Increased adoption of alternative energy sources
KUALA LUMPUR: Malaysia is blessed with abundant energy sources such as solar, hydropower and hydrocarbons such as natural gas.
As the world moves towards net zero carbon emission, the country has now made progress to achieve the commitment as early as 2050 by diversifying into green energy while also introducing several policies such as the National Energy Transition Roadmap as a guideline towards that commitment.
The government has also launched the Sustainability Achieved Via Energy Efficiency (SAVE) 4.0 programme to boost the purchase of energy-efficient electrical appliances among Malaysians.
Currently, Malaysia’s energy sector is primarily reliant on fossil fuels, but there is a growing focus on renewable energy sources like hydropower and solar energy, which have contributed to about 5.0 per cent and 6.0 per cent of the country’s energy consumption in the past five years.
The government is targeting a 31 per cent share of the total installed capacity of sustainable energy by 2025, up from the current 23 per cent.
Under Budget 2024, Prime Minister Datuk Seri Anwar Ibrahim also announced the extension of the net energy metering (NEM) programme until Dec 31, 2024, to promote solar panel adoption.
The government is also working on a programme for buying back solar energy from rooftop installations with minimal costs to the system. At the same time, the government encourages companies to offer a “Zero Capital Cost” subscription model, similar to what clean energy firm Gentari is offering for residential homes.
Putrajaya also will lead the way as a green city model for Malaysia. Solar panels will be added to government buildings in partnerships with Tenaga Nasional Bhd (TNB) and Gentari. The government will also use electric vehicles for official purposes.
Solarvest Holdings Bhd executive director and group chief executive officer Davis Chong has observed a substantial increase in residential solar panels in recent years, driven by a combination of supportive government policies, advancements in solar technology, and a growing commitment to sustainable energy practices.
He noted that the adoption of solar energy is massive in major cities like the Klang Valley, Johor and Penang as homeowners from these urban areas have demonstrated a heightened awareness of the economic and environmental benefits of solar energy systems.
In the northern region, where sunlight hours are more favourable, there is a correlating uptick in solar energy projects. Johor, meanwhile, is also witnessing a significant adoption in solar energy, with its expanding economy and accelerating development coupled with ample land and rooftop resources, said Chong.
“Additionally, we are seeing a consistent increase in interest from states like Kedah, Melaka, Perak and Negeri Sembilan, showcasing the nationwide appeal of solar energy,” he told Bernama.
Looking ahead, Solarvest is anticipating another cycle of heightened interest and eagerly awaiting the new round of quota allocations for NEM.