KUALA LUMPUR (Sept 21): Tera VA Sdn Bhd, a wholly owned subsidiary of BM Greentech Bhd (KL:BMGREEN), has urged the government to extend the Net Energy Metering (NEM) and Solar for Rakyat Incentive Scheme (SolaRIS) programmes by an additional two years in the upcoming Budget 2025.

The solar photovoltaic (PV) engineering, procurement, and construction company also called for an increase in the SolaRIS quota to accommodate growing installation demand.

“Expanding solar PV installation coverage can alleviate pressure on the grid and benefit communities reliant on it for electricity,” said managing director Michael Leong in a statement on Friday.

Since the introduction of SolaRIS on April 1, 2024, 667 users have completed solar PV installations under the NEM programme as of July 9, 2024. Following SolaRIS’s launch, daily domestic applications surged from approximately 100 to 150, and the programme’s allocated quota was expected to be fully utilised by Sept 11, 2024.

Regarding the Corporate Renewable Energy Supply Scheme (CRESS), Leong advocated for a gradual liberalisation of the grid to encourage broader participation and create a comprehensive framework.

He further requested that the government open the scheme to corporates with existing electricity supply needs, rather than solely to those requiring new or additional capacity, as many businesses do not have increasing electricity demands.

“This change would foster healthy competition, ultimately benefiting electricity users through competitive rates while supporting the national objective of reducing carbon emissions,” he noted.

Leong also called for government support for small and medium enterprises (SMEs) in their sustainability efforts.

He suggested standardising the Low Carbon Transition Facility (LCTF) and reducing financing rates, or publishing a schedule for applicable LCTF rates.

The LCTF, a financing initiative by Bank Negara Malaysia (BNM), offers funding at rates of up to 5% per annum and was launched in 2022 to help SMEs adopt sustainable practices for business resilience.

According to BNM’s latest annual report, over RM800 million of the RM1 billion allocated remains available.

“For smaller companies, the maximum 5% rate can significantly impact cash flow, forcing them to prioritise operational sustainability over sustainability initiatives,” Leong added.

Budget 2025 is scheduled to be presented in Parliament on Oct 18, 2024.

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