Solarvest hopes for more solar incentives in Budget 2020
KUALA LUMPUR : Solarvest Holdings Bhd’s (Solarvest) wishlist for Malaysia’s Budget 2020 is that more will be done to enhance the uptake of solar photo voltaic (PV) installations in residential homes.
This comes as the government has set a target of achieving 20 per cent renewable energy capacity mix by 2025, encouraging the use of renewable energy in Malaysia by introducing incentives such as the Green Technology Financing Scheme (GTFS), Green Investment Tax Allowance, and Green Income Tax Exemption.
These initiatives have led to strong positive growth in the adoption of solar photovoltaic systems, especially amongst the commercial and industrial segments.
According to Solarvest group chief executive officer Davis Chong, there are many benefits for home owners to install solar PV panels on rooftops which include lower electricity bills, ability to generate one’s own clean energy and reduced carbon footprint.
“We would like to suggest the introduction of several incentives targeted at the residential segment,” he said in a statement.
Among his suggestions include individual tax rebates of up to RM10,000 for those who install solar PV panels on house rooftops. This will lower the initial up-front cost and enhance the return-on-investment (ROI) period for home owners, he said.
“We also call on the government to expand the eligibility of Green Technology Financing Scheme (GTFS) 2.0 which is only currently available to companies, to also include residential owners,” he added.
“Under GTFS 2.0, applicants are entitled to a two per cent rebate per annum on interest taken on bank loans for the installation of solar PV panels. For home owners applying under GTFS 2.0, the minimum processing fee should be lowered to RM1,000 from the current RM8,000 for companies.
“We believe that when home owners also actively make the switch to renewable energy, this will accelerate the government’s target of achieving 20 per cent renewable energy capacity mix by 2025.”
We would like to suggest the introduction of several incentives targeted at the residential segment.
Davis Chong