Liga Asuransi – Booming projects renewable energy in the regionGreater Jakarta now more and more real. In the last two years, installation Rooftop Solar Power Plant (Solar Power Plant)Prices have increased significantly in office buildings, industrial areas, manufacturing plants, shopping centers, and modern residences.solar panel, government regulatory support, and increasing awareness of clean energy are driving this metropolitan area to become a center for project growth.solarnational.
For the perpetrator EPC (Engineering, Procurement & Construction) And renewable energy developers This phenomenon is not just a trend, but a golden opportunity. The Indonesian government is targeting a portion of renewable energy by 23% by 2025, with rooftop solar power being the backbone. With its large number of commercial and industrial buildings, Greater Jakarta (Jabodetabek) is a strategic market for the expansion of rooftop solar projects—from small-scale installations to multi-billion-dollar industrial projects.
However, amidst this enthusiasm, there is one important aspect that often goes unnoticed:risk protection through project insuranceMany EPC players and developers focus too much on technical and business aspects, but fail to develop a robust risk mitigation strategy. Yet, rooftop solar projects are vulnerable to extreme weather, fires caused by short circuits, panel theft, design or installation errors, and operational disruptions, all of which can lead to significant losses.
In this article, we will discuss:
- Bright prospects for the rooftop solar power industry in Greater Jakarta and business opportunities for EPCs & developers.
- Hidden risks that are often overlooked in solar energy projects.
- Relevant types of project insurance coverage, including their benefits for contracts and financing.
- The crucial role of insurance brokers in providing comprehensive protection solutions.
- Strategic recommendations to ensure your project remains safe and sustainable.
For project insurance protection consultationSolar Power PlantYou, contactL&G Insurance Broker— a trusted partner for insurance solutions in the renewable energy sector.
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Bright Orientation for the Rooftop Solar Power Plant Industry in Greater Jakarta
Imagine a megacity with millions of square meters of empty rooftops bathed in tropical sunshine year-round. That’s it.Greater Jakarta—areas with potentialsolar energyThe combination of high electricity demand, the density of commercial and industrial buildings, and government regulatory pressures create a marketRooftop solar power plants in this area are really “hot” and promising.
The government throughRegulation of the Minister of Energy and Mineral Resources No. 2/2024encourage accelerated utilizationrenewable energy, including rooftop solar power plant, as part of the national energy transition target. This step is reinforced by PLN’s program and an increasingly clear net metering scheme, opening up significant opportunities for players.EPC and developers to expand the market. Many companies, both local and multinational, are starting to make use of solar energy as part of their sustainability strategy.
Economically, the Greater Jakarta area is the heart of Indonesia’s business activity. From textile factories in Bekasi, logistics warehouses in Tangerang, to skyscrapers in Sudirman—all require a stable electricity supply but are increasingly aware of its importance.clean energy. It’s no surprise that many businesses are starting to convert their rooftops into productive “energy fields.”
According to data from the Ministry of Energy and Mineral Resources, the technical potentialRooftop solar power plants in Greater Jakartaestimated to reach hundreds of MWp. Its realization continues to increase year after year. Many major projects have been and are being undertaken by local and foreign EPCs—from installations in major malls and industrial areas to large-scale commercial projects.
Interestingly, this market is not only growing on the demand side, but also becoming increasingly competitive on the supply side. Many new EPC players and developers are entering the market, offering increasingly efficient pricing with more advanced and durable solar panel technology.
With this condition, it is clear that anyone who moves in the sectorsolar energyJabodetabek cannot be ignored. This is the “main arena” for business expansion.renewable energy, where opportunities and challenges combine to create great momentum.
Hidden Risks in Rooftop Solar Power Projects That Are Often Overlooked
Behind the bright prospects and huge market opportunities, the projectRooftop solar power plantsin the regionGreater Jakartaalso contains various risks that are often not realized by business actors, especiallyEPC and developerMany focus on system design, panel efficiency, and contract negotiations, but forget that a single incident can lead to significant financial losses, project delays, and even lawsuits.
- Installation & Construction Risks
The construction phase of a rooftop solar system involves more than simply installing panels on top of a building. The process involves working at heights, using heavy equipment, and even involving high-voltage electrical systems. Even minor installation errors or negligence in safety procedures can lead to workplace accidents, roof structural damage, and even fires. - Extreme Weather and Natural Disasters
Greater Jakarta (Jabodetabek) frequently experiences heavy rain, strong winds, and lightning. Rooftop solar panel installations are vulnerable to damage from storms or lightning strikes. This damage can result in significant repair costs and prolonged system downtime. - Technology and System Risks
Solar panels, inverters, and other electrical systems can experience technical problems, short circuits, or component failure. If the system is not properly protected, these risks can result in lost energy production and high component replacement costs. - Third Party Risks and Legal Liability
This is a risk that is often overlooked. Roofing work or system leaks can cause damage to the main building or even to neighboring properties (e.g., a panel falling onto another property). This is where the potential for damage arises.legal liability claims arise, especially if the project is carried out in dense areas such as office buildings or industrial areas. - Operational Disruptions and Project Delays
Every project has a target operational timeframe. Accidents, damage, or disasters can delay projects by weeks or even months. This not only disrupts cash flow but can also trigger contractual penalties. - Risk of Theft and Vandalism
High-value solar panels and system components are often targets for theft, particularly during the construction phase when oversight is lacking. Vandalism and sabotage can also occur, particularly in open industrial locations.
Many EPCs and developers only become aware of these risks after an incident has already occurred. However, all of these potential losses…can be managed and minimized if from the start the project is equipped with proper risk protection, including insurance schemes specifically designed for renewable energy projects.
The Role of Insurance in Securing Rooftop Solar Power Projects
As project development continues to soarRooftop solar power plantsin the regionGreater Jakarta, it is increasingly clear that insurance is no longer an optional extra, but ratherstrategic components in project planningBoth EPCs and developers are now required to not only deliver clean energy solutions but also ensure the financial and operational sustainability of projects against all risks.
1. Construction/Erection All Risks (CAR/EAR)
This type of insurance protects projects during the construction or installation of solar panels, covering the risks of physical damage, work accidents, extreme weather, and construction errors. For rooftop solar projects, this coverage is crucial because the installation process involves high-risk work in sensitive areas such as building or factory rooftops.
2. Third Party Liability (TPL)
Installing solar power plants in densely populated areas such as offices, malls, or industrial areas can potentially cause damage to third-party property or injury to others. For example, panels could fall into parking lots, cables could catch fire and impact neighboring buildings, or technicians could be injured.causing roof leaks.TPL provides legal and financial protection against claims or demands from third parties..
3. Property All Risks (PAR)
Once a solar PV system is operational, the risks continue. Components such as panels, inverters, and cables are high-value assets that can be damaged by lightning, strong winds, fire, or theft. PAR provides comprehensive protection against the risk of physical damage that can occur after the project is completed.
4. Business Interruption / Loss of Profit
For many rooftop solar project owners, especially commercial and industrial developers, downtime is more than just a technical disruption — its lost revenue.Business interruption insurance protects against financial losses due to the interruption of solar power system operations due to insured risks (e.g. fire, storm, or major technical failure).
5. Professional Indemnity for Consultants & EPC
Many solar power projects involve specialized designs, engineering calculations, and professional recommendations. If design errors or technical oversights occur, the EPC or consultant could face legal action.Professional Indemnity Insurance protects against these risks, so that reputation and finances remain protected.
6. Cyber & Data Risks (Modern Addition)
Some modern solar PV systems are equipped with IoT sensors and cloud-connected digital monitoring systems. This opens up new risks, such as cyber attackwhich can disrupt operations or even compromise energy system data. Cyber insurance is now being considered as a complementary protection for renewable energy projects.
With the right protection scheme, EPC and developers can run projects with more peace of mind and professionalism.Insurance is not only a safeguard, but also a crucial factor in gaining investor trust, strengthening your position in tenders, and ensuring the long-term sustainability of renewable energy projects.
Risks and Challenges of Installing Rooftop Solar Power Plants in Greater Jakarta
While the rooftop solar power business opportunity in Greater Jakarta (Jabodetabek) appears very promising, the reality isn’t as simple as “installing panels and enjoying the results.” Behind this enormous potential, there are a number of real risks and challenges that EPCs and developers must anticipate before projects actually get underway.
- Risk of Extreme Weather and Physical Damage
The Greater Jakarta area is known for its heavy rainfall, sudden storms, and strong winds—especially during the transitional seasons. Rooftop solar panels can be damaged by hail, lightning strikes, or weak supporting structures that can withstand extreme weather. This damage can result in significant repair costs and significant operational disruptions. - Potential for Fire and Short Circuits
One hidden risk that’s often overlooked is the potential for short circuits or overheating in inverters and electrical installations. Several roof fires have been reported in solar power plant projects, particularly those without adequate protection systems. This not only damages the investment but also jeopardizes building safety and the contractor’s reputation. - Risk of Theft & Vandalism
In some areas, especially commercial or industrial projects located in open areas, panel and inverter theft is a real threat. The high value of these devices makes them attractive to criminals. - Risk of Delays and Legal Claims
Permitting issues, technical errors, or material supply delays can lead to project delays. In many cases, clients can claim compensation for losses resulting from these delays. EPCs and developers need financial protection to weather these situations.
All of the risks above demonstrate that rooftop solar installation is more than just a technical matter. Without proper mitigation strategies—especially through insurance coverage—potential profits can turn into significant liabilities. In the next section, we’ll discuss the important types of insurance that EPCs and developers must consider to ensure a safe and profitable project.
Types of Insurance Required for EPCs & Rooftop Solar PV Developers
Looking at potential risks and challenges in the project rooftop solar power plant, insurance protection is not a matter of formalities, but rather strategic components that determine project success. EPCs and developers looking to safeguard their investments and reputations must understand the relevant types of coverage. Here’s a summary of the main insurance policies to consider:
- Construction / Erection All Risks (CAR / EAR)
This insurance covers physical damage or financial loss that occurs during the construction or installation of solar panels, ranging from technical errors, weather damage, to fire. CAR/EAR ensures the project investment remains secure until the system is operational. - Third Party Liability (TPL)
Installing solar power plants on rooftops of buildings or factories carries the risk of damage to third-party property or injury to others. For example, panels could fall onto visitors’ vehicles or damaged cables could impact neighboring properties. A TPL protects EPCs and developers from third-party lawsuits that could be financially and reputationally draining. - Property All Risks (PAR)
Once the project is complete, the solar panels, inverter, and system components become valuable assets. PAR covers the risk of damage due to natural disasters, theft, or vandalism. This ensures the solar power plant can continue operating smoothly without major financial disruption. - Business Interruption / Loss of Profit
Solar power system downtime can cause significant losses, especially for commercial and industrial projects that rely on a stable power supply. Business interruption insurance protects against lost income due to damage or disasters covered by the policy. - Professional Indemnity
Design errors or technical negligence by the EPC or consultant could result in legal action.Professional Indemnity covers the claims, keeping the company’s reputation and finances safe. - Cyber & Data Risks (Optional, for Modern Projects)
Many modern solar power systems are connected to the IoT and the cloud for real-time monitoring. Cyber risks such as hacking or data manipulation can disrupt operations. Cyber insurance provides additional protection for projects that utilize digital technology.
By understanding and implementing these insurances, EPCs and developers not only protect investments, but also increase trust of clients, investors and stakeholdersProper protection ensures rooftop solar power projects in Greater Jakarta are safe, effective, and sustainable.
Conclusion and Recommendations
ProjectRooftop solar power plants in Greater Jakartapresents a great opportunity forEPC and developerto contribute to Indonesia’s renewable energy transformation. However, behind these bright prospects lies various risks—from extreme weather, work accidents, theft, equipment damage, to third-party lawsuits—which can disrupt the smooth running of the project and harm investment.
Implementing the right insurance protection strategy is key to ensuring the project runs smoothly, reducing potential losses, and maintaining the company’s reputation. Starting fromConstruction / Erection All Risks, Third Party Liability, Property All Risks, until Business Interruption and Professional Indemnity, each type of insurance has a strategic role in securing the investment and operation of rooftop solar power projects.
With the right protection, EPCs and developers can not only focus on construction and operations, but also increase investor, client and stakeholder confidenceInsurance protection is no longer optional—it is a critical necessity for facing the challenges of the renewable energy era.
To ensure your rooftop solar PV project in Jabodetabek is maximally protected,Consult your project insurance needs with L&G Insurance Brokers.
With extensive experience and a deep understanding of the risks in the renewable energy sector, L&G Insurance Brokers helps design insurance solutions that are accurate, complete, and efficient according to your specific project needs.
Contact us at 0811-850-7773 for free risk assessment and consult on the most appropriate insurance coverage for your rooftop solar project. Together with L&G Insurance Brokers, protect your investment, reputation, and the sustainability of your renewable energy project.
