Indonesia has tremendous source of renewable energy, unfortunately they do not necessarily consider economically viable to be developed because some of the renewable resources maybe located in areas with very low electricity demand. This paper is using case study of a company named PT. SunPower Indonesia (SPI), one of Indonesian Independent Power Producer (IPP) with a plan to develop a Twenty Mega Watt (20 MW) Photovoltaic Power Plant (PV Power Plant) in Eastern Area of Indonesia. This paper is to explore the practice of Capital Budgeting Technique theory using elements such as: Payback Period, Discounted Payback Period, Return on Investment (ROI), Net Present Value (NPV), NPV Index, Internal Rate of Return (IRR) and Sensitivity to assist the company in making decision whether the project is feasible (or not) to execute. From the calculation, the finding shows that Indonesia is still a promising market for renewable energy but considering the monopolistic nature of the market, companies should be creative in differentiate their service in order to win the market and using the Capital Budgeting Technique, author is able to calculate that with the estimated investment of US$ 17 Million and the tariff set in US$ 0.70/Kwh, the project can generate a positive income to the company. Detail results with different scenario of technology were discussed and presented in conclusion. Keywords: Capital Budgeting; Decision making; Net present value, internal rate of returns, project feasibility, Solar, PV.