+603 8994 2890
Plus SolarPlus SolarPlus SolarPlus Solar
  • About
    • About Plus Solar
    • Our Story
    • Our Belief
    • Corporate Social Responsibility
    • Career
  • Business
    • Commercial
    • Utility
  • Tech / IoT
  • Schemes
  • Services
  • Portfolio
    • Solar Farm
    • Industrial Property
    • Commercial Building
  • News
  • +DESIGN

Solar Energy Seen to be a Key Investment for Malaysia During Pandemic

    Home Industry Solar Energy Seen to be a Key Investment for Malaysia During Pandemic
    NextPrevious

    Solar Energy Seen to be a Key Investment for Malaysia During Pandemic

    By Sharlene Oong | Industry | 0 comment | 24 July, 2020 | 0

    As business owners prepare to bounce back during this pandemic, research and industry leaders continue to point towards solar as a solution to minimise OPEX and lower their carbon footprint. With the Net Energy Metering (NEM) quota ending this December, a scheme that allows users with a solar photovoltaic (PV) system to export excess solar energy to the grid on a “one-on-one” offset basis, so does the deadline to install solar for business owners.

    Malaysia is an ideal location to harvest solar energy due to its geographical position near the equator which enables her to receive a higher level of solar irradiance. However, in the early 2000s, solar energy was still a mystery as it had yet to come to light in Malaysia. In 2011, the feed-in tariff (FiT) was passed after years of being introduced, leading the nation to move towards a new era of sustainable energy as well as a step forward in combatting the effects of climate change. As the need to build upon the nation’s resources and reduce dependency increased, the ministry introduced the concept of the Net Energy Metering (NEM) scheme to improve the investment of solar photovoltaic (PV) energy for those who invested.

    What is FiT?

    The FiT system obliges Distribution Licensees (DLs) to buy from Feed-in Approval Holders (FIAHs) where the electricity produced from RE sources will set the FiT rate. Then, the DLs would pay for the renewable energy supplied to the grid for a specific period of time. With this mechanism, RE would be set to become a viable long-term investment for many industry players as well as individuals.

    Why Was NEM Introduced and What is it?

    In 2018, with the goal to increase the RE power mix from 2% to 20% by 2025, the NEM scheme was introduced. This was because NEM would complement the FiT and Large-Scale Solar (LSS) programs.

    With NEM, the solar energy generated will be consumed by your building first and the excess energy will be exported into the national grid to offset your TNB bill. This excess energy will be recorded in a credit form by a bi-directional meter and energy credit will be then offset on a “one-on-one” basis per kWh unit. The validity period for this energy credit is 24 months.

    Additionally, under the NEM scheme, there is a quota allocation of 500MWp up to the year 2020 which has been divided into a domestic and non-domestic category. As climate change continues to take on the form of natural disasters, thinning of the ozone layer, the extinction of animals and more, NEM is a policy the Malaysians can do their part in addressing the climate effects. Through this scheme, the public can generate renewable energy and reduce national dependency on fossil fuels.

    That’s Not All…

    Ministry of Energy & Natural Resources Announce 1GWac Worth of Tender Contracts Under LSS@MEnTARI

    In the wake of the economic impact of COVID-19, the nation’s Ministry of Energy and Natural Resources announced that the fourth round of the large-scale solar program is offering 1GWac worth of tender contracts to reactivate the economy. As experts have singled out Malaysia to be a promising market for solar energy, the tender is expected to unlock RM4 bill (US$927 million) in investment and create 12,000 new jobs, according to the Ministry’s estimates.

    Based on the amount of initiatives Malaysia has conducted in the past decade, renewable energy is no longer a stranger to many of us. However, it is a resource we can use to improve business operations, lower the level of carbon emissions and utilise as an engine of growth. As the market has become more liberalised than ever before, the development of solar energy will continuously require effort from the public and private sector. While renewable energy has a long way to go before becoming fully liberalised, Malaysia is showing promising growth to not only survive the current pandemic with the initiative in solar energy but thrive in the future.

    – end-

    Sources: Sustainable Energy Development Authority (SEDA) Malaysia and EdgeProp

    FiT, NEM, plussolar, thenextenergyrevolution, Malaysia, cleanenergy, ecosystem, SolarMalaysia, NetEnergyMetering, 500MWp
    Avatar

    Sharlene Oong

    More posts by Sharlene Oong

    NextPrevious

    Search

    Related Posts

    • Media Reports: Malaysia’s Renewable Energy Industry on the Right Track, Says Clean Energy Solutions Firm
    • Featured in Bernama: Electricity Demand Dips, Renewable Energy Gains Momentum
    • Featured on e27: Plus Solar Looks to Driving Resilient Leadership in 2021
    • Interviewed by DNA: Clean Energy Firm, Plus Solar, Banks on Software to get to Next Level
    • Plus Solar Speaks at American Express’s WIN Virtual Conference 2020
    • Media Reports: Plus Solar Secures RM12Mil Solar Deal With Mah Sing Plastics
    • Featured in Bernama & The Edge: Plus Solar Joins Tech Players to Comment on Budget 2021
    • Media Reports: Plus Solar Reacts to Budget 2021
    • Featured by Gen. T Asia: This Solar Energy Company Wants to Power Asia Into a Cleaner Future
    • Featured by Bernama: Plus Solar Cites 6 Wishes for Govt to Become SEA’s RE Champion
    • Interviewed by The Edge: Green Tech: Saving at Source
    • Featured in e27: Clean Energy in Malaysia: Opportunity Amidst Uncertainty
    • Plus Solar was Featured by Bernama & Astro Awani for Budget 2021 Wishes
    • Interviewed by Bernama: Plus Solar Optimistic of Delivering Good Results in FY21
    • Featured in Business Today: The pandemic push to pivot: The reality of a renewable energy leader
    • Join Plus Solar in Addressing Global Climate Action Day on the 25th of September
    • Interviewed by NST: Digitising Energy Usage
    • Interviewed by Sin Chew: “我们最大的梦想就是打造全新的新能源心态系统.“
    • Benefits of Solar for Your Business
    • Featured by The Edge: Never Waste a Crisis
    • Solar Energy Seen to be a Key Investment for Malaysia During Pandemic
    • Types of Solar Panels: What’s the Best?
    • Plus Solar was Featured for Insights Towards Swift Digitalisation Reforms Needed to Survive
    • Interviewed by The Edge: Using solar panels to cut down on energy bills
    • Featured in Bernama: Plus Solar to help businesses save in electricity costs
    • Featured by The Star: Plus Solar revenue surges to RM150m
    • How COVID-19 Increases the Need for Affordable Clean Energy
    • Plus Solar Stands Up With the Frontliners of COVID-19
    • Featured in Berita Harian: Showcasing Our Dedication to Education
    • The Show Must GO ON: Plus Solar Stands by to Face the Movement Control Order
    • Interviewed by Malaysia Tatler: This Tenacious Entrepreneur Foresees A Bright Future For Malaysia With Solar Energy
    • Interviewed by Oriental Daily: 太阳能未来可期
    • Smart Grid: Will RE Get a Facelift?
    • Featured by Focus Malaysia: [Plus Solar] foresees no impact on operations due to COVID-19 in short run

    Categories

    • Industry
    • Our Blog

    Plus Solar

    In Plus Solar, we believe in powering sustainable growth. Through offering world-class solar PV solutions, we aim to provide the highest solar PV development standards while making the switch to cleaner energy. A simple and effortless process for our customers.

    Information Links

    • Contact Us
    • Career
    • Quote Enquiry
    • Plus Track Login
    • Guides & FAQs
    • Privacy Policies
    • Terms & Conditions

    NEWSLETTER

    • This field is for validation purposes and should be left unchanged.
    © 2020 PLUS SOLAR SYSTEMS SDN BHD.
    • About
      • About Plus Solar
      • Our Story
      • Our Belief
      • Corporate Social Responsibility
      • Career
    • Business
      • Commercial
      • Utility
    • Tech / IoT
    • Schemes
    • Services
    • Portfolio
      • Solar Farm
      • Industrial Property
      • Commercial Building
    • News
    • +DESIGN
    Plus Solar