{"id":46400,"date":"2023-09-21T01:02:45","date_gmt":"2023-09-21T01:02:45","guid":{"rendered":"https:\/\/energytracker.asia\/?p=46400"},"modified":"2023-09-21T01:02:49","modified_gmt":"2023-09-21T01:02:49","slug":"solar-energy-in-malaysia","status":"publish","type":"post","link":"https:\/\/energytracker.asia\/solar-energy-in-malaysia\/","title":{"rendered":"Solar Energy in Malaysia: A Bright Future or Dim Prospect?"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p><strong>Solar energy in Malaysia<\/strong> is at its early stage. As climate change accelerates, Southeast Asia is focusing increasingly on clean and renewable energy to reduce greenhouse gas emissions. This starkly contrasts the region\u2019s historically heavy reliance on fossil fuels, which has fueled major economic growth over the last two decades. Southeast Asia\u2019s energy demand&nbsp;has doubled&nbsp;since 2000, and renewable capacity has nearly tripled.<\/p>\n\n\n\n<p>Malaysia has followed this trend, with <a href=\"https:\/\/energytracker.asia\/renewable-energy-in-malaysia\/\">renewable energy capacity<\/a> increasing by over 3.5 times since 2000. However, even with this significant increase, renewable energy&nbsp;<a href=\"https:\/\/ourworldindata.org\/energy\/country\/malaysia\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">only makes up<\/a>&nbsp;about 8% of its total energy mix. This is heavily dependent on hydropower (6.3% of the energy mix), a reliable source of low-carbon energy. However, its use is&nbsp;<a href=\"https:\/\/www.waterpowermagazine.com\/features\/featureharnessing-hydropower-in-malaysia-8396270\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">regionally specific<\/a>&nbsp;and primarily in Borneo Malaysia.<\/p>\n\n\n\n<p>The country is looking for alternative options to to generate electricity and increase renewable energy access, and solar is&nbsp;<a href=\"https:\/\/www.pv-tech.org\/solar-pv-to-lead-malaysias-energy-transition-up-to-153gw-capacity-by-2050\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">coming into the spotlight<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-solar-energy-in-malaysia-current-state-and-prospects\"><strong>Solar Energy in Malaysia: Current State and Prospects<\/strong><\/h2>\n\n\n\n<p>Solar power in Malaysia is still in its nascent stages, contributing to&nbsp;<a href=\"https:\/\/ourworldindata.org\/grapher\/energy-consumption-by-source-and-country?country=~MYS\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">less than 1%<\/a>&nbsp;of the country\u2019s total energy consumption. However, the&nbsp;<a href=\"https:\/\/www.mida.gov.my\/mida-news\/malaysia-aims-31-re-capacity-by-2025\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">government\u2019s goal<\/a>&nbsp;of increasing the country\u2019s share of renewable energy to 31% by 2025 places a significant emphasis on solar.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"663\" height=\"410\" src=\"https:\/\/energytracker.asia\/wp-content\/uploads\/2023\/09\/national-re-goals.jpg\" alt=\"Malaysia's projected renewable energy mix to meet 2050 target.\" class=\"wp-image-46401\" srcset=\"https:\/\/energytracker.asia\/wp-content\/uploads\/2023\/09\/national-re-goals.jpg 663w, https:\/\/energytracker.asia\/wp-content\/uploads\/2023\/09\/national-re-goals-300x186.jpg 300w\" sizes=\"auto, (max-width: 663px) 100vw, 663px\" \/><figcaption class=\"wp-element-caption\">Malaysia\u2019s renewable energy forecast to meet its 2050 goal. Source: <a href=\"https:\/\/theinscriptivefive.wordpress.com\/2014\/12\/07\/scenario-development-of-renewable-energy-in-malaysia\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">The Inscriptive Five<\/a><\/figcaption><\/figure>\n\n\n\n<p>This growth will hinge on three leading considerations. First, there will be a major revamp of&nbsp;<a href=\"https:\/\/www.power-technology.com\/comment\/malaysia-renewables-growth\/?cf-view\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">government policies<\/a>&nbsp;to facilitate utility-scale solar projects. Second, the country\u2019s solar PV module production capacity, the&nbsp;<a href=\"https:\/\/www.statista.com\/statistics\/668749\/regional-distribution-of-solar-pv-module-manufacturing\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">third-largest<\/a>&nbsp;in the world, will focus on domestic use instead of lucrative external markets. Third, an investment of&nbsp;<a href=\"https:\/\/www.reuters.com\/business\/energy\/malaysia-needs-invest-375-bln-renewables-reach-2050-climate-goals-report-2023-03-09\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">USD 375 billion<\/a>&nbsp;by 2050 will be made in renewable energy infrastructure.<\/p>\n\n\n\n<p>If successful, Malaysia can tap into&nbsp;<a href=\"https:\/\/www.pv-tech.org\/solar-pv-to-lead-malaysias-energy-transition-up-to-153gw-capacity-by-2050\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">a valuable portion<\/a>&nbsp;of its 337 GW of potential solar capacity available.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-is-malaysia-suitable-for-solar-energy\"><strong>Is Malaysia Suitable for Solar Energy?<\/strong><\/h3>\n\n\n\n<p>Malaysia\u2019s high solar energy capacity is primarily due to its geographic location. Straddling the equator, it receives solar radiation at a&nbsp;<a href=\"https:\/\/sciencing.com\/sun-intensity-vs-angle-23529.html\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">direct 90-degree angle<\/a>. This allows solar radiation to reach Earth more densely than at higher latitudes \u2013 providing more energy per square metre.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"532\" src=\"https:\/\/energytracker.asia\/wp-content\/uploads\/2023\/09\/Malaysia-solar-Irradiance-1024x532.png\" alt=\"Map of solar irradiance in Malaysia.\" class=\"wp-image-46407\" srcset=\"https:\/\/energytracker.asia\/wp-content\/uploads\/2023\/09\/Malaysia-solar-Irradiance-1024x532.png 1024w, https:\/\/energytracker.asia\/wp-content\/uploads\/2023\/09\/Malaysia-solar-Irradiance-300x156.png 300w, https:\/\/energytracker.asia\/wp-content\/uploads\/2023\/09\/Malaysia-solar-Irradiance-768x399.png 768w, https:\/\/energytracker.asia\/wp-content\/uploads\/2023\/09\/Malaysia-solar-Irradiance-1536x798.png 1536w, https:\/\/energytracker.asia\/wp-content\/uploads\/2023\/09\/Malaysia-solar-Irradiance-2048x1063.png 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/solargis.com\/maps-and-gis-data\/download\/malaysia\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Solar GIS<\/a><\/figcaption><\/figure>\n\n\n\n<p>However, the country\u2019s tropical climate counterbalances this with frequent cloud cover, leading to an average of&nbsp;<a href=\"https:\/\/climateknowledgeportal.worldbank.org\/country\/malaysia\/climate-data-historical\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">6 hours<\/a>&nbsp;of sunlight daily. Malaysia&nbsp;<a href=\"https:\/\/www.sciencedirect.com\/science\/article\/pii\/S2214157X19304319\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">receives approximately<\/a>&nbsp;4-5 kWh\/m2 of solar irradiance per day,&nbsp;<a href=\"https:\/\/documents1.worldbank.org\/curated\/en\/466331592817725242\/pdf\/Global-Photovoltaic-Power-Potential-by-Country.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">one of the highest<\/a>&nbsp;rates in Southeast Asia.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-so-why-is-solar-power-not-popular-in-malaysia\"><strong>So Why Is Solar Power Not Popular in Malaysia?<\/strong><\/h3>\n\n\n\n<p>Even with a high capacity for solar, adoption remains low for both residential and utility-scale systems. In both cases, costs for implementing solar are still higher than alternatives. While solar prices have steadily declined, they&nbsp;<a target=\"_blank\" href=\"https:\/\/academic.oup.com\/ce\/article\/6\/4\/619\/6648539\" rel=\"noreferrer noopener\">must compete<\/a>&nbsp;with already subsidised electricity costs and a government-supported fossil fuel industry. Reducing this gap will rely on solar-specific subsidies and incentives.<\/p>\n\n\n\n<p>On the residential side, another major roadblock is the&nbsp;<a href=\"https:\/\/penerbit.uthm.edu.my\/ojs\/index.php\/IJSCET\/article\/download\/12352\/5601\" target=\"_blank\" rel=\"noreferrer noopener\">lack of knowledge and preparedness<\/a>&nbsp;for solar energy adoption. Studies show that many homeowners are unaware of where to get solar panels, installation cost, the benefits they can provide and any government incentives for installing a solar system. Not only does the government need to offer financial incentives for the residential sector, but it needs to develop awareness campaigns and provide education.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-domestic-solar-panels-price\"><strong>Domestic Solar Panels Price<\/strong><\/h3>\n\n\n\n<p>Focusing on the pricing issue, the cost to install solar panels is disproportionately higher than in other countries.<\/p>\n\n\n\n<p>For example, the average solar panel system cost in Malaysia is about&nbsp;<a href=\"https:\/\/www.buysolar.my\/resources\/articles\/the-average-cost-for-residential-solar-installation\" target=\"_blank\" rel=\"noreferrer noopener\">USD 1.50<\/a>&nbsp;per watt compared to&nbsp;<a href=\"https:\/\/www.consumeraffairs.com\/solar-energy\/how-much-do-solar-panels-cost.html\" target=\"_blank\" rel=\"noreferrer noopener\">USD 3.00<\/a>&nbsp;in the U.S. However, the per capita GDP of the U.S. is&nbsp;<a href=\"https:\/\/countryeconomy.com\/countries\/compare\/malaysia\/usa\" target=\"_blank\" rel=\"noreferrer noopener\">over six times<\/a>&nbsp;as large as Malaysia. This makes the real cost of solar installation significantly more expensive in Malaysia.<\/p>\n\n\n\n<p>Improving the domestic supply of locally produced solar PV panels and government tax incentives or subsidies can help drive down these costs and can motivate adopting <em>solar energy in Malaysia<\/em>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-solar-pv-system-in-malaysia-where-should-government-incentives-go\"><strong>Solar PV System in Malaysia: Where Should Government Incentives Go?<\/strong><\/h2>\n\n\n\n<p>Looking at Malaysia\u2019s existing solar PV systems and infrastructure helps determine where government investment should flow.<\/p>\n\n\n\n<p>Currently, Malaysia\u2019s solar energy systems are&nbsp;<a href=\"https:\/\/solarvest.my\/2018\/08\/15\/types-solar-power-systems\" target=\"_blank\" rel=\"noreferrer noopener\">primarily dominated<\/a>&nbsp;by grid-connected systems. Grid-connected systems are directly tied to the local electricity grid, which allows excess energy to be sent back into the power grid for use elsewhere. This is what most urban and utility-scale facilities use.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"630\" src=\"https:\/\/energytracker.asia\/wp-content\/uploads\/2023\/09\/On-Grid-vs-Off-Grid-SOlar.jpg\" alt=\"On-grid vs off-grid solar system design.\" class=\"wp-image-46413\" srcset=\"https:\/\/energytracker.asia\/wp-content\/uploads\/2023\/09\/On-Grid-vs-Off-Grid-SOlar.jpg 1024w, https:\/\/energytracker.asia\/wp-content\/uploads\/2023\/09\/On-Grid-vs-Off-Grid-SOlar-300x185.jpg 300w, https:\/\/energytracker.asia\/wp-content\/uploads\/2023\/09\/On-Grid-vs-Off-Grid-SOlar-768x473.jpg 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source:<a href=\"https:\/\/thesolarlabs.com\/ros\/on-grid-solar-vs-off-grid-solar\/\" target=\"_blank\" rel=\"noreferrer noopener\"> Solar Labs<\/a><\/figcaption><\/figure>\n\n\n\n<p>Hybrid systems also tie into the grid but include a local energy storage system, like a battery. This allows energy to be stored on site for future use. While more expensive than grid-connected systems, they are gaining popularity due to their ability to limit issues with variability in solar electricity generation.<\/p>\n\n\n\n<p>Off-grid systems are the least common but are ideal for rural or remote areas. They are self-contained, including battery storage, but without a grid connection. Energy generated on site is stored and used without running an expensive power line to a far-away grid connection.<\/p>\n\n\n\n<p>It makes sense for government incentives to relate to regional requirements. Urban areas should rely on grid-connected systems, where it is cost-effective to tie into the existing grid. However, Malaysia&#8217;s government support for off-grid systems in remote parts of the country is crucial in decarbonising these regions, like mountainous Borneo or the country\u2019s islands.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-government-investment-in-renewable-energy-is-increasing-but-not-fast-enough\"><strong>Government Investment in Renewable Energy Is Increasing&nbsp;But Not Fast Enough<\/strong><\/h2>\n\n\n\n<p>While solar energy in Malaysia is still in its infancy, there are&nbsp;<a href=\"https:\/\/energytracker.asia\/malaysia-energy-transition\/\" target=\"_blank\" rel=\"noreferrer noopener\">promising signs of growth<\/a>. The government\u2019s commitment to increasing the share of renewable energy is a step in the right direction. Additionally, the government has released several&nbsp;<a href=\"https:\/\/www.mgtc.gov.my\/2023\/02\/budget-2023-more-funds-incentives-for-green-tech-to-meet-net-zero-target-and-sustainability-agenda\/\" target=\"_blank\" rel=\"noreferrer noopener\">incentive programs<\/a>&nbsp;in the last few years, like the Green Investment Tax Allowance (GITA), Green Income Tax Exemption (GITE) and the Green Technology Financing Scheme (GTFS).<\/p>\n\n\n\n<p>However, these programs are only a small step in the larger plan. For solar energy capacity to meet future targets, the government&nbsp;<a href=\"https:\/\/www.reuters.com\/business\/energy\/malaysia-needs-invest-375-bln-renewables-reach-2050-climate-goals-report-2023-03-09\/\" target=\"_blank\" rel=\"noreferrer noopener\">must double<\/a>&nbsp;its planned investment. Solar energy systems are long-term investments that need to begin soon to meet further goals.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Malaysia&#8217;s renewable energy targets heavily rely on expanding its solar energy capacity. Meanwhile, the country is ideally located for large-scale solar adoption. However, government policies still need improvement, and significantly more investment is required to facilitate this transition.<\/p>\n","protected":false},"author":13,"featured_media":46431,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[371,361],"tags":[],"hashtags":[],"class_list":["post-46400","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-case-studies","category-malaysia"],"acf":{"custom_author_name":"","article_pdf_file":{"ID":46419,"id":46419,"title":"Solar Energy in Malaysia_A Bright Future or Dim Prospect","filename":"Solar-Energy-in-Malaysia_A-Bright-Future-or-Dim-Prospect.pdf","filesize":658320,"url":"https:\/\/energytracker.asia\/wp-content\/uploads\/2023\/09\/Solar-Energy-in-Malaysia_A-Bright-Future-or-Dim-Prospect.pdf","link":"https:\/\/energytracker.asia\/solar-energy-in-malaysia\/solar-energy-in-malaysia_a-bright-future-or-dim-prospect\/","alt":"","author":"13","description":"","caption":"","name":"solar-energy-in-malaysia_a-bright-future-or-dim-prospect","status":"inherit","uploaded_to":46400,"date":"2023-09-06 02:42:22","modified":"2023-09-06 02:42:22","menu_order":0,"mime_type":"application\/pdf","type":"application","subtype":"pdf","icon":"https:\/\/energytracker.asia\/wp-includes\/images\/media\/document.png"},"poll_vote":0,"show_in_lastest_from_the_region":"0","order":"","short_desc":"Malaysia's renewable energy targets heavily rely on expanding its solar energy capacity. Meanwhile, the country is ideally located for large-scale solar adoption. However, government policies still need improvement, and significantly more investment is required to facilitate this transition."},"_links":{"self":[{"href":"https:\/\/energytracker.asia\/wp-json\/wp\/v2\/posts\/46400","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/energytracker.asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/energytracker.asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/energytracker.asia\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/energytracker.asia\/wp-json\/wp\/v2\/comments?post=46400"}],"version-history":[{"count":0,"href":"https:\/\/energytracker.asia\/wp-json\/wp\/v2\/posts\/46400\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/energytracker.asia\/wp-json\/wp\/v2\/media\/46431"}],"wp:attachment":[{"href":"https:\/\/energytracker.asia\/wp-json\/wp\/v2\/media?parent=46400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/energytracker.asia\/wp-json\/wp\/v2\/categories?post=46400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/energytracker.asia\/wp-json\/wp\/v2\/tags?post=46400"},{"taxonomy":"hashtags","embeddable":true,"href":"https:\/\/energytracker.asia\/wp-json\/wp\/v2\/hashtags?post=46400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}