Ace Market-bound Verdant Solar expects strong earnings potential from two solar government programmes, Solar ATAP and CREAM.
KUALA LUMPUR (Sept 29): ACE Market–bound rooftop solar installer Verdant Solar Holdings Bhd expects strong earnings potential from offering engineering, procurement, construction and commissioning (EPCC) services for two government solar programmes: the upcoming Solar Accelerated Transition Action Programme (Solar ATAP) and the existing Community Renewable Energy Aggregation Mechanism (CREAM) initiative.
Solar ATAP allows excess solar energy to be sold back to the grid, while CREAM lets companies lease rooftops and sell solar power to nearby customers within 5km.
Managing director Lim Tzer Haur said Solar ATAP, which will take effect on Dec 1, 2025, promises “longer term and bigger system size” projects without a fixed size cap. “We will put a lot of focus into this programme,” Lim told reporters after Verdant Solar’s initial public offering (IPO) prospectus launch on Monday.
The Solar ATAP programme is designed to replace the current Net Energy Metering (NEM) programme. The introduction gives the industry "clarity and business continuity", enabling companies like Verdant Solar to hire and scale with confidence, according to Lim.
Verdant Solar plans to begin offering EPCC services for Solar ATAP projects once the programme guidelines and registration system go live on the Energy Commission and Sustainable Energy Development Authority (Seda) websites in December.
Verdant Solar also sees strong potential in CREAM due to its focus on large-scale rooftop projects and believes it can play a key role, said Lim.
"Installing panels on top of 200 roofs is our strength. This tool will be something we will explore a lot over the next few months,” Lim added.
Currently, Verdant Solar offers EPCC services under the NEM, self-consumption or SelCo (with battery energy storage systems) and Solar for Rakyat Incentive Scheme (SolaRIS) programmes, but has yet to secure contracts with energy companies participating in CREAM that lack EPCC capabilities.
SelCo allows usage of the solar power produced but blocks excess from entering the grid. Meanwhile, SolaRIS is a government programme to encourage more solar panels on homes.
Verdant Solar has been in the solar photovoltaic industry since 2015, evolving from residential marketing to full EPCC services in 2019 and operations and maintenance in 2023.
In the financial year ended June 30, 2025 (FY2025) alone, Verdant Solar completed 4,038 EPCC projects, more than double the previous year, including 3,983 residential and 55 commercial/industrial projects. Its cumulative installed capacity now stands at 70.10MWp.
The company is concurrently pursuing an IPO of up to RM66.83 million on the ACE Market at 31 sen per share, which will give it a market capitalisation of RM253.46 million, or roughly 14 times its earnings for FY2025. Applications close on Oct 7, with listing slated for Oct 22.
The Verdant Solar board is chaired by Ong Wei Liam @ Jeremy Ong, who concurrently serves as an independent non-executive director at Vestland Bhd (KL:VLB), a construction firm.
Mercury Securities is the principal adviser, sponsor, underwriter and placement agent for the IPO.
Lim reiterated that Verdant Solar will reinvest IPO proceeds to expand its branch network, pursue acquisitions and strengthen its digital infrastructure, prioritising growth over near-term dividends.