When we think of renewables, there are options of solar energy, wind power, hydroelectricity, biomass. Due to its geographical location, solar energy is the most viable option for Malaysia with its round-the-year summery weather.
With an untapped potential of 3.2 million landed houses, the potential for adoption is certainly great in Malaysia. Currently, the residential uptake is lower than the business ones. The main barrier to adoption is still the upfront cost, followed by low awareness of existing government initiatives, as residential solar uptake has been markedly lower than in businesses.
To address barrier of adoption by raising awareness and widening access to home owners through a rent-to-own scheme which makes solar affordable whilst allowing for up to 90% monthly bill savings. How? Instead of monthly grid electricity payments, users now can divert this expense to offset the solar setup’s cost, resulting in minimal to zero increases in monthly expenses, depending on their consumption.
With the climate change wreaking havoc on the earth, it affects every walk of life in the every country. For the foreseeable future, there will be increase household solar adoption. It is seen as endeavour taken towards carbon neutrality coupled with increased support from the government to spur the renewable energy industry.
To encourage the solar adoption by the small-medium enterprises (SMEs), Bank Negara Malaysia has allocated RM1 billion to assist SMEs in adopting sustainable and low carbon practices.
Policies such as New Energy Metering (NEM) 3.0, Smart Automation Grants (SAG), and Green Investment Tax (GITA) have been very helpful in allowing the clean energy industry in Malaysia to thrive.
The NEM allows electricity bill rebates with solar setups leading to attractive ROI offers. The scheme’s quota for businesses, NEM Net Offset Virtual Aggregation (NOVA), is said to have great response by high subscription rate.
The GITA and Capital Allowance (CA) are great motivators for business owners as they are eligible for these tax allowances of up to 48%.
While the SAG’s RM100 million allocation has hastened the rate of automation and digitisation, channelled to the manufacturing and services industry. It has helped adopters towards installing smart AIoT energy solutions which translate insights into energy saving.
A well-managed transition to a low-carbon economy is a concerted efforts of both the private and public sectors.