Sime Darby Property leads rooftop solar push under Malaysia new national framework. (Photo: Sime Darby Property)
The Malaysian government has launched a new renewable energy initiative this year aimed at increasing solar generation capacity through community involvement, while also enhancing regional energy flexibility.
Leading the charge is prominent property developer Sime Darby Property (SDP), which plans to begin implementation in Elmina, a township on the outskirts of Kuala Lumpur. The project highlights the benefits of collaboration between public and private sectors.
"CREAM" initiative encourages solar participation from locals
The initiative, called the Community Renewable Energy Aggregation Mechanism (CREAM), is designed to encourage households to lease their rooftops to developers or system integrators for the installation of solar photovoltaic (PV) systems. The electricity generated will then be sold to nearby users with local demand.
Under the program guidelines, all generated power must be channeled through the national grid managed by Tenaga Nasional Berhad (TNB), and supplied to consumers located within a 5-kilometer radius. Currently, only rooftop solar PV is eligible. Future developments targeted for CREAM include mixed-use and industrial-residential buildings.
TNB’s Chief Retail Officer Kamal Arifin A Rahman noted that existing residential infrastructure limitations pose challenges for large-scale rooftop solar deployment under the CREAM model.
To further incentivize corporate use of renewables, Malaysia has already introduced the Corporate Green Power Programme (CGPP) and the Corporate Renewable Energy Supply Scheme (RESS). However, a defining feature of CREAM is its requirement for direct community participation.
SDP leads the way, launching rooftop solar in Elmina near Kuala Lumpur in line with national policy. (Photo: Sime Darby Property)
Sime Darby Property teams up with TNB to drive rooftop solar rollout
In late April, Sime Darby Property announced its commitment to the government’s National Energy Transition Roadmap (NETR), becoming the first developer to promote rooftop solar adoption through the CREAM scheme. In partnership with GSPARX, the solar subsidiary of TNB, the initiative will kick off in Elmina, where homeowners will be invited to sign rooftop leasing agreements.
Azmir Merican, Group Managing Director and CEO of Sime Darby Property, emphasized that leasing rooftop space enables homeowners to benefit from solar without the need for upfront installation, while also supporting national decarbonization goals. The project aims to help reduce carbon emissions from industrial and commercial zones in selected areas.
As part of its sustainability strategy, Sime Darby Property has pledged to cut Scope 1 and Scope 2 carbon emissions by 40% by 2030 and to achieve net-zero by 2050. In 2023, the company signed a memorandum of understanding with GSPARX to explore the joint development of sustainable infrastructure such as community solar, EV charging stations, and microgrid systems.
Source: Sime Derby Property, The Edge Malaysia
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