For more than a decade, the Malaysian government has been pushing commercial and residential properties to adopt renewable energy (RE) options such as solar power. The Sustainable Energy Development Authority (SEDA) Malaysia was also set up in 2011 to help facilitate this mission. Today, while interest has picked up among commercial lots, many Malaysians still aren’t adopting it at home.

GSPARX managing director Elmie Fairul Mashuri observes that the biggest hurdle to getting Malaysians to install solar power in their homes is multifaceted, the most glaring issue being that many may not fully understand the benefits of solar energy.

There are also misconceptions about its effectiveness, reliability and affordability, especially since the initial investment required for installing solar panels and associated equipment can be a significant barrier for many households.

Elmie says that while GSPARX, being a wholly-owned subsidiary of Tenaga Nasional Bhd, is at the forefront of the RE industry, it still faces challenges in educating customers on the advantages of solar power, including cost savings, environmental benefits and energy consumption efficiency.

“Regardless of the challenges faced by individuals, we are confident in our abilities to innovate and adapt our strategies in our efforts to drive the adoption of solar energy in Malaysia. We are determined to encourage more people to tap on the sustainable energy opportunity by making solar more accessible and affordable for customers to embrace a smarter and greener lifestyle through financing options, incentives and tiered packages,” says Elmie.

The Imbalance Cost Pass-Through (ICPT) mechanism, which allows fuel costs to be adjusted every six months based on fluctuations in global fuel prices, was adjusted from Jan 1 to June 30. The Energy Commission said seven million domestic consumers in Peninsular Malaysia, or 85% of the total, would not be affected. This follows the government’s decision to maintain the rebate of two sen per kilowatt-hour (kWh) for users with a monthly electricity consumption of 600kWh and below.

In addition, no surcharge is imposed on consumers with a monthly electricity consumption over 600kWh up to 1,500kWh while a 10 sen/kWh surcharge is maintained for monthly consumption exceeding 1,500kWh.

In light of this, Elmie says the average monthly savings vary depending on the size of the installed solar system capacity. Among GSPARX’s residential customer base, their installed capacity solar system ranges between 4kWac and 12kWac, which are capable of providing average monthly savings between RM250 and RM950.

“It’s important to note that these savings are subject to energy yield and weather conditions,” Elmie adds.

As for the return on investment (ROI), the payback period for a solar installation is dependent on the initial investment cost, energy consumption patterns, government incentives and financing options. Generally, households can expect to see an ROI within five to eight years, says Elmie, with some even experiencing a shorter payback period due to lower electricity bills under the government-driven net energy metering (NEM) scheme.

“Overall, investing in solar energy offers households a tangible way to mitigate the impact of tariff hikes, reduce their reliance on the grid, and achieve long-term savings on their energy expenses,” he says.

Elmie observes that there is increased interest from customers to install rooftop solar photovoltaic (PV) in their premises to better manage their energy consumption and subsequently, reduce their electricity bill. The growing interest in solar solutions is in tandem with the growing trend among property developers looking to construct homes with built-in solar features.

GSPARX has initiated projects with Sime Darby Property and S P Setia to build solar-ready houses, which are expected to contribute to the overall increase in solar installations in Malaysia. This objective clearly aligns with the solar expert’s efforts to drive greater adoption of RE and sustainability.

“In cases where property developers have yet to pursue housing projects with built-in solar, GSPARX is actively exploring opportunities with them to extend partnerships in that area. By collaborating with developers to incorporate solar features into new housing projects, we aim to accelerate the adoption of solar power among homeowners and contribute to the growth of RE usage in Malaysia,” he says.

“GSPARX anticipates continued growth in solar adoption as awareness of the benefits of solar energy increases and as technology advancements drive down costs. Additionally, government incentives and initiatives such as SolaRIS play a crucial role in incentivising solar installation.”

As of April 30 this year, GSPARX has successfully secured over 1,900 residential projects with more steadily progressing to completion of installations.

The Ministry of Energy Transition and Water Transformation (Petra) introduced a solar incentive scheme (Solar for Rakyat Incentive Scheme or SolaRIS) to encourage installation of solar PV systems by domestic users.

SolaRIS offers a one-time cash rebate of RM1,000 per kilowatt alternating current (kWac) with a cap up to RM4,000 for new NEM subscribers upon their successful applications to SEDA Malaysia on or after April 1, 2024.

The scheme, which is administered by Tenaga Nasional, is open to all Malaysian citizens with a one-time limit per individual. Applicants must be Tenaga Nasional account holders and first-time applicants for the NEM Rakyat programme.

This means previous NEM subscribers prior to April 1, 2024, who have installed rooftop solar solutions, are not eligible for this scheme.

The rebate is based on a “first come, first served” basis for NEM quotas applied from April 1 to Dec 31, 2024. Meanwhile, NEM Rakyat applications that have been approved must be operational no later than March 31, 2025, or until all SolaRIS rebate quotas are exhausted.

Since introducing the scheme, more than 30 eligible NEM Rakyat subscribers, who successfully commissioned their solar installation, have been processed to receive the SolaRIS rebate with the majority receiving RM4,000 each.

Tenaga Nasional’s chief retail officer Kamal Arifin A Rahman says the additional quota allocation accorded by the government to NEM Rakyat scheme creates more opportunities for residential customers to become a prosumer (producer-cum-consumer of energy). Prosumers install a rooftop solar PV system in their premises to generate electricity from the sun (as an RE producer) and, at the same time, consume the generated electricity for their own use (consumer).

“The benefits enjoyed include being able to reduce their electricity bill, thanks to the export of excess energy back to the grid. Over time, we can reduce the environmental impact through carbon emission reduction from energy consumption,” he explains.

While socioeconomic challenges may present temporary barriers to solar adoption for some individuals, Kamal believes that the long-term benefits of solar energy, including reduced electricity bills, energy efficiency and environmental sustainability, will resonate with Malaysians.

“Moreover, the increasing emphasis on sustainability and environmental responsibility is likely to further drive interest in solar installations,” he says.

Tenaga Nasional is committed to achieving its environmental, social and governance (ESG) objectives by ensuring that they are aligned with the National Energy Transition Roadmap (NETR), beyond solar power, in order to grow the RE sector as well as hit the country’s RE targets.

Kamal shares that Tenaga Nasional is spearheading three key large-scale RE and clean technology initiatives, namely centralised large-scale solar (LSS) parks, hybrid hydro floating solar (HHFS), and hydrogen and ammonia co-firing projects. Collectively, these initiatives have the capability to deliver more than 3,000mw of RE capacity by 2040 with 2,500mw from HHFS technology and the remaining 500mw sourced from five different LSS parks.

“These projects are critical to Tenaga Nasional’s energy transition plan with the expectation to generate significant RE capacity, foster greater participation in the development of the RE sector and contribute towards the nation’s goal of accelerating energy transition responsibly,” he says.