Sustainable future: Both Loo (left) and Yap believe that by offering more assistance and rebates, the government could accelerate both solar energy and EV adoption in the country.
PETALING JAYA: As Malaysia moves towards its net zero greenhouse gas emission goal by 2050, Budget 2025 should continue prioritising renewable energy adoption, say industry players.
Malaysian Photovoltaic Industry Association former committee member Edmund Loo said the government should continue to boost and promote solar photovoltaic (PV) system initiatives that could benefit both residential users and larger commercial entities.
“We urge the government to maintain the Net Energy Metering (NEM) 3.0 Rakyat programme without a quota limit and defer any application deadlines until necessary.
“Additionally, increasing the installation capacity limits to 6.1kW for single-phase and 22kW for three-phase connections would enable residential users with higher energy consumption to take full advantage of solar PV installations.
“This expansion would drive higher participation from households, further reducing the carbon footprint,” Loo said when contacted.
Loo also said with higher penetration of renewable energy, grid stability becomes increasingly crucial.
“As such, the government should promote the use of smart inverters with fault current limiting capabilities, especially for medium- and high-voltage consumers.
“These technologies can help stabilise the grid, manage distributed generation and ensure seamless integration of renewable energy,” he said.
In addition, he said the introduction of the Corporate Green Power Programme (CRESS) could help private sector players adopt renewable energy solutions and enhance effectiveness.
Loo added that by offering additional rebates for solar PV systems with electric vehicle (EV) charging stations, it could accelerate both solar energy and EV adoption.
“This integration would contribute to decarbonising both the energy and transport sectors, aligning with Malaysia’s sustainability goals,” he said.
Meanwhile, Lionel Yap, a solar industry pioneer and solar project development expert, said the government should continue to encourage domestic and residential rooftop solar PV installation.
“The government should introduce a similar programme to Solar For Rakyat Incentive Scheme (SolaRIS) by giving personal income tax relief for solar PV system installation up to RM50,000 of total expenditure over a period of five years.
“We also propose interest-free loan for B40 and interest subsidy loan for M40 who participate in NEM Rakyat rooftop solar programme, plus tax incentive for property developers that develop residential, commercial and industrial development that have solar energy ready in their development plans,” he said.
Yap said the NEM caps for all programmes currently running should also be removed with the implementation to be based on existing guidelines and sound engineering methodology.
“These guidelines should be reviewed every six to 12 months to ensure they are relevant to industry and safety.
“There should also be quicker adoption of ‘On Load Tap Changers’ in existing transformers such as in Germany that have a significant penetration of solar and a stable grid.
“In addition, the Conservation Voltage Reduction can be introduced to reduce kWh consumption of consumers and technical losses on grid.
“These reduce consumers’ bills and also moderate maximum demand on the grid, allowing it to optimise their capex deployment and moderate their regulated asset base,” he said, adding that another avenue of collaboration to explore would be to engage with Agriculture and Food Security Ministry to explore possible cross-pollination between solar PV and agriculture to be rolled into one.
Yap added that the government should also assist Malaysian entrepreneurs to break into overseas markets, leveraging on strong government-to-government ties, which indirectly creates high level jobs for Malaysians in foreign countries and increases the country export income through this new sustainable industry.
