Since 2005, Malaysia has been actively promoting rooftop solar energy through a series of legislative measures and incentive schemes. The journey began with the initiation of the Building Integrated Photovoltaic (BIPV) program in 2005, aimed at boosting the adoption of solar photovoltaic (PV) technology. Subsequent initiatives such as the National Suria 1000 program in 2007 and the Renewable Energy Act 2011 paved the way for the introduction of the Feed-in Tariff (FiT) scheme. This scheme, under the Sustainable Energy Development Authority Act 2011, facilitates the purchase of electricity generated from renewable resources at a fixed rate and period.
In a bid to further encourage rooftop solar energy production, Malaysia introduced the Net Energy Metering (NEM) in 2016, which has undergone two subsequent versions, namely NEM 2.0 and NEM 3.0. The NEM framework enables consumers to install solar PV systems primarily for self-consumption, with excess energy exported to the grid. The consumer pays only for the difference between monthly consumption and solar energy sales, reflected in their electricity bill from the national utility, Tenaga Nasional Bhd (TNB).
The current NEM 3.0, set to run until 2023, aims to incentivize consumers to install solar PV systems as a hedge against rising electricity costs, according to Ruzaida Daud, deputy director of renewable energy capacity procurement initiative at the Energy Commission.
However, despite these efforts, residential rooftop solar installations remain relatively uncommon in Malaysia. The former managing director of TNBX, Nirinder Singh, attributes this to the perceived lack of cost-effectiveness, citing the comparatively low tariffs and the higher upfront costs of solar PV systems. Singh suggests that the payback period, fixed at 10 years under NEM 3.0, may be a deterrent for homeowners.
Singh emphasizes that real savings are noticeable for consumers with higher electricity bills, typically exceeding RM400 monthly, making solar PV systems more cost-effective in the long run. He also underscores the need for battery storage to maximize the benefits of solar energy, especially considering the disparity between energy generation during the day and actual consumption patterns.
Ruzaida acknowledges that savings and returns on investment vary based on multiple factors, including electricity consumption, rooftop space, installation capacity, and capital expenditure. Despite the existence of schemes like FiT, NEM 2.0, and NEM 3.0, Singh suggests additional measures to boost residential rooftop solar PV installations, such as allowing larger-sized systems and extending the offset rate for excess energy exported to the grid.
As technology advances and market competition drives down solar panel costs, stakeholders anticipate future growth in Malaysia’s rooftop solar sector. While Ruzaida clarifies that solar panel prices are not regulated by the Energy Commission, she emphasizes the importance of safe and efficient installations. With solar panels typically lasting 25 to 30 years, the industry anticipates increased adoption with supportive government policies and evolving technology.