As of 2023, Malaysia had a total installed solar power capacity of approximately 2.657 GW.⁵

The Malaysian government aims to expand its solar energy capacity to 153 GW by the year 2050.⁶

The average cost of electricity generation in Malaysia varies:⁷

• Hydropower Generation cost: $0.04 to $0.06 per kWh.
• Solar Generation Cost: $0.089 per kWh.
• Coal Generation Cost: $0.06 to $0.09 per kWh.
• Bio Mass Generation Cost: $0.11 per kWh
• Furnace Oil Generation Cost: $0.9 to $0.11 per kWh.
• Natural Gas Generation Cost: $0.07 to $0.11 per kWh.

Malaysia is one of the largest oil and gas producers in the Asia-Pacific region. So, its electricity major portion (97%) comes from thermal generation. As of the latest data, the energy mix in Malaysia is as follows:⁸

• Natural Gas: 36 %
• Coal: 44 %
• Hydropower: 17 %
• Renewable : (Solar & biomass etc): 3%

Urban areas in Malaysia receive an average of 23-24 hours of electricity per day. Rural areas receive around 20-22 hours per day.⁹

The residential solar panel market in Malaysia is growing with approximately 30,000 installations as of 2023.¹⁰

Malaysia currently has 14 operational solar farms and an additional 30 solar farms projected to be developed by 2030.¹¹

The off-grid market demand for solar panels in Malaysia has been witnessing growth due to increasing interest in renewable energy solutions, particularly for remote and under-served areas. Malaysia, being part of the Asia Pacific region, is included in these projections, indicating a growing market for off-grid solar solutions. Exact Off gird capacity is not available through any reliable sources. The Solar Energy market in Malaysia is projected to generate approximately 2.67 billion kilowatt-hours (kWh) of electricity in 2024. By 2029, the volume of solar energy generated is estimated to reach 2.98 billion kWh.¹²

As of August 2023, Malaysia’s solar energy market has reached an installed capacity of 1,492.12 MW from four cycles of the Large Scale Solar (LSS) program, with an additional 949.09 MW yet to become operational. The country has revised its renewable energy target to achieve 70% of installed capacity by 2050, up from a previous goal of 40% by 2040. The market is projected to generate approximately 2.67 billion kilowatt-hours (kWh) of electricity in 2024, increasing to an estimated 2.98 billion kWh by 2029. This growth is expected to be driven primarily by expanding solar panel installations​.¹³

The average salary of workers in the solar industry is as follows:¹⁴

• Electrical Engineer: 833 USD
• Electrician: 583 USD
• Design Engineering Manager: 2917 USD
• Solar Energy System Installer: 583 USD
• Solar Energy / Solar Power Engineer: 1500 USD
• Solar Installation Electrician: 600 USD

The population of Malaysia is approximately 33.4 million as of 2024.¹⁵

Average overhead costs in Malaysia for large scale solar panels vary, with key factors including, Let’s break down the costs for a large-scale solar project based on the provided data:

Raw Material Costs:

Malaysia sources raw materials like silicon, aluminum, and copper both locally and internationally. Prices fluctuate based on global market conditions.

Labor Costs: ¹⁶¹⁴

Malaysia has relatively lower labor costs compared to developed countries. The average labor cost for skilled technicians and factory workers is competitive in the region.

• Minimum Wage: The minimum wage in Malaysia varies by region, typically around per month approximately $347.
• Average Salary: Salaries for professionals in the solar sector, such as engineers and technicians, range from per month approximately $583 to $2917 USD.

Utilities and Energy Costs:

• Electricity Prices: Industrial electricity prices in Malaysia range between 0.047 to $0.123 per kWh³
• Water Charges: Water consumption is metered, with tariffs as $0.48 per m³.¹⁷

Facility Maintenance:

Costs related to maintaining manufacturing facilities, including rent, equipment maintenance, and repairs, are significant. Industrial rent in Malaysia varies, with prime areas like Klang Valley seeing higher rates.

• Rent: Monthly rent for industrial space can range from $0.35 to $0.62 per square feet.¹⁸
• Administrative Expenses: These include salaries for administrative staff, office supplies, and other general expenses. The average monthly salaries for solar energy professionals in administrative roles range approximately $1500 to $2917.¹⁴

¹⁹²⁴Malaysia’s energy infrastructure is characterized by a diverse mix of energy sources, with fossil fuels still playing a dominant role. The country relies heavily on natural gas and coal for electricity generation, which together accounted for about 90% of the total installed capacity. However, Malaysia is making significant strides towards renewable energy, with hydropower currently being the largest source among renewables, followed by solar energy. As of 2023, the country has set ambitious goals to transition to a more sustainable energy mix, aiming for 70% renewable energy capacity by 2050. The government has implemented various initiatives, such as the Large Scale Solar (LSS) program, to encourage the adoption of solar power, which has a projected potential of 269 GW. Despite challenges like the need for substantial investment and a regulatory environment still under development, Malaysia’s commitment to renewable energy is evident through its increasing solar PV installations and plans to harness bioenergy and other green technologies.

Malaysia’s energy infrastructure is a complex system that generates, transmits, and distributes energy to meet the country’s growing demand. The energy mix consists of thermal power plants, hydroelectric power plants, and renewable energy sources. The transmission network, operated by Tenaga Nasional Berhad (TNB), spans over 20,000 km, with high-voltage transmission lines and substations. The distribution network, managed by TNB, Sabah Electricity Sdn Bhd (SESB), and Sarawak Energy Berhad (SEB), delivers energy to consumers through medium-voltage and low-voltage distribution lines.

Approximately 90% of Malaysia’s electricity is currently generated from fossil fuel-fired power stations, primarily coal and natural gas. As electricity demand continues to rise annually, the Malaysian government is planning to reform the power sector, with a focus on further developing its abundant hydropower resources. Solar power plants are spread across Peninsular Malaysia, with installed capacities ranging from 18 to 66 MW. In addition to solar energy, Malaysia is actively developing its bioenergy sector, particularly in biogas and biodiesel production.

According to the National Energy Policy Plan, Malaysia aims to achieve carbon neutrality and have 70% of its energy mix come from renewable sources by 2050. This ambitious goal will require more than a tenfold increase in renewable energy capacity from 2023 levels. The country has also set an interim target of reaching 40% renewable energy in its energy mix by 2035.

Following are the regulation surrounding solar panel generation:²⁰

• Renewable Energy Act 2011: This Act promotes renewable energy sources, including solar energy, and provides a framework for the development of the industry.
• Feed-in Tariff (FiT) scheme: This scheme requires Tenaga Nasional Berhad (TNB), the national utility company, to purchase renewable energy from generators at a fixed tariff rate.
• Net Energy Metering (NEM) scheme: This scheme allows consumers to generate solar energy and offset their energy bills, with excess energy sold back to the grid.
• Large-Scale Solar (LSS) program: This program sets out the framework for the development of large-scale solar projects, including the bidding process and project requirements.
• Electricity Regulations 1994: These regulations govern the connection of solar PV systems to the grid.
• Grid Connection Guidelines: These guidelines outline the technical requirements for connecting solar PV systems to the grid.
• Sustainable Energy Development Authority (SEDA) Act 2011: This Act establishes SEDA as the governing body for renewable energy in Malaysia.

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• Green Investment Tax Allowance (GITA): Offers tax incentives, enabling businesses to save up to 48% on solar system installation costs.
• National Renewable Energy Policy and Action Plan (2010): aims to increase renewable energy share to 20% by 2025.
• Feed-in Tariff (FiT) scheme (2011): encourages individuals and companies to generate renewable energy, including solar.
• Net Energy Metering (NEM) scheme (2016): allows consumers to generate solar energy and offset their energy bills.
• Large-Scale Solar (LSS) program (2016): develops large-scale solar projects through competitive bidding.
• Solar Leasing Program (2019): enables individuals and companies to install solar panels with minimal upfront costs.
• Green Technology Financing Scheme (GTFS): provides financing incentives for renewable energy projects, including solar.
• Tax incentives: offers tax exemptions, investment tax allowances, and grants for renewable energy projects.

These initiatives aim to increase solar energy adoption, reduce greenhouse gas emissions, and achieve the country’s renewable energy targets.

Notable solar projects in Malaysia are as follows²²²⁵

ENGIE TTL Kerian Solar PV Park

• Installed Capacity: 136 MW
• Location: Perak

Suria Sungai Petani Solar PV Park

• Installed Capacity: 116 MW
• Location: Kedah

Ib Vogt Coara Marang Solar PV Park

• Installed Capacity: 116 MW
• Location: Terengganu

Tenaga Nasional Berhad (TNB) Solar Park:

• Installed Capacity: 78 MW
• Location: Selangor

Cypark Resources Berhad Solar Plant:

• Installed Capacity: 60 MW
• Location: (Multiple Units at various Locations)

LSS1 Solar Farm:

• Installed Capacity: 50 MW
• Location: Kedah

LSS2 Solar Farm:

• Installed Capacity: 30 MW
• Location: Pahang

Projected Solar Projects

LSS5 Solar Projects

• Capacity: 500 MW (Expansion)
• Location:(Pahang, Perak, Kedah, Penang, Selangor)

Pahang Solar Project

• Capacity: 150 MW
• Location: Pahang

Kuantan Solar Project

• Capacity: 100 MW
• Location: Pahang

Malaysia’s largest solar farm

• Capacity: 300 MW  (expansion)
• Location: Kedah

Here are some notable solar companies in Malaysia, along with references to their contributions to the solar energy sector:²³

• Brilliant Solar: Known for innovative and efficient solar solutions, Brilliant Solar offers a range of services including residential, commercial, and industrial solar installations.
• GSPARX: A subsidiary of Tenaga Nasional Berhad, GSPARX focuses on providing solar PV systems for various sectors, including factories, small businesses, and residential properties. They emphasize accessibility and affordability.
• ITRAMAS: Specializes in renewable energy solutions, particularly large-scale solar projects. They have a reputation for high-quality engineering and project management services.
• Next Energy: Offers comprehensive solar solutions with a focus on sustainable energy and technology-driven innovations. They cater to both commercial and residential markets.
• Plus Xnergy: One of Malaysia’s largest solar companies, Plus Xnergy (formerly Plus Solar) has a significant presence in the market with over 700 projects. They focus on reducing carbon emissions through large-scale solar installations.
• Progressture Solar: Specializes in rooftop solar PV systems for commercial, industrial, and residential buildings. They offer a comprehensive service that includes consultation, installation, and maintenance.
• SolarVest: A leading player in the solar industry, SolarVest provides a wide range of solar services, including engineering, procurement, and construction (EPC) for solar PV systems.
• United Solar Energy: Offers solar solutions with an emphasis on quality and customer service. They provide installations for both residential and commercial sectors.
• Verdant Solar: Known for their innovative approach, Verdant Solar offers a range of services from consultation to installation, with a strong focus on sustainability and efficiency.