For Budget 2023, buySolar would advocate for the Government to incentivise the adoption of residential solar, by increasing the residential solar quota allocation in 2023 to encourage Renewable Energy adoption in the residential sector. Of the 1200MW quota for RE, the Government allocated only 100MW (less than 10%) for the NEM Rakyat Programme starting from 1 February 2021 with a 10-year contract for successful applicants.
The programme is open until the quota is full or until 31 December 2023, and to date, the quota applications have reached 50%. According to our estimates, there are 3.2 million residential roofs in Malaysia that are suitable for solar PV solutions; and increasing the quota beyond end-2023 would help optimise it.
It would be ideal if the Government introduced tax incentives for residential solar, similar to the existing tax relief for the consumer staples industry, in Budget 2023 to encourage clean energy adoption among households.
They are confident that some people are aware of the benefits of solar power, but are hampered by the high cost. They are also discussing with the insurance providers on how to boost adoption of clean energy by residences, and believe that a tax relief would help increase the rate of residential solar adoption.