Malaysia is strategically located in a region abundant with sunlight, making it highly favourable for solar energy harnessing. There are also four million landed homes with only about 30,000 have solar panels installed, indicating a vast untapped market for solar adoption.
Speaking to BusinessToday exclusively on the practicality of solar energy adoption in Malaysia, Verdant Solar Chief Executive Officer Zeth Lim said Government initiatives, such as the NEM policy and tax incentives offered under MIDA, significantly promote the transition to solar energy.
On the financial side, banks play a crucial role by offering solar loans and extended payment schemes, including up to 60 months of zero-interest plans on credit cards. This financial support, combined with the upcoming electricity tariff hike of at least 25% for households consuming 1500kWh by July 2023, positions solar energy as a more attractive and viable option for Malaysians.
In relation for the National Energy Transformation Roadmap (NETR) 2023, Lim said the initial roadmap, launched on July 27, 2023, has ingeniously reshaped the way Malaysians can approach sustainable energy. By introducing a mechanism that enables households to lease out their rooftops for solar panel installations, homeowners can monetarily benefit without making significant upfront investments. This not only provides an economic incentive for homeowners but also boosts businesses in the solar leasing and installation sector.
Furthermore, such an initiative lays the groundwork for future developments in Malaysia. As more rooftops get outfitted with solar panels, it sets a precedent for developers and architects to design “solar-ready” homes from the get-go. Such a trend could significantly influence urban planning and construction, emphasizing sustainability and environmental consciousness in their core design principles. The ripple effect of this could be tremendous, pushing Malaysia further along the path of eco-friendliness and energy self-sufficiency.
Solar – A slower take up rate
Lim said the primary reason residents in Malaysia hesitate to install solar panels is the upfront cost. Ranging from RM 16k to 50k, this initial investment is a significant deterrent for many. However, financial solutions like solar loans extending up to 10 years and easy payment schemes for up to 60 months are available to mitigate this concern.
Moreover, misinformation plays a role, with some residents under the impression that solar installations cost upwards of RM100k. Additionally, there are limitations on the maximum system size that can be installed. This constraint discourages households with high energy bills (exceeding RM 2000) from transitioning to solar, as they aim to maximize savings from their investment.
Generally, the return on investment (ROI) for solar panels ranges from 4 to 7 years.
The Challenge in Malaysia
In Malaysia, the advancement of solar PV as a primary renewable energy source faces a series of hurdles. One of the most significant barriers is the policy framework.
Lim said the government, while implementing initiatives such as the NEM Rakyat, hasn’t projected a clear long-term vision for the solar industry. This short-term approach creates uncertainty for industry players who are unclear about the sector’s direction once the current policy ends this year.
Moreover, the existing policy sets a cap on the size of solar systems that can be installed, diminishing its appeal, especially to homeowners with larger energy requirements.
Additionally, financing remains a roadblock to greater solar adoption among Malaysian residents. Current financing options, like the easy payment scheme, cater primarily to individuals with high credit card limits, excluding a sizable segment of the population.
This limited access to financing options hinders the spread and affordability of solar installations for many households, slowing down overall adoption rates.
Asked on his view on Malaysia’s green energy initiatives and policies moving forward, Lim said Malaysia’s green energy initiatives are taking a promising direction by emphasising rooftop solar installations. Rooftops represent an underutilised asset, offering ample space for harnessing solar energy without necessitating additional land acquisition. Leveraging these spaces can drastically accelerate the nation’s transition to renewable energy while maximizing urban resources.
Moreover, the move to incentivise battery energy storage systems (BESS) highlights forward-thinking policy-making.
BESS can play a pivotal role in grid stabilisation, ensuring consistent energy supply even during periods of low solar energy generation.
By introducing incentives like personal tax breaks for BESS installation, Malaysia can encourage broader adoption and enhance the resilience and reliability of its national grid.
Accessibility
Verdant Solar is committed to expanding the reach and understanding of solar energy in diverse communities.
“To achieve this, we have embarked on a mission of educational outreach through community sharing sessions. By targeting both corporate environments and residential communities, we’re ensuring a broader demographic gains essential knowledge about the intricacies and advantages of solar panels,” said Lim.
In addition to educational initiatives, we actively participate in exhibitions, amplifying their visibility and engagement with potential clients. This proactive approach aids in demystifying solar energy and showcasing its tangible benefits to the masses.
A cornerstone of Verdant Solar’s strategy is exceptional customer service. We believe in transforming our satisfied clients into brand ambassadors, and fostering organic growth through word-of-mouth recommendations. Additionally, by leveraging the economy of scale, Verdant Solar can offer more competitive pricing, making solar installations economically viable for a wider segment of the population.
Future Plans
Verdant Solar envisions evolving into the epitome of a customer and employee-centric enterprise in the imminent future.
“We believe that by putting our customers and staff at the forefront of our operations, we can better tailor our offerings and foster a harmonious, progressive work environment. This emphasis on human-centric values not only sets us apart but also positions us as a trusted brand in the eyes of our stakeholders.”
Another ambitious target on our horizon is to achieve net-zero status. By committing to this goal, Verdant Solar underscores our dedication to sustainable practices and our responsibility to the environment. Attaining a net-zero footprint serves as a testament to our leadership in driving sustainable changes in the energy sector.
Expanding beyond solar solutions, we aspire to reposition ourselves as a comprehensive cleantech company. Our aim is to become a household name synonymous with a wide array of clean technology solutions, making renewable energy and sustainable practices accessible and customary for homes across the region.
Supercharge your business with a banking app that’s simpler, smarter & more secure at your fingertips with Maybank2u Biz App. Download it on App Store & Play Store today. Learn More
