In Malaysia, our renewable energy sector now offers mature investment pathways for property portfolios. Property owners and investors can access advanced residential solar installations to increase asset values and reduce operational costs. The current market presents optimal timing for implementation, supported by enhanced government incentives and proven technology performance metrics.
Malaysia’s Strategic Energy Vision
The National Energy Transition Roadmap (NETR) outlines Malaysia's comprehensive strategy to transform its energy sector. With 10 flagship catalyst projects and 6 energy transition levers, the roadmap provides a clear framework for sustainable development.
2030 & 2050 Renewable Capacity Milestones
The Malaysian government has set clear targets for renewable energy adoption: 31% of our power should come from renewable sources by 2025, increasing to 40% by 2035, and 70% by 2050. This commitment means more incentives and support for businesses and property owners who invest in renewable energy solutions, particularly solar power.
Net-Energy Metering & Large-Scale Solar (LSS) Schemes
2 main programmes currently drive Malaysia's solar power adoption:
Large-Scale Solar (LSS) Programme
- Recently approved 13 new projects, adding 1,975 MW of capacity
- Creates opportunities for land owners and large-scale investors
- Projects scheduled for completion between 2027-2028.
Self-Consumption (SelCo) Scheme
- Enables direct use of generated solar power
- Reduces grid dependency
- Option to add battery storage for extended usage.
As of July 2025, the Net Energy Metering (NEM) 3.0 scheme has closed to new applicants. The SelCo programme now serves as the default route for residential, commercial, and industrial solar users.
While these ambitious targets set the direction, Malaysia has implemented robust financial and policy frameworks to turn vision into reality. These enablers create practical pathways for businesses and individuals to participate in the renewable energy transition.
Key Enablers of the National Transition
The Malaysian government has implemented robust financial and policy frameworks to accelerate renewable energy adoption. These enablers create a supportive environment for individuals and businesses investing in clean energy solutions.
Green Investment Tax Incentives & Financing
Current incentives make renewable energy investments more attractive:
Green Investment Tax Allowance (GITA)
- 100% capital allowance, offsetting up to 70% of income over 5 years
- Reduce your tax burden for up to 5 years
- Available for both small and large installations.
Green Income Tax Exemption (GITE)
- Up to 70% tax exemption for solar leasing projects
- Perfect for businesses looking to diversify into energy generation
- Available for projects between 3-30 MW.
Green Technology Financing Scheme (GTFS)
- Government backs 60% of green loans
- Save with a 2% interest rate reduction for 7 years
- Available through 2025 (while quota lasts).
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Corporate RE100 Pledges & ESG Integration
The Corporate Renewable Energy Supply Scheme (CRESS) enables:
- Direct power purchase agreements with renewable energy generators
- Long-term energy cost management
- Achievement of corporate sustainability goals
- Enhanced ESG performance for investors.
As financial incentives make renewable energy more accessible, technological advances are creating diverse implementation options for different property types and energy needs. These solutions leverage Malaysia's natural resources while addressing specific user requirements.
Technologies Powering the Shift
Recent technological advances and declining costs have made renewable energy in Malaysia increasingly accessible to businesses and homeowners. The country's diverse renewable energy portfolio leverages its natural resources and geographic advantages.
Utility-Scale Solar & Floating PV Deployment
Recent developments show various ways to implement solar power:
For Businesses
- Rooftop installations to offset high daytime energy use
- Solar carparks that provide shade while generating power
- Ground-mounted systems with battery storage.
Battery Storage & Hydrogen Innovation
Modern energy solutions now include:
- Battery systems for storing solar power
- Smart monitoring for optimal performance
- Grid integration technology for reliable supply.
The combination of policy support, financial incentives, and technological solutions creates multiple benefits beyond energy cost savings. These advantages extend to both individual properties and the broader community.
Socioeconomic & Environmental Benefits
The transition to renewable energy delivers both immediate cost savings and long-term strategic advantages for Malaysian businesses and communities. This shift creates new opportunities while supporting national sustainability goals.
Green Jobs & Workforce Upskilling
The renewable energy sector creates opportunities in:
- System design and installation
- Project management
- Technical maintenance
- Energy consulting
- Grid modernisation.
Carbon Reduction Trajectory vs Business-as-Usual
Installing renewable energy systems delivers:
- Immediate reduction in electricity bills
- Protection against future energy cost increases
- Enhanced property value
- Reduced carbon footprint
- Supports Malaysia’s pledge to cut carbon intensity 45% by 2030 (vs 2005).
As Malaysia's renewable energy sector continues to evolve, choosing the right partner becomes crucial for successful implementation. Experience, technical expertise, and comprehensive support make the difference in achieving optimal results.
Partner with Northern Solar to Accelerate Renewable Energy in Malaysia
Northern Solar brings trusted expertise as an Engineering, Procurement, Construction, and Commissioning (EPCC) provider in Malaysia's renewable energy sector. We guide property owners and businesses through every step of solar adoption, from initial design to final grid connection. Our team ensures your renewable energy investment maximises returns while meeting all regulatory requirements and technical standards.
The current combination of government incentives, proven technology, and rising energy costs makes this an ideal time to invest in solar power. Contact our team today to explore how we can help you benefit from the transition to renewable energy in Malaysia.
