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Malaysia Needs to Expand Solar Energy Usage to Secure Future Energy Needs

28 February 2025 / By Othman
Malaysia Needs to Expand Solar Energy Usage to Secure Future Energy Needs

Malaysia Needs to Expand Solar Energy Usage to Secure Future Energy Needs

 Malaysia must accelerate its adoption of solar energy, as it has the potential to become a key source of electricity for the nation, according to an expert.

Senior Lecturer at the Faculty of Science and Technology, Universiti Sains Islam Malaysia (USIM), Dr. Shahino Mah Abdullah, highlighted that despite Malaysia’s advantage of receiving abundant sunlight year-round, solar energy still contributes a relatively small percentage to the country’s total electricity generation.

“There is significant room for Malaysia to expand solar power plants and establish solar as a primary energy source. Solar energy is not only clean but also a renewable resource that is freely available from the sun,” he stated in an interview with Bernama.

Dr. Shahino pointed out that advancements in the solar panel manufacturing industry have led to a drastic reduction in panel prices. Coupled with various incentives, this makes solar energy systems more accessible for individuals, private businesses, and government entities.

The discussion comes in light of the upcoming electricity tariff adjustments under the Imbalance Cost Pass-Through (ICPT) mechanism, which allows fuel costs to be revised every six months based on global price fluctuations.

Solar Energy is Gaining Traction in Malaysia

Dr. Shahino noted that Malaysia is no stranger to solar energy, with numerous solar power plants developed by local companies, including Tenaga Nasional Berhad (TNB), the country’s main electricity provider.

While public interest in clean energy is growing, affordability remains a challenge for middle- and lower-income groups due to installation costs and the need for suitable housing infrastructure. However, for those who can afford it, the Net Energy Metering (NEM) program offers an attractive option.

“With NEM, excess solar energy generated at home can be exported back to the grid, reducing monthly electricity bills. As electricity demand continues to rise, this initiative helps power providers meet the country’s energy needs while promoting sustainability,” Dr. Shahino explained.

Beyond cost savings, increased solar adoption contributes to reducing carbon emissions, aligning with Malaysia’s goal of achieving net-zero carbon emissions by 2050.

Solar PV Prices Have Dropped Significantly

Meanwhile, Associate Professor Dr. Jasrul Jamani Jamian from Universiti Teknologi Malaysia (UTM) emphasized that installing solar photovoltaic (PV) panels can reduce reliance on TNB’s electricity supply, insulating users from ICPT-related cost fluctuations.

“While the initial investment for solar PV systems remains substantial, costs have dropped significantly over the past decade. For example, a 10-kilowatt peak (kWp) system that cost around RM140,000 ten years ago is now priced at approximately RM40,000,” he said.

With solar technology becoming more affordable and various government incentives in place, Malaysia is at a pivotal moment to expand its solar energy adoption. Embracing solar not only reduces electricity costs but also enhances energy security and sustainability for future generations.

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