Northern Solar, a leading Malaysian solar energy provider, has announced impressive financial results, reporting a 40% year-on-year revenue growth for the first half of the fiscal year 2026 (1HFY2026). Revenue reached RM56.2 million, while its profit after tax (PAT) rose by 8.6% to RM8.1 million, driven by strong momentum in its Engineering, Procurement, Construction, and Commissioning (EPCC) projects.
Strong EPCC Momentum Drives Malaysia solar revenue growth
Northern Solar’s substantial revenue growth is a direct result of expanding its solar energy services to new industrial clients. The company’s focus on providing comprehensive EPCC solutions for large-scale industrial projects has been a key factor in its success. This strategic focus is reflected in a healthy gross profit margin of 34.0%, indicating stable pricing and disciplined cost control.
The company’s strong performance is part of a larger growth trajectory, which has been supported by strategic financial planning, including its successful listing. The initial public offering for Northern Solar Holdings Bhd has been instrumental in funding the expansion required to meet the rising demand for solar energy in the region.
Capitalizing on Malaysia’s Solar Supercycle for Malaysia solar revenue growth
Northern Solar is strategically positioned to capitalize on what experts are calling Malaysia’s “five-year solar supercycle,” expected to run from 2025 to 2029. This growth period is fueled by several factors, including cyclically low solar panel prices—which improve the economics of the basics of solar panel manufacturing and installation—and a massive pipeline of government-backed projects like the Large Scale Solar (LSS) schemes, valued at an estimated RM15–18 billion.
These large-scale initiatives are transforming the country’s energy landscape, with projects like a landmark Malaysian solar plant demonstrating the scale of development. By securing a robust order book, Northern Solar is on track to play a significant role in this national energy transition.
Northern Solar Contributes to Malaysia’s Ambitious Energy Goals and Malaysia solar revenue growth
Northern Solar’s success is perfectly aligned with Malaysia’s increasingly ambitious renewable energy targets. The nation has set a goal to achieve a 70% renewable energy mix by 2050, with an interim target of 40% by 2035. The goals for Malaysia solar energy are central to this vision, as solar already accounts for over 90% of the country’s total installed renewable capacity.
The economic case for this transition is just as compelling as the environmental one. Recent analysis shows that solar farms 54x more profitable than palm oil in Malaysia, highlighting a powerful financial incentive for land use diversification. By providing clean energy solutions to industrial clients, Northern Solar not only helps reduce greenhouse gas emissions but also contributes to a more profitable and sustainable future for Malaysia.
Continued Malaysia solar revenue growth and Expansion Ahead
As Northern Solar continues to secure new contracts and expand its client base, the company is well-positioned to maintain its growth momentum. According to Managing Director Mr. Lew Shoong Kai, the company’s strengthened financial position, rising order book, and integrated solar plus battery energy storage system (BESS) capabilities are key advantages for capturing future opportunities.
With a strong focus on industrial solar projects, Northern Solar is set to be a key player in Malaysia’s clean energy future. The company’s expertise spans the entire project lifecycle, from understanding solar panel raw materials to deploying advanced installation techniques. This comprehensive approach, supported by a robust Malaysia solar panel manufacturing ecosystem, ensures the company is poised for continued success in the years to come.
To learn more about the intricacies of bringing solar projects to life, from initial costs to final production, explore our free e-course on solar panel manufacturing.
