Promoting the National Energy Transition Through Rooftop Solar Power Plants
The Indonesian government is accelerating the national energy transition program to achieve the Net Zero Emission (NZE) target by 2060. One of the main pillars of this program is the utilization of solar energy through the construction of Solar Power Plants (PLTS), especially rooftop solar systems which are now starting to be widely used by households, offices, and industries throughout Indonesia.
The Ministry of Energy and Mineral Resources (ESDM) has launched various policies and incentives, including the National One Million Rooftop Solar Movement, to encourage people to switch to clean and independent energy sources. However, despite this significant potential, solar power plant investment poses significant challenges, including technical, operational, and financial risks that cannot be ignored.
This is where the role of PT Liberty and General Insurance Broker (L&G) becomes very important.
As an experienced insurance broker in the energy and infrastructure projects sector, L&G plays a role in helping solar power plant owners, EPC contractors, and O&M operators understand the risks, choose the right policy, and ensure optimal insurance coverage from the beginning to the end of the project.
L&G not only acts as an intermediary between clients and insurance companies, but also as a risk consultant who understands the ins and outs of energy projects, including rooftop solar power plants which are now part of the national agenda towards a green economy.
Why Risk Management is Important in Rooftop Solar Power Plants
Rooftop solar power plants consist of various components, such as solar panels, inverters, mounting structures, cables, protection systems, and the building’s electrical network. Each component carries the potential risk of damage or failure, which can result in significant losses.
Some of the main risks of rooftop solar power plants include:
- Technical and installation risks: design errors, use of inappropriate materials, or non-standard installation.
- Weather risks: strong winds, lightning, storms and heavy rain can damage the panels.
- Risk of fire: due to electrical short circuit, overheating, or inverter system failure.
- Risk of theft: especially in solar power systems in open areas or remote industries.
- Financial risk: loss of revenue due to system downtime.
Without proper risk management, these losses not only disrupt cash flow, but can also reduce the return on investment (ROI) of clean energy projects.
Solar Power Plant Risk Stages: From Design to Operation
Solar power plant risk management needs to be carried out at every stage of the project:
- Design and Engineering Stage
- System capacity calculation error.
- Selection of components that do not meet standards.
- Inadequate planning of grounding or lightning protection systems.
- Installation Stage (EPC Stage)
- Potential for physical damage during transportation and installation.
- Risk of work accidents.
- Technical issues during system testing.
- Operation and Maintenance (O&M) Phase
- Damage due to extreme weather or lightning strikes.
- Failure of the inverter or internal electrical system.
- Panel theft and operational disruptions.
- Decreased panel efficiency due to lack of maintenance.
Types of Insurance Needed for Rooftop Solar Power Plants
To protect solar power investments comprehensively, a combination of several types of insurance policies is required:
- Erection All Risks (EAR) / Construction All Risks (CAR)
Protecting the solar power plant during construction and installation against the risk of fire, explosion, lightning, flood, human error, or work accidents.
Example:
If during installation, some panels fall and are damaged due to strong winds, this loss can be claimed through the CAR/EAR policy.
- Property All Risks (PAR) Insurance
Covers physical damage to solar power plants that are already operating due to fire, lightning, floods or storms.
Solar power plants are considered part of protected building assets.
- Machinery Breakdown (MB) Insurance
Covers damage to machines or electronic components, such as inverters, due to internal faults or power surges.
- Business Interruption (BI) Insurance
Provides compensation for lost income due to operational disruptions caused by damage to solar power plants.
- Public Liability Insurance
Bear legal responsibility towards third parties, for example if a fire from the solar power system spreads to neighboring buildings.
Combining Solar Power Plants with Existing Property Insurance
For homes, offices, or factories that already have a property insurance policy, the most efficient solution is to incorporate solar power into the policy through an additional endorsement.
Practical steps:
- Inventory of solar power plant assets
- Calculate the investment value of solar power plants (panels, inverters, cables, mounting, and installation).
- Consultation with an insurance broker
Brokers such as L&G Insurance Broker will assess the risk and prepare policy wording so that the solar power plant is recognized as part of fixed assets.
Add special endorsement
For example:
“This policy also covers damage or loss to the Solar Power Generation (PLTS) system permanently installed on the insured building.”
Update total insurance value
Insurance value = Building value + PLTS value.
Premium adjustment
The premium increase is usually only 0.05%–0.1% of the solar power investment value.
Rooftop Solar Power Plant Insurance Premium Simulation
- Information Value (Rp)
- Factory building value 20.000.000.000
- Rooftop PV Value 2.000.000.000
- Total insurance value 22.000.000.000
- Property insurance premium rates 0,07%
- Total annual premium Rp. 15,400,000
With an additional investment of Rp 2 billion in solar power plants, premiums only increase by around Rp 1.4 million per year — efficient and providing comprehensive protection.
Duties and Roles of Insurance Brokers in Solar Power Plant Projects
Insurance brokers such as PT Liberty and General Insurance Broker (L&G) have the primary responsibility of helping clients understand and map risks to ensure their solar power plant projects run safely and securely.
The main tasks of a broker include:
- Technical Risk Analysis
- Conduct an in-depth study of the design, location, and investment value of solar power plants.
- Developing an Insurance Strategy
- Determine the policy combination that suits the project stage (EPC, O&M, or integration with the property).
- Negotiation with Insurance Company
- Looking for the best premiums and terms for clients.
- Creating Custom Policy Wording
- Adjust the clause so that protection covers the specific risks of solar power plants.
- MentoringAt Claim Time
- Assisting the documentation and compensation negotiation process to run quickly and fairly.
- Providing Education to Clients
About the importance of routine maintenance, technical documentation, and compliance with safety standards.
Case Study: The Role of Insurance Brokers in Rooftop Solar Power Plant Claims
A manufacturing plant in Bekasi installed a 500 kWp rooftop solar power plant worth Rp 4.5 billion. The project was managed by a national EPC contractor and facilitated by an Insurance Broker to arrange the insurance program.
Chronology of events:
Six months after the solar power plant was operational, a tornado occurred which caused some of the panels to lift and fall from the roof.
Material losses are estimated to reach IDR 350 million.
Insurance Broker Steps:
- Immediately conduct a field survey with the loss adjuster.
- Prepare chronological reports and photos of damage for insurance companies.
- Assist clients in completing claim documents (invoices, proof of purchase, EPC contracts).
- Negotiate claims so that the compensation matches the actual value.
As a result, the insurance company approved a claim payment of Rp 340 million in just three weeks.
Because the solar power plant has been endorsed in the factory’s Property All Risks policy, the claims process was fast and without rejection.
This case demonstrates that the presence of a competent insurance broker is crucial in ensuring clients receive maximum protection and compensation.
Additional Risk Prevention Steps for Rooftop Solar Power Plants
In addition to having insurance, solar power plant owners need to implement the following preventive measures:
- Use internationally certified modules and inverters (IEC, TUV).
- Make sure the installation is carried out by an authorized EPC contractor.
- Perform regular inspections of grounding and lightning protection systems.
- Clean the panels regularly to maintain efficiency.
- Install surveillance cameras (CCTV) in the PLTS area.
- Keep all project documentation and maintenance reports to facilitate claims.
- Benefits of Insurance Protection for Solar Power Plant Owners and Investors
- Ensuring the security of clean energy investments.
- Meet bank or investor financing requirements.
- Increase public trust in renewable energy projects.
- Maintaining cash flow stability and project ROI.
- Supporting the company’s ESG (Environmental, Social, Governance) program.
Conclusion: Insurance Is a Pillar of Security for Clean Energy Investments
Rooftop solar power plants are a symbol of Indonesia’s progress toward energy independence and a green economy. However, despite their benefits, there are potential risks that must be managed wisely.
Through a systematic risk management approach and proper insurance protection, every home, office, or factory owner can ensure that their investment remains safe and sustainable.
PT Liberty and General Insurance Broker (L&G) is ready to be your trusted partner in:
- Assessing the risks of solar power plants,
- Develop a comprehensive insurance program, and
- Accompany you until the claim process is complete.
With the support of a professional insurance broker, clean energy is not only environmentally friendly — it’s also financially secure.
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DON’T WASTE YOUR TIME AND SECURE YOUR FINANCIAL AND BUSINESS WITH THE RIGHT INSURANCE.
HOTLINE L&G 24 JAM: 0811-8507-773(CALL – WHATSAPP – SMS)
Website: lngrisk.co.id
Email: halo@lngrisk.co.id
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