Solar Energy Developer SUN Energy Obtains Loan Worth IDR 326 Billion

Solar power project developer PT Surya Utama Nuansa (SUN Energy) obtained funding in the form of a long-term loan worth $21 million (around Rp. 325,7 billion) from DEG, a German financial institution.

This is the second loan from DEG which was signed in October 2023. Previously, in 2021, SUN Energy obtained series A funding of IDR 360 billion, one of which was from Main Energy TBS, which also founded an electric motorbike joint venture Electrum.

According to information on the official website, these funds will be used to finance additional capacity of 50 MW at more than 50 new project locations for commercial and industrial rooftop solar power plants in Indonesia.

Founded in 2016, SUN Energy develops and leases solar photovoltaic (PV) installations to companies and industries, such as shopping centers, with long-term lease agreements. To date, the company has secured project contracts with a total capacity of 280MW, of which 89 projects have been completed, 3 projects are located abroad, and the rest are spread across 25 cities in Indonesia.

DEG further stated that Indonesia has great potential in the renewable energy sector and the impact of development driven by electrification efforts in rural areas and outside Java. This is in line with SUN Energy's efforts to develop solar panels.

Additionally, this investment also contributes to DEG's strategy to support green energy transformation in Asia. Apart from supporting young and innovative business actors in developing countries, this is an important step in Indonesia's efforts to encourage a renewable energy mix by 2030.

"This transaction primarily contributed to goal 7th SDG related to providing affordable and clean energy, and goal 13th regarding climate action," said the DEG statement.

Commercial and industrial rooftop solar PV is still a young and growing segment that has an important role in Indonesia's plans to increase the share of Renewable Energy to 20% by 2030.

Based on records Ministry of Energy and Mineral Resources, the realization of the new renewable energy mix only reached 12,5% ​​in the first half of 2023, missing the target set last year at 17,9%. This target is said to have not been achieved because most of the commercial operation date (OCD) for EBT generators is estimated to be executed only a year later.

Apart from SUN Energy, several startups developing solar panels in Indonesia include Xurya, Suryanesia, and SolarKita.