Depending on the size of the system and electricity consumption, Malaysian homeowners can save up to 90% of their electricity bills
Malaysia’s current energy landscape is dominated by fossil fuels, with coal accounting for the largest share (77.3 terawatt hours), natural gas (63.3 terawatt hours), followed by hydroelectric, renewables, and oil. Renewable energy sources comprise only 17% of the country’s energy mix, with hydroelectricity being the largest contributor in 2021.
With climate change issues, we will need to adapt the way we consume and create energy. This is especially true if our economic growth rate continues to drive up our energy demand. One way to adapt the way we consume and create energy is to adopt solar energy.
Because of Malaysia’s strategic geographical location, we are gifted with a natural tropical environment that allows us to receive daily sun radiation as high as 4500 kWh/m2 all year.
Solar energy is so plentiful that solar panels can easily harness it to produce power. However, many homeowners may be unaware of solar energy’s advantages, due to a lack of solar awareness, accessibility, and knowledge within the society. Let us discover the significance of adopting solar energy and how it can make Malaysia a more sustainable nation.
Environmental benefits: Carbon reduction
Most of the electricity consumed in Malaysia is generally produced with natural gas, burning fossil fuels, hydropower, and Moth-Flame Optimisation (MFO). These elements are expensive and generate harmful carbon dioxide (CO2) emissions which are associated with climate changes and global warming- where big wildfires are already destroying forests and homes, and the hot climate is making it hard to grow food due to lack of water.
According to a research, the number of CO2 emissions in the country reached up to 251,555.33 kilotonne (KT) in 2021, a slight decrease from 256,191.49 KT in 2020. This shows that Malaysia is progressing slowly toward greener resources, but there is still a long way to go. However, with solar energy and other renewable resources such as wind and hydropower readily abundant, it is expected that the country will be able to achieve net zero carbon emission by 2050, ahead of Singapore and Indonesia.
By choosing solar energy as an alternative, we initiate a transformative process that significantly diminishes the release of CO2 and other noxious gases into the atmosphere. This is because these gases trap heat in the atmosphere and make the Earth warmer which leads to severe environmental problems and people’s health all around the world. And solar energy offers a way out of this cycle.
Not only does it go beyond emission reduction, it also extends to a holistic approach in safeguarding air and water quality- unlike fossil fuels, whose combustion pollutes the air and contaminates precious water resources, solar energy uses sunlight to make electricity without polluting anything.
Financial Benefits: Savings and Income
With the recent rising temperatures due to global warming and more people turning to remote work, it is no surprise that electricity consumption in Malaysia is at an all-time high. This evidently also causes electricity bills to rise, where one residential home can cost up to RM400 per month which is quite hefty to pay.
Other than that, with the recent government planning on ending blanket subsidies in the country, households in the Top 20 (T20) income range and multinational corporations (MNCs) might find themselves obligated to allocate a greater sum for their monthly electricity consumption. This situation has led to consumer concerns regarding their upcoming bill as it could potentially influence their monthly budget.
Hence, utilising solar energy to power your home and appliances is an inexpensive approach to reducing this cost. As Malaysia receives at least four hours of sunlight daily, homeowners can save a significant amount of money on their electricity bills with solar panels. Depending on the size of the system and electricity consumption, Malaysian homeowners can save up to 90% of their electricity bills.
This means if your TNB bill costs around RM280 per month and you install 10 solar panels with a capacity of 4.7 kWp, you could potentially save about RM280 per month on electricity. The system would cost around RM20,000 which is a bit expensive, but it would definitely pay for itself in a few years.
Not only that, as part of the newly launched National Energy Transition (NETR) plan, the government is also in plans to provide incentives to boost the usage of renewable energy (RE). With this scheme, consumers can lease out their rooftops and if the solar system generates more energy than your home or business consumes, the excess energy is fed back into the utility grid. This extra energy can then be sold to the local power company, earning you a profit- a win-win situation, one for yourself and one for the environment.
Supporting Malaysia’s Renewable Energy Goals
The Malaysia Renewable Energy Roadmap (MyRER) sets an ambitious objective of renewable energy producing 31% of the nation’s energy needs by 2025 and 40% by 2035. The government has also pledged to increase RE capacity to 70% by 2050, in keeping with the national climate goal of reaching net zero GHG emissions by 2050.
According to Global Data Energy, Malaysia is expected to require RM33 billion (US$8 billion) in renewable energy investments to meet its 2025 target. The anticipated investments would come not only from the government but also from public-private partnerships and private funding. Under the Green Investment Tax Allowance (GITA), business owners can also benefit from a tax discount of up to 48% of the investment cost, making the switch to solar power both economically and environmentally responsible.
In the pursuit of supporting the government’s initiatives, many residential solar energy companies are dedicated to making solar energy more accessible to people, including those who may not have previously considered renewable energy. Residential solar companies are now actively promoting solar PV installation acceptance by providing high-quality products, good service, and affordable financing options.
These companies are offering various financing alternatives as one of the many strategies for making solar adoption more affordable. With options like the 0% interest credit card payment plans for up to 60 months and loan financing for up to 10 years, a larger portion of the population will be able to afford solar systems, lowering the initial financial barrier.
The future of solar energy in Malaysia
We see a promising and expansive future for solar energy in Malaysia over the next five to ten years. This can be proven as the adoption of solar energy in Malaysia has been growing steadily, where it has already surpassed the full-year total for 2022 by 5% within the first half of 2023. This steady growth reflects homeowners’ growing appreciation of the financial and environmental advantages of solar energy. The cost of solar systems is anticipated to continue falling as technology develops, making solar installations a more cost-effective option for both residential and business users.
At Verdant Solar, we believe the falling cost of solar components, combined with efficiency gains and the government’s strong commitment, will make solar energy an increasingly more appealing and realistic alternative for a wide spectrum of consumers. This trend is likely to be fuelled further by a broader range of financing alternatives that can make solar installations more accessible to everyone, regardless of economic background.
By making solar energy a bigger part of our lives, we are creating a story where people and nature can thrive together. This change isn’t always easy, but it is a journey for Malaysians toward a brighter future where we use smart, innovative and safe approaches to empower our world. The fact that Malaysia is steadily advancing towards a greener and more sustainable future is encouraging, and it portends a strong and rising market for solar energy products in the nation.
