Grid parity analysis: The present state of PV rooftop in Indonesia

Even though PV rooftop technology is popular, currently the levelized cost of electricity (LCOE) is more expensive than the grid electricity price, especially in developing countries. However, the solar panel price is decreasing, which make the LCOE of PV rooftop in the near future would decrease to the same level as grid electricity price. This condition is defined as grid parity. In this research, the grid parity condition in Jakarta and Surabaya (Indonesia) is calculated and compared to the willingness to pay (WTP) data. Then, the effect of the PV rooftop installation on the generation cost is investigated under various sizes of PV rooftop aggregation. The grid parity analysis is evaluated by calculating LCOE at different capacities then comparing it to electricity tariff. After that, grid generation cost is investigated using unit commitment procedure. The result shows that the larger the installed capacity, the faster the grid parity condition is achieved. In addition, the PV rooftop system in Surabaya has a lower LCOE value than Jakarta due to the greater potential for solar energy. Furthermore, the PV rooftop installation effect on the power system would reduce the energy production from the conventional generating unit. On contrary, the average generation cost for Java Bali electric system would increase to 6.4% because of the inefficiency of the existing generating unit operation.