Malaysia is making significant strides toward greener and more sustainable energy practices. With the unveiling of the National Energy Transition Roadmap (NETR) in August 2023, the country is committed to reducing its reliance on fossil fuels and embracing renewable energy (RE) sources like solar power. This article explores Malaysia’s energy transition, the benefits of solar energy, and how individuals and businesses can contribute to a cleaner, more sustainable future.
Malaysia’s Energy Transition: A Green Revolution
Malaysia’s energy landscape is transforming. The NETR is a strategic blueprint focused on key energy transition levers, including:
- Energy efficiency
- Renewable energy (RE)
- Hydrogen and bioenergy
- Green mobility
- Carbon capture, utilisation, and storage (CCUS)
This initiative aligns with global commitments such as the Paris Agreement and the United Nations Sustainable Development Goals. Additionally, the 12th Malaysia Plan outlines steps to achieve net-zero emissions by 2050, with interim targets of reducing greenhouse gas (GHG) emissions by 45% by 2025 and 60% by 2035.
Currently, Malaysia’s energy supply is dominated by fossil fuels:
- Natural gas: 42.4%
- Crude oil and petroleum products: 27.3%
- Coal: 26.4%
- Renewables (hydropower, solar, bioenergy): Just 3.9%
Fossil fuels contributed to 33% of Malaysia’s GHG emissions in 2019, highlighting the urgent need for a shift toward cleaner energy sources.
The NETR’s Vision for a Greener Future
The NETR’s Responsible Transition (RT) Pathway 2050 aims to:
- Reduce fossil fuel reliance from 96% in 2023 to 77% by 2050.
- Increase the share of renewables in the total primary energy supply to 23% by 2050.
To achieve these goals, the government plans to:
- Expand renewable energy development, targeting 59GW or 70% renewable capacity by 2050.
- Encourage investment across the RE value chain.
- Promote solar system installations in residential and commercial buildings.
- Facilitate cross-border RE trade.
Investing in Renewable Energy: Opportunities and Incentives
Malaysia is already a global hub for photovoltaic (PV) component manufacturing, with six of the world’s top 10 solar PV companies operating in the country. The government’s commitment to RE is further demonstrated by the 2024 budget, which allocated:
- RM2 billion to the NETR.
- RM200 million as a startup fund for the New Industrial Master Plan 2030.
Financial institutions are also stepping up, offering RM200 billion in financing to support industries transitioning to a low-carbon economy. Key incentives include:
- Green Technology Fund Scheme: A 2% interest subsidy and 60% government guarantee on approved loans.
- Green Investment Tax Allowance and Green Income Tax Exemption: Enhanced incentives for companies adopting green technologies.
For homeowners, the Solar for Rakyat Incentive Scheme offers rebates of up to RM1,000 per kilowatt (capped at RM4,000 per person) for those participating in the Net Energy Metering (NEM) programme.
Advantages of Solar Energy in Malaysia
Cost Savings
Solar energy is now the cheapest source of electricity in history, according to the International Energy Agency’s World Energy Outlook 2020. Homeowners can save up to 90% on electricity bills by switching to solar power.
Long-Term Investment
Solar panels have a lifespan of 25 to 30 years, often backed by long-term warranties. While the initial investment ranges from RM16,000 to RM46,000 for homeowners, the return on investment (ROI) typically takes 6 to 10 years.
Environmental Benefits
Solar energy reduces dependence on fossil fuels, lowers GHG emissions, and contributes to climate change mitigation and energy security.
Government Support
The NEM 3.0 programme, extended until December 2024, offers additional quotas under three categories:
- NEM Rakyat (for individuals)
- NEM GoMen (for government ministries and entities)
- NOVA (for commercial and industrial users)
Challenges and Considerations
While solar energy offers numerous benefits, consumers must be cautious when choosing solar panel providers. Key considerations include:
- Avoiding low-grade or refurbished solar panels with shorter lifespans.
- Ensuring the use of high-quality electrical cables that can withstand prolonged exposure to UV rays.
- Selecting accredited and reputable providers to guarantee system efficiency and durability.
Why Solar Energy is Ideal for Malaysia
Malaysia’s tropical climate and abundant sunlight make it an ideal location for solar energy adoption. With high irradiance levels throughout the year, solar panels can operate at peak efficiency, providing consistent energy output.
Conclusion: A Brighter Future with Solar Energy
As Malaysia transitions to a low-carbon economy, solar energy will play a pivotal role in shaping the nation’s energy mix. With government incentives, technological advancements, and growing awareness, solar power is not only an environmentally friendly choice but also a financially sound investment.
By adopting solar energy, Malaysians can reduce their electricity bills, contribute to environmental sustainability, and support the country’s ambitious renewable energy targets. The future is bright—and it’s powered by the sun.
