The growth of the nation’s renewable energy, especially the solar energy, is dependent upon the government’s continued policy support, new tax incentives and expansion of energy conservation programmes.
“We hope the government to continue its support for green technology investments and introduce more tax incentives to accelerate the adoption of solar energy across the nation. Our desired outlook reflects the strategic opportunities available for both public and private sectors to collaborate in advancing Malaysia’s clean energy goals and achieving a low-carbon (or net zero) future,” said Davis Chong Chun Shiong, Executive Director and Group Chief Executive Officer of Solarvest Holdings Berhad (Solarvest) and President of the Malaysian Photovoltaic Industry Association (MPIA).
As a leader in Malaysia’s renewable energy industry, Solarvest believes that strategic investment and incentives in the upcoming 2025 National Budget will play a pivotal role in accelerating Malaysia’s energy transition towards sustainability.
Solarvest has tabled several recommendations aimed at enhancing the growth of Malaysia’s solar energy infrastructure, strengthening tax incentives for green technology investment, and accelerating the adoption of clean energy within the country.
First, the elimination of capacity limits that restrict the expansion of Net Energy Metering (NEM) and Self-consumption (SELCO) Programmes. The government is urged to remove capacity caps for NEM Rakyat, NEM Gomen and NEM Nova, and allow transmission interconnection for SELCOs.
Second, the implementation of tax exemption and tax reduction for the Solar Photovoltaic (PV) Supply Chain and solar project development. The authority should continue and expand Sale and Service Tax (SST) exemption and reduce import and excise duties for solar PV modules, inverters, charge controllers and Battery Energy Storage Systems (BESS) through 2029. These incentives should be coupled by the reinstatement of the Green Technology Financing Scheme (GTFS) to support solar energy projects and accessibility.
Next, the introduction of tax relief for the installation of residential solar PV modules up to RM50,000 with annual relief up to RM10,000 over a period of five years. Interest-free loans should be introduced for the B40 group and interest-subsidised loans for the M40 group within the NEM Rakyat Programme. Residential property developers incorporating solar energy solutions in their housing projects should receive tax incentives in the form of Green Investment Tax Allowance or Green Income Tax Exemption.
Then, the advancement of distribution grid where RM50 million is to be pledged to fund the Smart Grid Technologies and another RM30 million to enhance the grid infrastructure, EV charging network and BESS support.
Lastly, the distribution of monetary grant in support of self-sufficiency where RM50 million will be utilised toward training, as well as Research and Development (R&D) investment. Further, agrivoltaic and aquavoltaic programmes should be implemented to optimise land use in order to boost the production of renewable energy and food crops. The installation (ground-mounted and floating) of solar PV modules should involve local companies with majority Malaysian equity.
