As Malaysia prepares for the announcement of the 2025 national budget, Solarvest, a clean energy expert, has outlined its desired outlook for initiatives and incentives to further bolster the nation’s renewable energy landscape. These recommendations aim to enhance the growth of solar energy infrastructure, strengthen tax incentives for green technology investments, and accelerate the adoption of clean energy practices in Malaysia.
Key Points from Solarvest’s Desired Outlook:
- Expansion of Net Energy Metering (NEM) and Self-Consumption (SELCO) Programmes
- Increased Capacity Limits: Remove capacity caps for NEM Rakyat, NEM Gomen, and NEM NOVA, and allow transmission interconnection for SELCO projects.
- Green Employment Creation: Highlight job creation from solar PV installations and support companies in achieving ESG goals.
- Incentives for Solar PV Supply Chain Development
- Tax Exemption and Reductions: Continue and expand Sale and Service Tax (SST) exemptions and reductions in import and excise duties for solar PV modules, inverters, charge controllers, and Battery Energy Storage Systems (BESS) through 2029.
- Reinstatement of Green Technology Financing Scheme (GTFS): Revive the Green Technology Financing Scheme to support solar energy projects and accessibility.
- Support for Residential Solar PV Adoption
- Tax Relief for Installation: Propose up to RM50,000 tax relief for solar PV installations, with annual relief of up to RM10,000 over 5 years.
- Interest-Free Loans: Introduce interest-free loans for B40 and interest-subsidised loans for M40 in the Net Energy Metering (NEM) Rakyat Programme.
- Tax Incentives for Developers: Offer tax incentives (Green Investment Tax Allowance/Green Income Tax Exemption) for property developers incorporating solar energy solutions.
- Advancement of Distributed Generation and Grid Enhancement
- Smart Grid Technologies: Advocate for policies and RM50 million funding for demand-side management and peer-to-peer energy trading.
- Grid Infrastructure Upgrade: Request RM30 billion to enhance grid infrastructure, EV charging networks, and BESS support.
- Tax Incentives for EVs: Extend tax incentives for electric vehicles and EV Charge Point Operators.
- Support for Sustainable Energy Self-Sufficiency
- Training and R&D Funding: Request RM50 million for solar industry training and research, plus funds for grid stability studies.
- Innovative Land Use Programmes: Propose Agrivoltaic and Aquavoltaic programmes to optimise land use and boost renewable energy and food production.
- Local Participation: Ensure ground-mounted and floating solar PV projects for SELCO involve local companies with majority Malaysian equity.
Davis Chong Chun Shiong, Executive Director and Group Chief Executive Officer of Solarvest Holdings Berhad and President of the Malaysian Photovoltaic Industry Association (MPIA), said:
“We believe that Malaysia has the potential to be a global leader in renewable energy. As we look ahead to the 2025 budget, we hope the government will continue its support for green technology investments and introduce more tax incentives to accelerate the adoption of solar energy across the nation. Our desired outlook reflects the strategic opportunities available for both public and private sectors to collaborate in advancing Malaysia’s clean energy goals and achieving a low-carbon future.”
As a leader in Malaysia’s renewable energy industry, Solarvest remains committed to driving innovation in clean energy. The company believes that strategic investments and incentives in the upcoming national budget will play a pivotal role in accelerating Malaysia’s energy transition towards a low-carbon future.
