Abstract. The limited resources of fossil energy have an impact on the supply of energy and also exacerbated by the inability of the State Electricity Company (Perusahaan Listrik Negara, PLN) to increase the number of power plants to provide services to the rural areas, providing Solar Power Plant (SPP) is highly expected. Unfortunately, solar home systems project in a hamlet is not sustainable. The purpose of this study is to provide an alternative mechanism for the implementation and institutional development models of SPP, as a strategic development and implementation of sustainable SPP, so it is not just for lighting but can increase business productivity of rural communities. This research is a qualitative descriptive study conducted to obtain the facts from existing symptoms and seek factual explanations and explanatory. Data obtained by using survey techniques, in-depth observation and Focus Group Discussion to provide answers of the problems faced to explain the phenomenon. SWOT technique was used to determine the development strategy in achieving the proper of SPP institutional. Overall, this research provides some important insights for Yogyakarta, Indonesia to highlight possible steps for policy makers to develop a sustainable renewable energy project.