energy offers a practical solution to reduce production emissions and comply with global green supply chain standards.

Solar Energy and Access to Green Financing

Green investment trends are also accelerating. The Investor Agenda Report (2024) notes that more than 230 investors have published climate transition action plans. Industries that have integrated solar energy into their operations are more likely to obtain green financing, supported by measurable emission reduction data.

Overall, solar energy not only helps industries reduce emissions but also strengthens their position in global markets that increasingly value low-carbon products.

3. Simplifying Regulatory Compliance for Emission Reporting

The commitment to a green industrial transformation is now being reinforced by concrete policies. Through Circular Letter No. 2/2025 issued by the Ministry of Industry (MoI), all industrial companies in Indonesia are required to report their greenhouse gas (GHG) emission data through the National Industrial Information System (SIINas) portal. This initiative supports national emission data consolidation and serves as part of the industrial decarbonization strategy in response to global demands for carbon transparency.

In this context, implementing solar energy systems becomes a practical step for companies to meet emission reporting obligations. By using solar energy during daytime operational hours, industries can significantly reduce carbon emissions from conventional electricity use. Moreover, measurable data from solar energy utilization helps companies document emission reductions accurately—making it easier to report sustainability performance to the government, investors, and global partners.

For the industrial sector, solar energy is more than just an alternative power source—it is a sustainable business strategy to cut costs, meet emission reporting requirements, and maintain global competitiveness. With integrated solutions from SUN Energy, industries in Indonesia can accelerate their shift toward low-carbon operations while strengthening their role in the global green supply chain.

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References:

  1. https://web.pln.co.id/media/siaran-pers/2024/01/penjualan-meningkat-ini-upaya-pln-listriki-sektor-bisnis-dan-industri-sepanjang-tahun-2023 
  2. https://www.ifminvestors.com/en-gb/news--insights/media-centre/majority-of-global-investors-believe-energy-transition-is-unstoppable/ 
  3. https://blogs.worldbank.org/en/trade/how-developing-countries-can-measure-exposure-eus-carbon-border-adjustment-mechanism 
  4. https://theinvestoragenda.org/blog/review-of-230-investors-finds-icaps-are-becoming-common-practice/ 
  5. https://www.scribd.com/document/833748431/SE-No-2-tahun-2025-2