Build-Own-Operate — BOO
Commercial / Business
BOO, or Build-Own-Operate, is a solar PV (PLTS) financing scheme in which a developer builds, owns, and operates the installation on land or rooftop belonging to the tenant, while the tenant pays for electricity per kWh over the contract term — typically 10-25 years. There is no upfront capital outlay on the tenant's side.
For industrial customers, the biggest barrier to adopting rooftop solar (PLTS Atap) is often not technical but financial: a 500 kWp system at a CapEx of ~Rp 9-12 million per kWp [docs/data-kalkulator.md] means Rp 4.5-6 billion in capital competing against production expansion plans or working capital. The BOO scheme removes this barrier.
Under a BOO structure, an independent developer (usually an energy entity or IPP) bears the entire CapEx, permitting, installation, operation, and maintenance. The tenant signs a Power Purchase Agreement (PPA) at a fixed per-kWh tariff — usually lower than the prevailing PLN industrial tariff — for the contract duration. Throughout the contract, ownership of the installation remains with the developer, including operation and maintenance (O&M) obligations and responsibility for system performance.
After the contract, depending on the agreement structure, ownership may be transferred to the tenant (BOOT — Build-Own-Operate-Transfer) or extended. This scheme has become an active B2B entry point in Indonesia's manufacturing, F&B, and warehousing sectors.
Indonesian PLTS Application Example
A textile factory with a 1,385 kVA contracted load (tariff class I-3 medium voltage) and a PLN tariff of Rp 1,114.74/kWh [PLN tariff adjustment Q1 2026] can sign a 500 kWp BOO agreement at a PPA tariff of, for example, Rp 950-1,050/kWh over 15 years. The tenant incurs no CapEx; the BOO developer bears installation, IUPTLU permitting, and lifecycle O&M.
Sources & References
- Permen ESDM No. 2 Tahun 2024 on Rooftop Solar (the IUPTLU framework governing BOO developers) — Ministry of Energy and Mineral Resources (ESDM) (2024)
- SolarPlanner.id Calculator Data, SECTION 1.9 (industrial PLTS CapEx) — SolarPlanner.id (2025)
- Rooftop Solar PV Business Models — Build-Own-Operate frameworks — IEA (2023)
See Also
Performance Ratio
(PR)Performance Ratio, or PR, is the ratio between the actual electricity produced by a solar PV (PLTS) system and the theoretical energy it should produce at STC conditions with the same irradiance. PR is a system-quality indicator commonly used by EPCs and IPP developers to monitor PLTS performance over its operating life.
BOS
(Balance of System)BOS, or Balance of System, is every component of a solar PV (PLTS) system other than the solar panels themselves: the inverter, mounting structure, DC and AC cabling, electrical protection, combiner box, export-import kWh meter, and installation labour. In an Indonesian residential on-grid system, BOS typically accounts for 25-40% of the total system cost.
On-Grid
On-grid, or grid-tied, is a solar PV (PLTS) scheme that is connected in parallel with the PLN grid and uses no battery. The inverter synchronizes its output to PLN's voltage and frequency; when the panels produce more than the load, the surplus flows to the grid, and when production is insufficient, the load draws from the grid.