Official data from Malaysia shows that the country’s solar power generation capacity has grown significantly in recent years and now accounts for 92% of its total renewable energy installed capacity .
To achieve its goals of increasing renewable energy to 31% of the national energy mix by 2025 and 40% by 2035, the Malaysian government has introduced various policies and incentives to stimulate growth in the renewable energy sector .
The Sustainable Energy Development Authority (SEDA) of Malaysia has launched several key policies specifically supporting solar power development, including :
- Net Energy Metering (NEM) Scheme: Allows consumers to install solar photovoltaic systems and sell excess energy back to the grid. The surplus energy is credited to the next billing cycle, reducing future electricity costs. Unused credits are forfeited at the end of the contract year.
- Self-Consumption (SELCO) Scheme: Encourages consumers to directly use the solar energy they generate, reducing reliance on the grid.
- Large Scale Solar (LSS) Program: Focuses on developing large-scale solar projects to significantly contribute to the national energy structure.
- Corporate Green Power Program (CGPP): Incentivizes businesses to invest in renewable energy projects, promoting private sector participation in the transition to clean energy.
In addition, the government has implemented initiatives such as the Feed-in Tariff (FiT) to ensure the smooth achievement of renewable energy targets . According to statistics from SEDA, since its launch in 2011, the FiT policy has attracted approximately $1.2 billion in investments for Malaysia’s renewable energy sector .
However, industry experts point out that despite rapid growth in renewable energy, challenges remain. The intermittent nature of renewable sources like solar and wind requires corresponding energy storage solutions. Meanwhile, Malaysia’s existing grid infrastructure needs upgrades to effectively integrate the growing share of renewable energy .
To address these issues, the Malaysian government has identified the renewable energy sector as a key driver of economic growth and job creation, offering various incentives such as tax exemptions and subsidies to attract more investment . According to forecasts by the Ministry of Energy and Natural Resources, the growth of the renewable energy sector is expected to create over 50,000 jobs in the country .
