Sumba Island is a remote region with great potential for renewable energy sources, as the Iconic Island of Renewable Energy designated through the Minister of Energy and Mineral Resources Decree No. 3051 K / 30 / MEM / 2015 is targeted to reach 100% of renewable energy usage with 95% of electrification by 2025. To reach this target, the participation of the community as the subject of every renewable energy project is essential. This paper aims to identify the lessons learned to enhance the community’s capacity in implementing the rural community-based renewable energy business model in Indonesia, with the case of the renewable energy business in Luku Wingir and Waimbidi Village - East Sumba. The result indicates that the Rural Community-based Renewable Energy Business Model in the case study need to be developed based on the fundamental strategies of building community capacity: (1) leadership development of the village community in East Sumba, (2) business organizational development in managing the renewable energy, (3) developing a significant role for the community in organizing renewable energy, and (4) adapting collaborative relations among multiple stakeholders in East Sumba.