Guide to Importing Solar Panels from China: Key Considerations

Driven by the government's renewable energy program, many companies are importing solar panels from China to meet their energy needs. The Ministry of Energy and Mineral Resources aims for Indonesia to reach a 23% renewable energy mix by 2025.

As of August 2024, Indonesia's installed solar panel capacity is 717.71 MW and continues to grow. Projects such as the 145 MW Cirata Solar Power Plant in Purwakarta, West Java, demonstrate the government's sustained commitment to green energy infrastructure since 2023.

Why Does Importing Solar Panels from China Dominate?

Solar panels from China wholesale are preferred for three main competitive advantages:

• Cost Efficiency: Mass production in China results in lower prices, typically 30 to 40 percent lower, compared to European manufacturers.
• Global Production Capacity: China accounts for 80 percent of the global solar panel market.
• Advanced Technology: Ongoing innovation has increased photovoltaic cell efficiency to 22 to 24 percent.

Growing Demand for Renewable Energy

Indonesia's commercial, industrial, and residential sectors are rapidly adopting solar energy, supported by a strong potential for solar power plants. According to E-Journal from Diponegoro University, the average daily solar radiation is high, ranging from 4.5 to 5.5 kWh per square meter, due to Indonesia's equatorial location.

With strong potential and government support, imports of Chinese solar panels have increased significantly in the past three years. Listrik Indonesia reports that China now supplies 80 to 90 percent of the global solar panel imports, driven by competitive pricing and a wide range of products.

Increasing Government Support for Renewable Energy

The government's target of a 3.6 GW renewable energy mix by 2026 has attracted significant private investment. Supportive policies to encourage renewable energy adoption include:

• Subsidies and financing schemes for solar power plant installations
• Net Metering regulations for rooftop solar systems
• Streamlined permitting for renewable energy projects
• Tax incentives for clean energy investors

Regulations and Legal Requirements for Solar Panel Imports

HS Code for Solar Panels

Customs classify solar panels under HS Code 8541.40.90 or 85414022. Using the correct code ensures:

• Accurate calculation of import duties and taxes
• Access to 0% preferential tariffs under the ASEAN-China FTA
• Smooth customs clearance process

Key Documents Prepared by the Customer

Importers must prepare complete documentation for each shipment:

• PIB (Pemberitahuan Impor Barang): This document must be submitted via the Indonesia National Single Window (INSW) to report to the Directorate General of Customs and Excise.
• Commercial Invoice: This invoice lists the CIF/FOB transaction value, detailed product specifications, payment terms, and complete seller-buyer information.
• Packing List: This list details the package contents, including panel quantity, dimensions, gross and net weight, and serial numbers for verification.
• Certificate of Origin (COO): Form E for ACFTA confirms Chinese manufacture and is required to claim the 0% preferential tariff.

Special Requirements: SNI Certification

As stipulated by the National Standardization Agency, as quoted in the Ministry of Trade's Lamansitu, since January 7, 2021, silicon crystal solar panel products must meet quality standards and be certified by SNI IEC 61215-1:2016, SNI IEC 61215-1-1:2016, and SNI IEC 61215-2:2016.

Certification Process:

• Trademark registration in Indonesia
• Sample testing at a KAN-accredited laboratory
• Manufacturer quality management system audit
• Certificate issuance (valid for 3-5 years)
• Periodic surveillance audits

Ministry of Energy and Mineral Resources Permit

Large-capacity or grid-connected power plant projects require an IUPTL (Electricity Supply Business Permit) and technical approval from the Ministry of Energy and Mineral Resources.

Product Quality Standards

Solar panels must meet IEC/TÜV international standards for energy conversion efficiency, weather resistance, electrical safety, and mechanical durability.

Importing Solar Panels from China: Complete Details

Product Prices and Wholesale Purchasing

Market Price Range (2024-2025):

Note: Large wholesale orders exceeding 500 kW qualify for a 15-30% discount. Leading suppliers such as Trina Solar, JA Solar, and Longi Solar offer a 25-year warranty and comprehensive after-sales support.

Import Duty and Import Tax

Importing solar panels from China cost simulation for CIF Value of USD 50,000:

Note: Without ACFTA, the standard tariff is 5 percent, resulting in a total tax of 18.5 percent. The Form E Certificate of Origin saves $2,500 on a $50,000 shipment.

VAT (Value Added Tax)

VAT of 11% is calculated from the Import Value (CIF + Import Duty) using the KMK (Minister of Finance Exchange Rate) applicable on the date of PIB submission.

Income Tax Article 22 (Import Income Tax)

• Importers with API (Importer Identification Number): 2.5%
• Importers without API: 7.5-10%
• Calculation basis: Import Value (CIF + Import Duty)

Freight and Handling Costs

Comparison of Shipping Methods:

Handling Costs in Indonesia:

• Port loading and unloading: IDR 500,000-1,500,000
• Container handling: USD 100-300
• Storage demurrage (after 3-5 days free time): IDR 100,000-300,000/day
• Physical inspection (if requested): IDR 500,000-2,000,000
• Marine cargo insurance: 0.3-0.5% of CIF value

Total Lead Time: 45-70 days (production 15-30 days + shipping 15-25 days + clearance 3-7 days + delivery 2-5 days)

Challenges in Importing Solar Panels

Quality Control Issues

Common Risks: 

Efficiency not meeting specifications, hidden microcracks, counterfeit certificates, and premature degradation.

Effective Solutions:

• Factory Audit: Verify ISO 9001, production capacity, and QC process
• Sample Testing: Flash test for efficiency, EL imaging for defect detection
• Third-Party Inspection: Use SGS or Bureau Veritas for pre-shipment inspection

Customs Delays and Regulatory Changes

Updates to SNI regulations, tariff changes, and TKDN requirements necessitate continuous monitoring through official portals: beacukai.go.id, esdm.go.id, and bsn.go.id.

Tips to Avoid Delays:

• Pre-clearance PIB before vessel arrival
• Consult a customs broker for complete documentation.
• Prepare additional supporting documents.

Currency Fluctuations and Shipping Costs

The volatility of the CNY-IDR exchange rate and freight rate spikes of up to 200% during peak season significantly impact total landed costs.

Mitigation Strategies:

• Currency Hedging: Forward contracts to lock exchange rates
• Advance Booking: Freight contracts 2-3 months in advance
• Supplier Price Lock: Long-term agreements with fixed pricing

Efficiency Strategies and Best Practices

Partner with an Official Forwarder

Uniair Cargo, as Indonesia's official forwarder, offers:

• Expertise in the latest import regulations
• A global network for competitive freight rates
• End-to-end service from factory to warehouse
• Verification of customer-prepared documents for compliance

Maximize ACFTA and Supplier Network

Certificate of Origin Form E provides a 0% import duty rate, resulting in a 5% savings on the CIF value. Choose verified suppliers with a minimum 5-year track record, SGS/TÜV audit, and trade assurance protection.

Logistics Optimization

Container Utilization:

• 20ft container: 20-22 ton capacity
• 40ft HC: 26-28 ton capacity (optimal for large volumes)

Project Planning:

• Calculate the total lead time of 45-70 days.
• Safety stock of 10-15% to avoid stockouts
• Import during Q1-Q2 for lower freight rates
• Clear goods within the free time to avoid demurrage

Conclusion

Importing solar panels from China presents significant opportunities for Indonesia's renewable energy projects, provided a comprehensive understanding of regulations (HS Code, SNI, ESDM permits), cost structures (ACFTA 0%, total tax 13.5%), and risk mitigation strategies are in place. Indonesia, with its considerable potential in this area, creates the perfect momentum for procurement professionals to build a strong supply chain.

Entrust your solar panel imports to Uniair Cargo, Indonesia's official forwarder with expertise in renewable energy logistics. We handle documentation, customs clearance, and delivery, ensuring full compliance and cost efficiency throughout the process. Join hundreds of successful procurement professionals. Want a free consultation? Contact us now!

Baca Juga : How Can Customs Clearance Be Managed For Natural Resource Exports (CPO, Coffee, Rubber) ?

References:

• Modul Fotovoltaik Silikon Kristalin
• SNI IEC 61215-1-1:2016
• Listrik Indonesia - Impor Panel Surya China Bikin Produk Lokal Gigit Jari
• Ejournal Undip - Economic Feasibility Study of Rooftop Solar Power Plant 32 kWp in PT KPJB Office Building, PLTU Tanjung Jati B, Kabupaten Jepara
• Kementerian ESDM - Pemerintah Kejar Tingkatkan Bauran EBT

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