A team of researchers from Politeknik Negeri Medan (Medan State Polytechnic) and partner universities has found that installing a large-scale solar power plant on campus buildings is not only environmentally sound but also financially attractive. Published in 2026 in the International Journal of Applied Research and Sustainable Sciences (IJARSS), the study shows that a campus solar photovoltaic (PV) system can recover its investment in just 2.55 years, while delivering electricity at a fraction of conventional grid prices.
The research was conducted by Cholish, Muhammad Rusdi, Faisal Fahmi Hasan, and M. Anhar Pulungan from Politeknik Negeri Medan, Abdul Azis from Universitas Muhammadiyah Sumatera Utara, and Zarina Binti Ismail from Tuanku Sultanah Bahiyah Polytechnic, Malaysia. Their analysis focuses on the feasibility of solar power plants in supporting the electricity needs of academic buildings at Medan State Polytechnic, one of Indonesia’s major vocational higher education institutions.
The findings matter at a time when universities face rising electricity costs and growing pressure to adopt cleaner energy sources. Campuses operate for long hours, rely heavily on lighting and electronic equipment, and often have large roof areas suitable for solar panels. This combination makes higher education institutions strong candidates for renewable energy adoption—if the economics make sense.
Rising Energy Costs, Untapped Solar Potential
Electricity consumption at Medan State Polytechnic is substantial. Based on field surveys, the total installed electrical load across campus buildings reaches 1,352.6 kilowatts, with daily energy use averaging 5,410 kilowatt-hours. Until now, all of this demand has been supplied by the national electricity grid operated by PT PLN, exposing the campus to high operating costs and long-term tariff uncertainty.
Indonesia’s abundant solar radiation presents a clear alternative. Yet, solar installations are often perceived as expensive and risky, especially for public institutions with limited budgets. The researchers addressed this concern by examining whether a carefully planned solar power plant could meet campus demand efficiently and economically.
How the Analysis Was Done
Instead of relying on complex technical jargon, the team used a practical planning approach. They combined real electricity consumption data from campus buildings with local solar radiation information and land availability, including rooftop space.
To identify the most efficient system size, the researchers used HOMER software, a widely applied simulation tool for renewable energy planning. The software evaluated different combinations of solar panels and inverters to determine the most cost-effective configuration. The team then conducted a detailed economic analysis covering investment costs, annual maintenance, life-cycle expenses, and long-term savings.
Key Financial Findings
The study presents a clear picture of costs and benefits:
- Initial investment: Approximately IDR 8.56 billion for solar panels, inverters, and construction materials.
- Installed capacity: Around 1.5 megawatts peak (MWp) using more than 2,700 solar panels.
- Annual maintenance cost: About 1 percent of total investment, or IDR 85.6 million per year.
- Project lifespan: Assumed at 25 years, in line with equipment warranties.
When all costs over the system’s lifetime are considered, the life-cycle cost reaches roughly IDR 9.86 billion. However, the electricity produced by the solar power plant costs only IDR 337 per kilowatt-hour, far below the average grid tariff of IDR 1,699 per kilowatt-hour.
Fast Payback, Long-Term Savings
One of the most striking results is the payback period. By replacing grid electricity with solar power, the campus can save about IDR 3.35 billion per year on electricity bills. At this rate, the initial investment is recovered in just 2.55 years, even without factoring in potential tariff increases in the future.
“From an economic perspective, the solar power plant is clearly feasible and competitive compared to conventional electricity sources,” the authors note, emphasizing that the cost difference strongly favors solar energy for large institutional users like universities.
Beyond Cost: Environmental and Educational Impact
The benefits extend beyond financial savings. Solar power significantly reduces carbon emissions associated with campus operations, supporting national and institutional sustainability goals. For Medan State Polytechnic, the system also functions as a living laboratory.
According to the authors, students—especially those in engineering and vocational programs—can directly observe and study how renewable energy systems operate in real conditions. This hands-on exposure strengthens technical skills and aligns education with future energy trends.
“Solar power plants on campus are not only an energy solution but also an educational asset,” the research team explains, highlighting the dual role of renewable energy in cost efficiency and learning innovation.
Implications for Policy and Higher Education
The findings offer a practical model for other universities and public institutions across Indonesia. With careful planning and accurate load analysis, solar energy investments can be both financially sound and strategically valuable. Policymakers may also use this evidence to justify incentives or funding schemes for renewable energy projects in the education sector.
The authors recommend that future work move beyond planning toward real-world implementation, including integrated system design, battery and inverter optimization, and digital monitoring systems. Such steps would further enhance efficiency and reliability while supporting the development of “green campuses.”
Author Profiles
- Cholish, Lecturer at Politeknik Negeri Medan
- Muhammad Rusdi, S.T., M.T. — Lecturer at Politeknik Negeri Medan,
- Faisal Fahmi Hasan Lecturer at Politeknik Negeri Medan
- M. Anhar Pulungan— Lecturer at Politeknik Negeri Medan
- Abdul Azis, S.T., M.T. — Lecturer at Universitas Muhammadiyah Sumatera Utara
- Zarina Binti Ismail, Ph.D. — Lecturer at Tuanku Sultanah Bahiyah Polytechnic, Malaysia,
Source
Article Title: Analysis of the Costs and Benefits of Solar Power Plants in Supporting the Energy Needs of the Medan State Polytechnic Building
Journal: International Journal of Applied Research and Sustainable Sciences (IJARSS)
Year: 2026
DOI: https://doi.org/10.59890/ijarss.v4i1.138
Official URL: https://jpnmultitechpublisher.my.id/index.php/ijarss/index
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