Malaysia aiming to spur residential solar PV via new incentive scheme


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Malaysia’s Ministry of Energy Transition and Water Transformation (PETRA) has launched a solar incentive scheme (Solar for Rakyat incentive scheme or Solaris) to encourage installation of solar PV systems by domestic users.

Fadillah, who is also the deputy prime minister, said in a statement on March 27 that the installation of solar PV in residential premises by domestic users represents a “quick win” in government’s bid to boost its renewable energy efforts.

“Considering its significant potential, the installation of solar PV systems in residential premises should be expanded to support the government's efforts to increase renewable energy capacity in the electricity supply system to 70% by 2050 and to cut carbon emissions from the electricity supply sector,” he said.

The incentive scheme will offer a rebate of up to RM 4,000 per kilowatt alternating current (kW-AC) to new net energy metering (NEM) users who submit NEM applications to the Sustainable Energy Development Authority (SEDA) on or after April 1, 2024.

Solaris, which will be administered by the Tenaga Nasional Bhd (TNB), is open to all Malaysian citizens with a one-time limit per individual, who is a TNB account holder, as well as first-time applicants for the NEM Rakyat program.

Furthermore, the rebate is based on a “first come, first served” basis for NEM quotas applied from April 1 to Dec 31, 2024. NEM Rakyat applications obtained must be operational no later than March 31, 2025.

According to Fadillah, “The rebate payment will only be made after the installation and operation of the solar PV system under the NEM Rakyat program, in the name of the bill holder and will be deposited into the user's local bank account, subject to the terms and conditions of the claim.”

In a bid to enhance public participation in renewables, Fadillah said that the government has also agreed to approve an extra allocation of 100 MW for the NEM Rakyat program, increasing the total allocated quota to 350 MW.

"With these provisions, we believe that Solaris can attract more domestic users to participate and benefit from the installation of solar systems in residential premises, thereby contributing to energy transition aspirations and the country's carbon-neutral targets by 2050," Fadillah added.

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