The solar industry stands at the forefront of the global transition toward a cleaner, more sustainable energy system, with continued technological advancements, supportive policies, and increased investment essential for realising its full potential in shaping a brighter future.
The Malaysian solar industry faces several key challenges in implementing solar as a renewable energy source in Malaysia. These include limitations in technology and access to the grid, hindering the pace of investment and innovation in the renewable energy sector.
To address this, initiatives such as granting third-party access (TPA) to the national electricity grid have been introduced under the Budget 2024, aiming to stimulate private sector involvement and drive advancements in renewable energy infrastructure.
Additionally, there is a need for enhanced public awareness and education regarding solar energy. The Malaysian government has taken steps in this direction, exemplified by initiatives like the installation of solar panels in government and commercial facilities in Putrajaya with a cumulative solar PV capacity of 3MW and potential capacity up to 20MW by 2030.
Verdant Solar CEO Zeth Lim (pic) spoke to BusinessToday exclusively on the challenges and the path to growth for the Malaysian Solar industry, hinging on solar adoption in 2024.
Lim said another significant challenge lies in the high upfront costs associated with solar adoption. To alleviate this burden, measures such as the development of a roof solar buyback program and the promotion of zero-capital expenditure subscription models for solar power systems have been introduced under Budget 2024. Furthermore, efforts to provide financing options through extended loan durations and easy payment plans via credit cards are underway.
Moreover, addressing insufficient incentives are crucial. The recent extension of the N.E.M 3.0 until December 2024 aims to incentivise more residential households and factories to invest in solar panels, thereby enhancing the return on investment and reducing the payback period for solar users. Through a combination of governmental initiatives and stakeholder collaborations, efforts are being made to overcome these challenges and accelerate the adoption of solar energy in Malaysia.
Reducing Challenges, Illuminating Growth
From Verdant Solar’s perspective, overcoming the challenges associated with integrating renewable energy sources into the grid and mitigating the impact of high solar panel prices are critical for Malaysia’s seamless integration and widespread adoption of solar energy.
To address these issues and bolster consumer confidence, Verdant Solar implements a multifaceted approach. Firstly, educational initiatives are paramount.
“We conduct workshops, seminars, and outreach programs to educate consumers, particularly those in the B40 group, about the benefits of solar energy and its potential to reduce electricity bills and carbon footprints. We also offer innovative solutions such as the Verdant home app, allowing customers to monitor their solar energy performance tailored to their specific needs and consumption patterns,” Lim said.
Additionally, we prioritise quality partnerships and cost-effective solutions by collaborating with top-tier solar panel providers, ensuring customers receive efficient and durable panels that offer a strong long-term investment with greater energy production and longevity.
Compliance and certification are also crucial aspects, with Verdant Solar ensuring all products and installations adhere to local standards and regulations by working closely with authorities like the Sustainable Energy Development Authority (SEDA) and Tenaga Nasional Berhad (TNB).
This commitment to compliance ensures the seamless integration of solar systems into the national grid without compromising stability. Furthermore, we focus on quality installation and maintenance by employing certified technicians to ensure peak efficiency and minimal downtime, thus enhancing consumer trust through consistent product performance and reliability.
Asked on Malaysia aiming to increase its installed solar capacity by 1,098 MW by 2025 and an additional 2,414 MW by 2035, addressing the challenges associated with integrating renewable sources becomes pivotal to ensure the successful implementation of Malaysia’s plans and the growth of the renewable energy sector. Are the prerequisites in place?
Lim said presently, the country has laid down crucial prerequisites for this endeavour. Firstly, a supportive policy framework, including initiatives like Net Energy Metering 3.0, the Malaysia Renewable Energy Roadmap, and incentives provided under the Green Technology Financing Scheme (GTFS), has been established, fostering an environment conducive to solar energy expansion. Regulatory bodies such as the Sustainable Energy Development Authority (SEDA), Tenaga National Berhad (TNB), and the Energy Commission (EC) have implemented measures to streamline project approvals and grid connections, essential for scaling up solar capacity.
On top of this, financial mechanisms like the net energy metering policy have been implemented to incentivise solar investments and ensure returns for both residential and commercial sectors.
However, despite these advancements, several areas require attention to fully achieve the aforementioned goals. There’s a pressing need for significant investment in energy storage solutions to mitigate the intermittency of solar power, particularly through advanced battery storage technologies, that can store excess energy generated during peak sunlight hours for use during periods of low sunlight or high demand.
Access to financing remains a challenge, especially for small and medium enterprises (SMEs) and residential consumers, highlighting the necessity for expanded financing options and reduced capital costs for solar projects to encourage widespread adoption. Additionally, enhancing public awareness and acceptance of solar energy’s benefits while dispelling myths about its costs and reliability is paramount, requiring intensified education and outreach efforts.
Streamlining permitting processes further can reduce project lead times and costs, facilitating smoother project execution. Moreover, as solar capacity expands, modernising the national grid to accommodate the intermittent nature of solar power is essential, necessitating investments in smart grid technologies and improved grid management practices. Increased investment in research and development (R&D) to enhance solar panel efficiency, reduce costs, and explore new applications is crucial for advancing Malaysia’s renewable energy agenda.
Policies Hold Water
Lim said the NETR provides comprehensive planning, outlining long-term visions and targets for renewable energy adoption, energy efficiency enhancements, and carbon emissions reduction. Supported by policies and regulatory mechanisms, these roadmaps encourage investment in renewable energy technologies and associated infrastructure, potentially creating new economic opportunities and jobs in green technology sectors such as solar and wind energy, energy storage, and smart grid technologies.
However, challenges persist in implementation, including technological and financial barriers associated with upfront investments and energy security concerns, particularly in nations heavily reliant on fossil fuels.
Cohesive policy frameworks adaptable to technological advancements are crucial, amidst potential resistance from stakeholders vested in existing energy paradigms.
Malaysia actively participates in this initiative through its Renewable Energy Roadmap (MyRER), which delineates targets for increasing the share of renewables, including solar and biomass, in its energy mix.
Additionally, initiatives like the Green Technology Master Plan (GTMP) leverage green technology to propel economic growth while implementing energy efficiency measures across sectors to curb energy consumption and emissions.
Reducing Obstacles
Verdant Solar presents a comprehensive proposition aimed at facilitating the seamless integration of solar energy solutions for Malaysian residents, embodying a holistic approach to surmounting the hurdles associated with renewable energy adoption. A
“At Verdant Solar, we focus on incentivising and raising awareness among consumers regarding government incentives, financial savings, and environmental benefits associated with solar energy. This concerted effort aims to dispel misconceptions and make solar energy a more appealing option for both homeowners and businesses.
“Recognising the burgeoning demand for skilled professionals in the solar industry, We are dedicated to expanding our workforce.
“Through training and recruitment initiatives, we aim to bolster their team of technicians, engineers, and customer service personnel, ensuring proficient installations and reliable service. We leverage international best practices to enhance the efficiency, reliability, and cost-effectiveness of our solar installations, staying abreast of industry innovations and global trends.”
Acknowledging the growing significance of energy storage and electric vehicles (EVs), the company is exploring the integration of battery systems and EV charger technology with solar installations, aligning with evolving consumer preferences and technological advancements.
A Right Direction
The historic COP28 agreement holds significant implications for global efforts to combat climate change and transition towards renewable energy sources.
Firstly, it showcases a remarkable display of global unity in confronting the shared threat of climate change, emphasising the collective commitment of nations worldwide.
Central to the agreement is the pledge to substantially reduce greenhouse gas emissions, a crucial step in limiting global warming to within the 1.5 degrees Celsius limit set by the Paris Agreement, thereby preventing the most severe impacts of climate change.
The agreement signals a concerted shift away from fossil fuel reliance towards renewable energy alternatives, particularly emphasising the pivotal role of solar energy in this transition.
Recognising the varying capacities of nations, the agreement also addresses the importance of providing financial assistance and technology transfer to support developing countries in their renewable energy transition efforts, ensuring inclusivity and equity in the global energy transition.
Moreover, the incorporation of robust enforcement mechanisms underscores the necessity of actionable measures to uphold the agreement’s provisions, reflecting a commitment to translating intentions into tangible outcomes. Overall, I would say the COP28 agreement stands as a testament to global determination in combating climate change and accelerating the transition towards a sustainable, renewable energy future.
Renewable Energy Adoption In Malaysia
Malaysia’s efforts in renewable energy adoption can be evaluated against global trends through several key dimensions: policy framework, investment, technology adoption, and challenges faced.
Globally, countries are rapidly shifting towards renewable energy sources like solar, wind, and hydro to address climate change, reduce carbon emissions, and ensure energy security. In the context of global trends in renewable energy adoption, Malaysia’s efforts align with several key dimensions, reflecting both progress and unique challenges.
Malaysia has implemented policies such as the Malaysia Renewable Energy Roadmap (MyRER) and incentives under the Green Technology Financing Scheme (GTFS) to support renewable energy growth, with a focus on solar, biomass, and hydro, as outlined in the National Energy Policy 2021-2040.
However, the scope and ambition of Malaysia’s targets and policy instruments may differ from global leaders, reflecting the country’s distinct economic and geographical context.
While Malaysia has seen notable investment in solar energy, particularly in Southeast Asia, there remains room for growth.
Additionally, though Malaysia shows promise in solar energy and bioenergy given its agricultural sector, the adoption of advanced technologies such as energy storage systems and smart grids is still in the early stages.
Verdant Solar has been dedicating consistent effort and investment towards enhancing public awareness about solar energy. Our initiatives aim to educate the community on the benefits and possibilities that solar energy offers, both from an environmental and economic perspective.
On the other hand, collaborations with educational institutions to integrate renewable energy topics into curricula contribute to fostering a deeper understanding from an early age.
Moreover, by innovating and enhancing accessibility to renewable energy solutions such as battery systems and solar-powered EV chargers, Verdant Solar directly showcases the feasibility and benefits of transitioning to renewable energy.
However, ignoring the challenges posed could have detrimental consequences for the industry. This may manifest in slowed adoption rates, reduced policy and investment support, constraints in the market for renewable energy technologies, and missed economic opportunities, ultimately impeding progress towards sustainable energy goals and hindering potential socio-economic benefits.
Addressing these challenges is imperative to drive the widespread adoption of renewable energy solutions and realise their full potential in mitigating climate change and fostering economic growth.
Verdant Solar’s Mission
Verdant Solar’s goals for 2024 encompass a multifaceted approach aimed at advancing renewable energy adoption in Malaysia. We aim to significantly expand residential solar growth, with plans to double current momentum, demonstrating a strong commitment to providing sustainable energy solutions for homeowners. Additionally, we intend to pioneer advancements in data efficiency through the development of its own monitoring app, empowering customers to optimise their energy usage effectively.
The company plans to extend its reach into corporate solar solutions, integrating solar panels into businesses to promote sustainable development and reduce carbon footprints across industries. We are investing in cutting-edge battery systems tailored for solar applications to enhance system reliability and address intermittency challenges associated with renewable energy.
Verdant Solar’s 2024 growth plan covers an integrated approach, spanning the residential, corporate, and technological realms. Through this multifaceted strategy, the company seeks to solidify its leadership position in the renewable energy sector, driving innovation, sustainability, and positive environmental impact.
The ongoing advancements in solar photovoltaic (PV) technology have significantly enhanced efficiency while reducing costs. Innovations such as bifacial panels and solar tracking technology amplify energy production capacities, with further potential seen in emerging technologies like perovskite solar cells.
Secondly, the integration of solar energy with advanced storage solutions like lithium-ion batteries addresses the intermittency challenge, ensuring consistent energy delivery even during periods of low sunlight. This integration is pivotal for increasing solar energy’s penetration in the overall energy mix.
Moreover, solar energy plays a vital role in the decentralisation of energy systems, empowering consumers to generate their own electricity through rooftop panels and community projects, thereby enhancing energy security and resilience.
From an environmental and social standpoint, solar energy significantly reduces carbon emissions and pollution, aligning with global climate efforts while fostering economic growth and job creation.
Ensuring accessibility and affordability of solar energy, particularly for underserved communities and developing nations, remains crucial, necessitating innovative financing models and international cooperation.
