Malaysia Solar Energy Capacity Growth
Malaysia has significantly increased its solar energy capacity, with solar now representing 92% of the country’s total installed renewable capacity. This impressive growth aligns with global trends, as highlighted by the recent surge in UK solar power capacity [https://www.pvknowhow.com/news/uk-solar-power-growth-stunning-32-surge-in-2025/]. In 2023, solar power accounted for 2.6% of Malaysia’s total power generation, providing 2,680 MW of capacity, a substantial increase from 1,177 MW in 2022. This growth trajectory is further underscored by projects like the 9 MW Venezia Solar Project in Chile [https://www.pvknowhow.com/news/venezia-solar-project-stunning-9-mw-power-launch/], demonstrating the global momentum in solar energy adoption.
The Malaysian government has set ambitious targets of 31% renewable energy by 2025 and 40% by 2035. To achieve these goals, the government has implemented various policies and incentives to stimulate growth in the renewable energy sector.
The Energy Commission (ST) has introduced several key programs to support solar energy adoption, including:
- Net Energy Metering (NEM) scheme: This scheme allows consumers to install solar photovoltaic (PV) systems and sell excess energy back to the grid. Surplus energy is credited to the following billing cycle, offsetting future consumption costs. Unused credits are forfeited at the end of the contract year.
- Self-Consumption (SELCO) scheme: This program encourages the direct use of generated solar power by consumers, reducing reliance on the grid.
- Large Scale Solar (LSS) program: The LSS program focuses on developing large-scale solar projects to contribute significantly to the national energy mix.
- Corporate Green Power Programme (CGPP): This program incentivizes corporate investment in renewable energy projects, fostering private sector participation in the transition to cleaner energy sources.
Wind and Biomass Energy in Malaysia Solar Energy Mix
While solar energy dominates Malaysia’s renewable energy landscape, other technologies like wind and biomass also contribute to the energy mix. In 2023, wind energy accounted for 0.2% and biomass for 0.1% of Malaysia’s total power generation.
The Malaysian government’s commitment to its 31% renewable energy target by 2025 and 40% by 2035 is reinforced by initiatives like the Feed-in Tariff (FiT) scheme. This scheme guarantees a fixed price for electricity generated from renewable sources for a specific period, providing investors with price certainty and encouraging investment. Since its inception in 2011, the FiT scheme has attracted over RM5 billion (US$1.2 billion) in investment, according to the Energy Commission.
Malaysia Solar Energy: Challenges and Future Outlook
Despite the rapid growth of renewable energy in Malaysia, challenges persist. The intermittency of renewable sources, like solar and wind, can create fluctuations in power supply. To address this, the government is investing in energy storage solutions, such as batteries and pumped hydro storage. Another hurdle is the existing grid infrastructure, which requires upgrades to effectively integrate the growing share of renewable energy.
Despite these challenges, the future of renewable energy in Malaysia is bright. Continued government support, coupled with strategic investments, positions Malaysia to achieve its renewable energy targets and reduce its dependence on fossil fuels. The sector’s growth is also expected to generate over 52,000 jobs by 2025, according to the Ministry of Energy and Natural Resources.
The Malaysian government has identified renewable energy as a key driver of economic growth and job creation. Various incentives, including tax exemptions and grants, are designed to attract further investment in the sector.
Malaysia’s progress in renewable energy, particularly in solar, is noteworthy. With solar capacity reaching 2,680 MW and contributing 2.6% to total power generation, the country is steadily advancing towards its ambitious renewable energy goals. This progress, combined with ongoing government support and investment, positions Malaysia to become a regional leader in the renewable energy sector.
