Economic Feasibility of On-Grid Photovoltaic Solar Power Plants at Private Universities in Indonesia

Campus 2 of the National Institute of Technology (ITN) Malang shows its commitment to utilizing solar energy by adopting a 500 kWp photovoltaic solar power plant (PV), making it the largest in Indonesia for a private university. This research aims to evaluate the economic feasibility of photovoltaic solar power plants (PV) at Campus 2 of the National Institute of Technology Malang. The implementation of renewable energy, particularly photovoltaic solar power, is gaining attention due to its contribution to reducing greenhouse gas emissions and economic growth. However, the development of renewable energy sources faces several challenges, including the limitations of economic feasibility studies in Indonesia. A mixed-methods research approach is used, combining qualitative and quantitative data. Qualitative data are obtained from interviews with PV management staff, while quantitative data include net present value (NPV) calculations and payback periods (PBP). The research findings indicate that the on-grid photovoltaic solar power plant at Campus 2 of the National Institute of Technology (ITN) Malang has a capacity of 500 kWp, with a peak load reaching 380 kVA. The total project cost is Rp. 4,084,498,826, with annual operational and maintenance costs of Rp. 81,595,607. The price of electricity from the on-grid photovoltaic solar power plant is Rp. 930 per kWh. An NPV value of Rp. 7,789,395,602 indicates future profitability, while a PBP of 8.55 years demonstrates feasibility in terms of return on investment. In conclusion, the on-grid photovoltaic solar power plant at Campus 2 of the National Institute of Technology Malang has good economic feasibility due to factors such as controlled costs, competitive prices, a positive NPV, and a short PBP. Regular evaluations are necessary to ensure efficient operation and maximum benefits.