Non-Bank Financing Schemes and Business Model Development for Solar PV Rooftop at School Building in West Java Province
The Government of West Java is among the municipalities with the highest commitments towards SDGs and climate change issues. It is currently implementing a 2018-2023 subnational action plan on SDGs (RAD TPB) and aims for West Java to be
a “green province” by 2025. The province has listed potential projects on mitigation, and adaptation, particularly in the sectors of Sustainable Infrastructure, Sustainable Transportation, Renewable Energy, and Resilience to Climate Change (waste and water system).. Some of these projects have passed the pre-feasibility study stage but have not yet received funding, such as the installation of rooftop photovoltaic (PV) systems in hundreds of state school buildings. These identified potential projects in the pipeline generally have high investment requirements and have specific challenges at the project level. Challenges vary from technical to institutional issues, but all lead to the assumption that such projects are not yet commercialized, making it difficult to obtain adequate financing. Therefore, there is a need to develop a range of financial schemes and business models that can overcome investment barriers for the identified climate programs. To achieve this, West Java should optimize the use of public funding in order to boost private finance participation.