Malaysia may have target ambitious goals of 70% renewable energy capacity and net-zero emission by 2050, but industry leaders believe that its policies are still lagging behind.
Davis Chong, president of Malaysian Photovoltaic Industry Association, said that there continues to be various constraints in the domestic renewable energy space, despite the government’s positive move to launch the National Energy Transition Roadmap in July.
He said,“One such area is rooftop solar projects, especially for the business-to-business segment. This includes unnecessary limits that are set by the government in programmes like the Net Energy Metering and Self-Consumption.”
Chong is also the CEO of Solarvest Holdings Bhd, he was speaking at a panel discussion during the 25th Malaysian Finance Association International Conference held at Taylor’s University.
He also mentioned that the PV industry no longer needs incentives for large solar power generation.
“The whole ecosystem works very well, with a low levelized cost of energy right now, attractive solar panel prices and all industry stakeholders provide a very competitive cost to undertake projects. So, we don’t need tax incentives for utility-scale solar projects,” he added.
However, Chong emphasized the importance of channeling more incentives to households to encourage the adoption of rooftop solar panels.
Besides, banks must also provide more green financing options for households with cheaper interest rates.
“We don’t see this kind of assistance being given to the households. That is why the adoption of residential solar is not at the level we want,” Chong said.