Solar plus storage remains less bankable than standalone solar PV

By Pandu Setiabudi

Standalone solar photovoltaic (PV) projects are considered to have reached a level of maturity that makes them increasingly easier to finance. Meanwhile, solar plus storage projects continue to face a number of challenges before achieving the same level of bankability. The issue was discussed during the EESA Summit 2026 on Tuesday (June 9).

Jessica Rolindrawan, Senior Vice President of renewable energy company PT Alam Energy, said solar PV financing has advanced significantly compared with several years ago, thanks to stronger operational track records, proven technologies, improved risk understanding among investors and lenders, and increasingly standardized project structures.

"Proven operating track record is one of the most important ones. Back in 2020, it was very difficult for us because the justification of the track record wasn't there," Jessica said.

According to her, these developments have increased financial institutions confidence in the solar sector. However, she noted that the same conditions do not yet fully apply to solar plus storage projects. She said projects combining solar PV and battery storage still face challenges related to commercial viability, technical bankability, risk allocation and mitigation, as well as financing readiness.

"Commercial viability still remains very critical. While storage can provide the benefit, the value must be sufficient enough to justify the additional investment that will be transferred to customers and project developers," she said.

Jessica added that one of the key challenges facing solar plus storage projects is ensuring that the additional benefits provided by battery storage can generate sufficient economic value to justify the extra investment required.

A similar view was expressed by Woo Young Lee, Investment Officer at the International Finance Corporation (IFC). He said the sector still faces challenges in developing business frameworks capable of capturing the full range of services that batteries can provide.

"There's an absence of the fully developed framework to monetize the full range of services that battery can provide," Woo said.

According to him, batteries can be used not only for peak shaving but also for other services such as frequency regulation. However, the value of these services is not yet fully reflected in most existing contractual arrangements.

Despite these challenges, both Jessica and Woo believe the outlook for solar plus storage remains promising.

"Energy storage still has some opportunities. Beyond generating renewable energy, energy storage can create additional value. We can optimize the site selection like in the remote area," Jessica said.

Jessica believes the prospects for solar plus storage can be improved through selecting locations with suitable demand profiles, optimizing battery sizing, developing commercial models that enhance project economics, and building stronger operational track records to expand access to financing.

Editing by Reiner Simanjuntak