Bali, the world’s iconic tourist destination, is increasingly placing sustainability and green tourism as a core value of the hospitality industry. Hotels, resorts, and villas now compete not only on service and facilities, but also on their reputation for environmental friendliness. One of the most effective strategies is utilizing solar energy through rooftop solar power plantsSolar panels not only reduce dependence on sometimes fluctuating PLN electricity, but also lower long-term operational costs and enhance a business’s eco-friendly image.
The continued growth of Bali’s tourism sector—both domestic and international—is a golden opportunity for EPCs and developers to develop rooftop solar power projects. However, behind this significant opportunity lies various risks that must be anticipated These include panel damage due to tropical weather, the risks of installing on complex rooftops, and the possibility of third-party lawsuits disrupting hotel or resort operations. Without proper mitigation, potential profits can turn into significant financial burdens.
In this article, we will discussThe potential of rooftop solar power plants in Bali, the challenges faced by EPCs and developers, the risks that must be taken into account, and the types of insurance that must be owned to ensure the project runs safely and profitably. With this approach, hotels and resorts not only save energy, but also strengthen eco-friendly branding and financial security for their projects.
📞 Consult your rooftop solar project insurance coverage with L&G Insurance Brokers now.With extensive experience and understanding of the risks in Bali’s renewable energy sector, we help design insurance solutions that accurate, complete, and efficient. Contact us at 08118507773 for a free risk assessment and protection strategy tailored to your project needs.Protectyour investment, reputation and business sustainability with L&G Insurance Brokers.
The Potential of Solar Power Plants in Bali’s Tourism Sector
As a premium tourist destination, Bali has high energy demands, particularly in the hotel and luxury villa sectors. Large-scale hotels and resorts often consume significant amounts of energy for air conditioning, swimming pools, lighting, and other guest facilities. Reliance on PLN electricity is not only risky because of fluctuations in electricity rates, but also vulnerable to supply disruption, especially during peak tourist season.
Rooftop solar power plants (Solar Rooftop)is a strategic solution. By leveraging Bali’s abundant year-round tropical sunshine, EPCs and developers can generate clean energy for hotel operations. Not only does solar energy lower electricity bills, it also enhances the hotel’s eco-friendly image, a key selling point for modern travelers.
In addition, the trendgreen tourism is increasingly attracting the attention of investors and hotel guests. Many international hotels are now setting sustainability standards, including eco-certifications that emphasize the use of renewable energy. Installing rooftop solar power plants is a concrete step that not only reduces costs but also strengthening the reputation of hotels and resortsas an eco-friendly destination.
Several examples of solar power plant (PLTS) implementations in Bali have shown positive results. For example, five-star hotels that installed rooftop solar systems were able to reduce their electricity consumption by 30–40% per month. EPCs and developers targeting similar projects have a significant opportunity to attract investors, secure long-term projects, and meet global sustainability demands.
However, this potential does not come without risks. Solar panels, inverters, and energy storage systems are high value assets which need to be protected from damage, theft, or technical failure. Therefore, project insurance planning is a crucial part of the solar power plant development strategy in Bali.
Risks & Challenges in Solar Power Projects on the Island of the Gods
Although rooftop solar panels offer great benefits to hotels, resorts and villas inIsland of the GodsHowever, this project is not without risks that must be considered. Here are some of the main challenges:
- Tropical Weather and Natural Risks
Areas such asUbud, Seminyak, Nusa Dua, and CangguIndonesia has a humid tropical climate with high rainfall, especially during the rainy season. Heavy rain, strong winds, and lightning can damage solar panels and inverters if protection systems are not optimal. Furthermore, coastal areas such asJimbaran and Sanursusceptible to corrosion due to salty sea air, affecting the life of the equipment.
Installation & Construction Risks
Many luxury hotels and villas have complex building structures, with sloping roofs, rooftop gardens, or unique architectural designs. The solar power plant installation process at locations such asUluwatu or a villa on the hill Tabanan requires specialized techniques and experienced experts. Installation errors can cause panel damage or even safety risks for hotel employees and guests.
Property Risk and Third Party Liability
Hotels that continue to operate during the installation of solar power plants are at risk of fire.demands from guests or third parties in case of accidents or property damage. For example, a falling panel or unsecured cable could cause injury to guests. This legal risk is an important reason for EPCs and developers to prepareThird Party Liability insurance protection.
- Operational Risks and Energy Disruptions
Modern rooftop solar systems are often equipped with battery storage and digital monitoring. Inverter failure, battery failure, or IoT system disruption can cause energy downtime, impacting hotel operations and guest comfort. - Financial and Investment Risks
Investing in rooftop solar power plants is no small expense. Without the right protection strategy, losses from accidents, equipment damage, or third-party claims can impact the project’s cash flow and ROI.
With this understanding of risk, EPCs and developers can be better prepared to design risk mitigation strategies, including additional security systems, regular inspections, and especially proper insurance protection to ensure the project remains safe and profitable.
The Right Type of Insurance for the Island of the Gods Solar Power Project
For EPCs and developers building rooftop solar power plants on the Island of the Gods, choosing the right insurance is not just a formality, but a strategic step to…protect business investments, assets and reputation. Some types of protection that must be considered include:
- Construction All Risks (CAR) / Erection All Risks (EAR)
This type of insurance protects projects during the construction and installation phases of solar panels. Covered risks include material damage, equipment failure, fire, and natural disasters. For projects in locations such asUluwatu or Tanah Lot, CAR/EAR ensures that damage due to extreme weather or complex roof conditions remains protected. - Property All Risks
Once the project is completed and the solar power plant begins operating, Property All Risks covers damage to the solar panels, inverter, battery storage, and digital monitoring system. This protection is crucial given the high value of renewable energy equipment investments, and damage can lead to operational downtime. - Third Party Liability (TPL)
TPL covers third-party claims resulting from property damage or injuries resulting from solar power projects. For example, hotel guests or staff may suffer accidents during solar panel installation or during routine maintenance. This insurance provides significant financial and legal protection for EPCs, developers, and hotel owners. - Business Interruption / Loss of Profit
Solar power system damage or operational disruptions can directly impact hotel and resort operations, including guest comfort. Business Interruption covers financial losses resulting from downtime, ensuring project cash flow remains secure even in the event of a power outage. - Professional Indemnity
For EPCs, developers, or consultants involved in the design and installation of solar PV systems, Professional Indemnity protects against claims resulting from technical errors, energy capacity calculations, or installation recommendations that cause losses to other parties. - Optional: Cyber & Data Risks
Many modern solar PV systems are equipped withIoT and digital monitoring, so software failures, hacking, or system disruptions can impact operations. Cyber protection helps mitigate these risks, maintaining data integrity and system performance.
With this combination of insurance, EPC and developers can ensure investments, assets and business reputation remain protected. A mature protection strategy also increases investor and hotel owner confidence towards the sustainability of solar energy projects.
The Strategic Role of Insurance Brokers in the Island of the Gods Solar Power Plant Project
In rooftop solar power projects, especially in tourist areas such asIsland of the GodsThe role of an insurance broker is crucial. EPCs, developers, and hotel owners often face complex, multi-layered risks: from construction risks and equipment failures to third-party liability, to potential operational disruptions due to weather or system failures. This is where insurance brokers come in.strategic partners who understand the intricacies of the renewable energy industry and risks.
- Identify Risks in Detail
Experienced brokers help map all the risks of a solar power plant project from inception to operation. For example, the locationJimbaran or Nusa Duahas the potential for strong winds and high exposure to corrosion due to sea air, while villas inUbud and Tabanan facing the risks of complex roofs and heavy rain. With this mapping, the protection selected is more precise and comprehensive. - Create the Right Insurance Package
The broker’s role is to design a combination of insurance policies tailored to the project’s needs: CAR/EAR, Property All Risks, Third Party Liability, Business Interruption, and Cyber & Data Risks. With this approach, EPCs and developers avoid purchasing excessive coverage while still maintaining their coverage guaranteed from critical risks which may disrupt the project. - Negotiation with Insurance Company
For EPCs or developers new to the renewable energy sector, the policy negotiation process can be confusing. Brokers simplify this process by filtering the best options and tailoring realistic limits, deductibles, and terms to the scale of the project. This is crucial forPLTS investments are optimally protected without burdening the budget. - Claim Assistance and Periodic Evaluation
In the event of a claim due to panel damage, operational disruption, or third-party claims, the broker acts as a liaison between the project and the insurance company. They ensure the claims process is smooth.smooth, fast, and transparent. In addition, brokers also help evaluate policies periodically to remain relevant to project conditions and changing risks, including developments in solar energy technology.
With the support of insurance brokers, EPCs, developers and hotel owners can focus on renewable energy project development, increase energy efficiency, and strengthen the image of being environmentally friendly without worrying about financial risks.
Conclusion
The development of rooftop solar power plants (PLTS) in the Island of the Gods and Greater Jakarta (Jabodetabek) presents a tremendous opportunity for EPCs, developers, hotels, and the industrial sector. By harnessing abundant solar energy, solar power projects not only help reduce operational costs and increase energy efficiency but also strengthen the business’s image as an environmentally friendly entity, in line with the trend.renewable energy global.
However, this potential comes with a variety of risks: extreme weather, panel and inverter damage, construction risks, third-party liability, and operational disruptions caused by digital systems. Without proper protection, financial and reputational losses can be significant.
This is where the project insurance becomes vital. With the right combination of policies—from CAR/EAR, Property All Risks, Third Party Liability, Business Interruption, to Cyber & Data Risks options — EPCs and developers can ensure all assets and investments remain protected. The assistance of experienced insurance brokers likeL&G Insurance Brokersis key to navigating the complexity of risk, designing optimal protection packages, and simplifying the claims process in the event of a loss.
Through a well-thought-out protection strategy, solar power projects are not only a profitable renewable energy solution, but also safe, sustainable, and ready to face future challenges.
📞 Protect your solar power project now with L&G Insurance Brokers. Get in touch 08118507773 For a free risk assessment and comprehensive insurance consultation tailored to the needs of EPCs, developers, hotels, and villas throughout Greater Jakarta and the Island of the Gods. With the right coverage, your solar energy remains secure, your investment is protected, and your project runs smoothly and on schedule.
