Companies establish Corporate Social Responsibility (CSR) initiatives as a commitment to social contribution, improving well-being, and protecting the operating environment. Through CSR, companies can maintain harmonious relationships with the community and build a positive image.
Activities include healthcare services, community empowerment, training, and environmental conservation campaigns—all aimed at creating a positive impact on the surrounding community.
Solar PV (Photovoltaic) installation is one form of CSR activity that positively impacts the community regarding energy sources, ensuring a continuous energy supply without reliance on the main grid.
Why can Solar PV be part of CSR?
Implementing Solar PV as a CSR program helps provide clean energy, reduce carbon emissions, and meet the community's electricity needs.
Solar PV installation programs can be broken down into various smaller activities, such as renewable energy educational seminars, technician training, research platforms for academics, Solar PV assistance for MSMEs (Micro, Small, and Medium Enterprises), and eco-friendly CSR branding showcases.
Beyond the social aspect, using Solar PV for CSR demonstrates your company's commitment to renewable energy generation. This is evidenced by data regarding the energy output from the installation and the resulting energy efficiency.
Good governance attracts investor funding opportunities through "green financing" principles, which offer competitive interest rates for eco-friendly projects. Companies with Solar PV systems also find it easier to fulfill administrative requirements.
Solar PV Implementation as CSR in Indonesia
The demand for clean energy aligns with the use of Solar PV for CSR. Below are examples of Solar PV implementation as CSR.
1. Rooftop Solar PV for Schools
PT Paiton Energy installed rooftop Solar PV systems at three schools—SMKN 54, SMKN 53, and SMKN 70 Jakarta—to support sustainable development and provide educational resources for students. Furthermore, the rooftop Solar PV systems improve energy efficiency, resulting in electricity cost savings for the schools.
For comparison, SMKN 54's monthly electricity bill prior to the rooftop Solar PV installation ranged from IDR 15 million to IDR 20 million. However, following the installation of the solar power system (PLTS), SMKN 54 has been able to save between IDR 2 million and IDR 3 million per month on electricity costs.
2. Hospital Solar Power Systems
PHC Hospital Surabaya, a hospital affiliated with the State-Owned Enterprise (BUMN) holding group, installed a solar power system with a capacity of 147 kWp in 2023. This installation generates 186,000 kWh of electricity, equivalent to 4–5% of the hospital's operational electricity needs.
Solar Power CSR Program Schemes
CSR initiatives involving solar power systems require collaboration among foundations, partners, and beneficiaries. Implementing such a program requires a structured workflow.
1. Conducting a Feasibility Study
The foundation determines the installation site based on specific objectives, such as reducing electricity costs or fostering an eco-friendly ecosystem.
Once this information is gathered, the technical team surveys the site to assess the existing electrical system and civil construction. They then calculate potential daily solar irradiance, analyze electricity load profiles, and verify structural integrity.
2. Designing the Solar Power System
Following the site survey, the installation provider creates a system design based on the field report. The resulting design will be either an on-grid or off-grid system.
Once the foundation approves the design, the project moves to the installation phase. This process includes installing mounting structures and solar modules, positioning inverters, wiring connections to the inverters, and installing grounding systems for safety.
3. Testing
The installation process must undergo testing to ensure the generated voltage remains stable and safe—particularly for the local community using the system. Only after the system passes these tests is the solar power asset officially handed over to the beneficiary.
4. Technician Training
For a solar power CSR program to remain sustainable, basic technical training is essential. Training covers topics such as reading energy meters, scheduling solar panel cleaning, and performing minor troubleshooting procedures. It is far better if all training materials are compiled into a comprehensive guidebook.
5. Periodic monitoring
Solar PV systems equipped with smart inverters can connect to the internet. The foundation can monitor the system's performance in real-time. This allows for the observation of tangible evidence of the company's commitment to renewable energy, as reflected in total kWh production, energy efficiency gains, and the volume of carbon emissions successfully avoided.
Long-term impact of solar PV CSR programs
Solar PV CSR programs can serve as infrastructure investments that enable a region to develop its own energy ecosystem.
1. Energy Independence and the Village Circular Economy
Remote areas that previously relied on diesel generators faced high costs for liquid fuel, the price of which is volatile. With solar power plants (PLTS), these energy operating costs are drastically reduced.
Village funds or corporate budgets—previously consumed by generator fuel—can now be redirected toward productive programs such as tourism infrastructure improvements, capital for local MSMEs, or educational facilities. This fosters a much healthier economic cycle.
2. Decentralized Infrastructure Resilience
Installing off-grid solar power systems at various public facilities effectively creates independent microgrids. The advantage is that the area gains high resilience.
In the event of a large-scale grid failure caused by extreme weather or natural disasters, vital infrastructure—such as village health centers, clean water pumps, and local telecommunication towers—can continue to operate normally.
3. Measurable Long-Term Decarbonization
Solar modules have a lifespan of 20 to 25 years. This means the area passively contributes to reducing carbon emissions for over two decades. This emission reduction is not merely a claim but is backed by empirical data measurable through inverter monitoring systems. For ecotourism areas, this low carbon footprint serves as a powerful unique selling proposition to attract environmentally conscious international tourists.
4. Human Resource Capacity Building
A social impact often overlooked is the transfer of technological knowledge. Residents involved in basic operations and maintenance gradually acquire new skills. Such programs can give rise to skilled electrical installers or solar panel maintenance experts, effectively elevating the capabilities of the local workforce.
5. Solid ESG Scores for Donor Companies
For companies channeling CSR funds, this represents an investment in their reputation. Their sustainability reports will be underpinned by a robust foundation of Environmental, Social, and Governance (ESG) metrics. They possess a tangible portfolio of green energy assets that generate power for decades, rather than merely one-off social programs.
Challenges of using solar power (PLTS) for CSR
Implementing solar power systems for CSR is not as simple as it might seem. Once installation is complete, maintenance and upkeep become significant hurdles. Consequently, many systems fall into disuse after just three years of operation.
Here are the challenges associated with solar power CSR projects:
1. Use of lower-quality components
Solar panels are designed for a 25-year lifespan. This longevity is only achievable with a routine maintenance schedule and the use of high-quality supporting components. Batteries are often the component that suffers most.
Many solar CSR programs utilize VRLA batteries because they are easier to handle than Lithium-Ion batteries. However, VRLA batteries typically last only 3–5 years before performance declines—a process exacerbated by poorly managed charge and discharge cycles.
2. Uncontrolled electrical loads exceeding capacity
Solar power systems are designed with strict load capacities tailored to specific usage needs. Excessive use subjects the batteries to power surges.
While solar CSR systems are provided to the community free of charge, residents sometimes take advantage of the free power to run high-demand appliances like cooling units or water pumps. Excessive use can overload the inverter, risking total system failure.
3. Knowledge gap
Foundations often provide only brief training sessions following the handover. When technical issues arise, local technicians may be too intimidated to attempt repairs. Meanwhile, expert technicians are usually based in major cities; bringing them in incurs high transportation costs. Consequently, the logical, albeit unfortunate, step is often to simply let the components fail completely.
4. Cessation of funding
CSR programs rely on funding from the parent company or monthly community contributions. These funds cover maintenance and component replacements.
If funding dries up, whether due to the community's financial difficulties or the company withdrawing support, the solar power system ceases to operate. ## Batari Energy Provides Solar Power System Installation for CSR Initiatives.
Batari Energy Provide Solar PV Installation for Commercial and CSR Purpose
Is your company looking to implement a CSR initiative through the installation of a solar power system? If so, Batari Energy can assist you.
Batari Energy is a solar power system installation provider with an extensive portfolio of projects across various regions. Interested in installing a solar power system as part of your CSR program? Click this link for more information!