Energy transition initiatives have been focused mostly on carbon-intensive industries to manage emissions. However, there is significant potential in unused areas and spaces. One such area that has flown under the radar is the education sector.
This is something that GSPARX Sdn Bhd realised when expanding its reach across various sectors, and it decided to take advantage of its position as a solar investor and installer of rooftop solar solutions.
Established in 2018 as a wholly-owned subsidiary of Tenaga Nasional Bhd (TNB), GSPARX has since focused on solarising the residential, commercial and industrial sectors. Over the last few years, it expanded into the education sector, helping many local institutions of higher learning adopt a more sustainable way of energising their operations.
Schools and universities receiving government assistance or wholly under the government’s purview are eligible to receive quota allocation under the NEM Government Ministries and Entities (NEM GoMEn) programme, a subsection of the net energy metering (NEM) scheme to support the green initiatives of government entities.
The government introduced the NEM scheme to enable energy produced by solar photovoltaic (PV) installations to be consumed first and for any excess solar energy to be exported to TNB at the prevailing displaced cost.
Since the introduction of NEM in 2016 by the Sustainable Energy Development Authority (SEDA) Malaysia, the quota has increased from its initial offering of 500 MWac (Megawatt alternating current) to 1,600 MWac in 2024, further catering for the needs of residential, commercial and government entities that choose solar energy.
In the recent Budget 2025 announcement, the current NEM 3.0 programme has been extended to June 30, 2025, to continue to incentivise the rooftop solar market.
So far, about 40% of the 100 MWac under the 2024 NEM 3.0 quota allocation for NEM GoMEn is still available. With this in mind, GSPARX believes in extending its solar expertise to the education sector, which is usually under budget scrutiny, to enable institutions to be more cost-efficient in their operations.
Via the GSPARX zero capex (capital expenditure) business model, educational institutions do not have to provide the initial capital outlay for the rooftop solar installations.
“Under our Solar Power Purchase Agreement using Supply Agreement with Renewable Energy (SARE) Scheme, our customers forgo any upfront costs. GSPARX becomes the solar investor, covering maintenance and repairs throughout the contract period,” says GSPARX managing director Elmie Fairul Mashuri. “Customers only need to pay for solar energy generated and used at a lower tariff, thus resulting in savings from their electricity bill.”
So far, GSPARX has provided 24.36 MWp (Megawatt peak) to more than 20 public and private institutions of learning in Peninsular Malaysia. This is equivalent to more than 10.15 million tonnes of carbon dioxide (CO2) sequestered from forests the size of Terengganu and Pahang combined.
One of GSPARX’s first solar installations in the education sector was University College TATI (UC TATI) in Terengganu. Under the SARE arrangement inked in October 2019, the institution is expected to enjoy potential savings of RM6.24 million over 25 years from a solar installation with a capacity of 899kWp. This is equivalent to 814 tonnes of CO2 offset, equivalent to 13,460 tree seedlings grown for 10 years.
Since then, GSPARX has continued to expand its footprint in other educational institutions nationwide. In November 2021, it carried out one of its largest installations at the Universiti Tun Hussein Onn Malaysia (UTHM) campus in Batu Pahat, Johor. A total of 6.9MWp was installed, covering the rooftops, walkway and solar car park of 25 buildings.
The solar capacity has started to generate green energy with potential savings of RM43 million by offsetting 6,203 tonnes of CO2 annually, equivalent to 102,567 tree seedlings grown over 10 years.
In August 2022, GSPARX won a contract with Majlis Amanah Rakyat (MARA). Under Phase 1, it solarised six MARA educational facilities across Peninsular Malaysia in Kedah (Langkawi Island, Baling and Sungai Petani), Penang (Transkrian and Seberang Perai Utara) and Kelantan (Pengkalan Chepa).
The three-year project was completed 10 months ahead of schedule in September 2024. With its successful NEM GoMEn application, MARA is projected to see potential savings of RM19.62 million over 25 years with a solar capacity of about 1,424 kWp, equivalent to more than 1,188 tonnes of CO2 avoided per year.
Apart from the compelling potential savings of harnessing solar energy, administrators of these educational institutions are able to demonstrate their commitment to fulfilling their environmental, social and governance (ESG) goals.
For example, the Universiti Putra Malaysia (UPM) Strategic Plan 2021-2025 was established to emphasise sustainability elements in research and innovation, and to strengthen industry and community relations.
“After a thorough study of their energy demands and our ability to address the university’s high expectations from our partnership, GSPARX was successful in the bid to install the mega-scale rooftop solar PV project at its campus in Serdang, Selangor,” says Elmie.
The solar installation of 16.19 MWp in capacity at the Serdang campus comprises 12 locations with large solar car parks, rooftop solar and a unique floating solar solution on the Engineering Faculty lake.
Under the SARE structure, GSPARX funded the entire project with no upfront capital required from UPM, whose solar solution is projected to deliver potential electricity bill savings of up to RM114 million in 25 years.
“In fact, the university reported savings of more than RM3.6 million in a year from the UPM SURIA16 Solar Project as at December 2023. This unique floating solar and walkway at the Serdang campus was positioned as the first large-scale integrated hydroponic-aqua voltaic systems-cum-ecotourism in Malaysia,” Elmie says.
“This endeavour has further bolstered UPM’s standing as Malaysia’s most sustainable university as recognised by the UI-Green Metric and QS World University Rankings. Furthermore, the university has submitted an application to the Malaysia Book of Records for having the largest solar PV system in a university campus in the country.”
The collaborations that GSPARX has fostered with educational institutions are mutually beneficial. According to Elmie, participating universities are sending their students for internships at GSPARX for greater exposure in the solar PV industry.
“GSPARX conducts informative public talks and sharing sessions with students, highlighting the vast market potential and job opportunities in the solar industry,” he says.
In the name of innovation, GSPARX extended its strategic collaboration to UPM’s Solar for University’s Research and Investment Acceleration (SURIA) Task Force to analyse the effectiveness of the solar project from the financial, technical and research aspects.
On another front, GSPARX is working on the new solar battery technology called Battery Energy Storage System (BESS) in collaboration with UTHM, TNBR Sdn Bhd and TNB’s Strategic Ventures Department in an effort to enhance the existing green energy programme at the university.
“This research and development collaboration is still in its pilot phase, with the aim of commercialising the BESS solution in Malaysia at an affordable rate for public consumption,” says Elmie.