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As Malaysia approaches the announcement of its 2025 national budget, Solarvest, a leader in the clean energy sector, has presented a comprehensive outlook aimed at strengthening the nation’s renewable energy landscape. The company emphasizes the need for initiatives and incentives to promote solar energy infrastructure and accelerate the adoption of clean energy practices throughout the country.
Key Recommendations from Solarvest’s Desired Outlook:
Expansion of Net Energy Metering (NEM) and Self-Consumption (SELCO) Programs
Increased Capacity Limits: Solarvest advocates for the removal of capacity caps for NEM Rakyat, NEM Gomen, and NEM NOVA, along with enabling transmission interconnection for SELCO projects.
Green Employment Creation: The organization highlights the potential for job creation through solar PV installations and encourages support for companies striving to meet Environmental, Social, and Governance (ESG) goals.
Incentives for Solar PV Supply Chain Development
Tax Exemption and Reductions: Solarvest calls for the continuation and expansion of Sales and Service Tax (SST) exemptions, along with reductions in import and excise duties for solar PV modules, inverters, charge controllers, and Battery Energy Storage Systems (BESS) through 2029.
Reinstatement of the Green Technology Financing Scheme (GTFS): The revival of this scheme is requested to support solar energy projects and enhance accessibility.
Support for Residential Solar PV Adoption
Tax Relief for Installation: Solarvest proposes a tax relief of up to RM50,000 for solar PV installations, with annual relief of up to RM10,000 over five years.
Interest-Free Loans: The introduction of interest-free loans for B40 households and interest-subsidized loans for M40 households in the NEM Rakyat Program is also recommended.
Tax Incentives for Developers: Offering tax incentives such as Green Investment Tax Allowance and Green Income Tax Exemption for property developers incorporating solar energy solutions.
Advancement of Distributed Generation and Grid Enhancement
Smart Grid Technologies: The organization advocates for policies and RM50 million in funding for demand-side management and peer-to-peer energy trading.
Grid Infrastructure Upgrade: A request for RM30 billion to improve grid infrastructure, expand EV charging networks, and support BESS is included.
Tax Incentives for EVs: Solarvest suggests extending tax incentives for electric vehicles and EV Charge Point Operators.
Support for Sustainable Energy Self-Sufficiency
Training and RDI Funding: A request for RM50 million for solar industry training and research, alongside funds for grid stability studies, is made.
Innovative Land Use Programs: The proposal includes Agrivoltaic and Aquavoltaic programs to optimize land use and enhance renewable energy and food production.
Local Participation: Solarvest aims to ensure local involvement in ground-mounted and floating solar PV projects for SELCO, promoting projects with majority Malaysian equity.
Davis Chong Chun Shiong, Executive Director and Group Chief Executive Officer of Solarvest Holdings Berhad and President of the Malaysian Photovoltaic Industry Association (MPIA), expressed optimism for Malaysia’s renewable energy potential. He stated, “As we look ahead to the 2025 budget, we hope the government will continue its support for green technology investments and introduce more tax incentives to accelerate the adoption of solar energy across the nation.”
As a key player in Malaysia’s renewable energy sector, Solarvest remains committed to driving innovation in clean energy. The company believes that strategic investments and incentives in the upcoming national budget will be crucial for accelerating Malaysia’s transition to a low-carbon future. |
