Going Green: The Business Case for Switching to Solar Energy in Timor-Leste

Timor-Leste offers a compelling opportunity to invest in solar energy!

Timor-Leste has rapidly expanded electricity access to more than 83 per cent of the population but the country has yet to achieve energy security.1 Consumer costs, even with government subsidies, remain high and outages are common. In addition, most of Timor-Leste’s electricity is generated through costly and polluting diesel generators.

Australia’s Market Development Facility (MDF) and ITP Renewables conducted an assessment of the potential market for roof-top solar energy systems in Timor-Leste. This involved detailed consultations with a variety of organisations, particularly with businesses to understand their awareness of solar energy and their intentions to shift to solar energy.

The results from this market assessment indicate that solar energy could be an excellent substitute or complement to Timor-Leste’s electrical grid. High electricity costs and readily available solar radiation mean that the average payback period for a rooftop photovoltaic (PV) solar energy system in Timor-Leste is only 1.5 to 3 years instead of the global average of 6-10 years. Transitioning to solar can also help the country meet environmental commitments.

Globally, businesses are switching to solar energy to reduce expenses and respond to changing market and regulatory requirements. The return on investment for solar is improving because conventional energy costs are rising, and solar energy costs are falling – by 89 per cent between 2010 and 2020.