Evaluation of Green Investment in Solar Photovoltaic Power Plants Using Analytical Hierarchy Process in Archipelago

This study evaluates green investment in solar photovoltaic (PV) power plants in Indonesia’s archipelago using the Analytical Hierarchy Process (AHP). Despite the national renewable energy (RE) target of 23% by 2025, the development of wind and solar projects remains constrained by high investment risks, inadequate infrastructure, and regulatory uncertainties. As an archipelagic country with abundant solar resources, Indonesia faces the dual challenge of mobilizing sustainable financing while reducing reliance on fossil-fuel-based diesel plants. The research aims to identify and prioritize determinants influencing green investment decision-making for solar PV in archipelago. Data were gathered through structured questionnaires and interviews with 75 respondents, of which 35 responses met the AHP consistency ratio requirement. The four-level hierarchical model reveals that policy factors (0.4825) exert the strongest influence, followed by economic (0.3120) and technical (0.2055) factors. At the sub-criteria level, profitability (0.7724), renewables obligation (0.6055), and technological maturity (0.6020) rank highest, highlighting the role of financial viability, regulatory enforcement, and proven technology in shaping investment attractiveness. The findings show policymakers favor short-term fiscal support, whereas researchers and practitioners stress long-term regulatory certainty and financing accessibility. The study’s novelty lies in integrating multi-stakeholder perspectives into a structured model, offering quantitative insights for green finance strategies.