As Malaysia approaches the announcement of its 2025 national budget, Solarvest, a leader in clean energy solutions, is advocating for initiatives and incentives to strengthen the country’s renewable energy landscape. These recommendations aim to boost solar energy infrastructure, enhance tax incentives for green technology investments, and foster the adoption of clean energy practices throughout the nation.
Key Recommendations from Solarvest
1. Expansion of Net Energy Metering (NEM) and Self-Consumption (SELCO) Programs
Solarvest emphasizes the need for increased capacity limits by removing existing caps for NEM Rakyat, NEM Gomen, and NEM NOVA programs, while allowing transmission interconnection for SELCO projects. Additionally, the company aims to highlight the green employment opportunities generated by solar photovoltaic (PV) installations, supporting companies in meeting their Environmental, Social, and Governance (ESG) objectives.
2. Incentives for Solar PV Supply Chain Development
To stimulate growth in the solar industry, Solarvest calls for continued tax exemptions and reductions on Sale and Service Tax (SST), as well as import and excise duties for solar PV modules, inverters, charge controllers, and Battery Energy Storage Systems (BESS) through 2029. They also advocate for the reinstatement of the Green Technology Financing Scheme (GTFS), which would provide crucial support for solar energy projects.
3. Support for Residential Solar PV Adoption
To promote residential solar energy, Solarvest suggests a tax relief of up to RM50,000 for solar PV installations, with annual relief of up to RM10,000 over five years. The introduction of interest-free loans for B40 households and interest-subsidized loans for M40 households within the NEM Rakyat Program is also recommended. Furthermore, tax incentives for property developers incorporating solar solutions could stimulate broader adoption.
4. Advancement of Distributed Generation and Grid Enhancement
Solarvest is advocating for smart grid technologies through policies and a proposed RM50 million funding for demand-side management and peer-to-peer energy trading. They also request RM30 billion to enhance grid infrastructure, including electric vehicle (EV) charging networks and BESS support, alongside the extension of tax incentives for EVs and Charge Point Operators.
5. Support for Sustainable Energy Self-Sufficiency
The company emphasizes the importance of training and research funding in the solar sector, proposing RM50 million for solar industry training and research and development initiatives. Additionally, innovative land use programs like Agrivoltaic and Aquavoltaic initiatives can optimize land use and simultaneously boost renewable energy and food production. Local participation in ground-mounted and floating solar PV projects is essential, ensuring majority Malaysian equity.
A Vision for a Low-Carbon Future
Davis Chong Chun Shiong, Executive Director and Group CEO of Solarvest Holdings Berhad, and President of the Malaysian Photovoltaic Industry Association (MPIA), stated, “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 continues its support for green technology investments and introduces more tax incentives to accelerate the adoption of solar energy across the nation.”
As a pioneer in Malaysia’s renewable energy sector, Solarvest is committed to driving innovation and believes that strategic investments and incentives in the upcoming national budget will be pivotal in advancing Malaysia’s energy transition toward a sustainable, low-carbon future.