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

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.