How Solar Companies are Transforming Malaysia’s Energy Landscape

Malaysia, a charming country in Southeast Asia that holds the beauty of nature and rich cultural heritage, has taken a significant turn with respect to its energy landscape. The test is the same for Malaysia like the rest of the world which is meeting the hike in demand for energy while playing a part in reducing the carbon emissions of the country.

The journey of Malaysia to the future of solar is the combination of efforts of the government, improvement, and advancements in technology. The contribution of solar companies are not only involved in fixing up the panels of solar on the surfaces but also the ones who play a major role in sharpening the energy landscape of the country.

Now, we are going to discuss the impact of the solar companies and also mention the challenges faced by them and the solutions that can be considered to ensure the safe and healthy existence of the solar industry in the country. Also, the future is discussed along with that, the upcoming chances of growth, the position of solar in Malaysia’s energy goals, and the trends and advancements in technology will be discussed.

Why Are Solar Companies Important for Malaysia’s Energy Future?

Malaysia is the sunniest tropical country and is able to enjoy constant irradiation throughout the year. However, the country’s energy glide path was relatively slow moving due to an overdependence on coal and gas which made up approx. 90% of Malaysia’s power generation. The breakneck pace at which climate change was occurring, led to the need to switch over to a more diversified energy mix, thereby catapulting the solar companies into the limelight.

What Role Do Solar Panels Play in This Transformation?

Solar panels, the essential instruments of solar companies, are the building block of Malaysia’s energy’ metamorphosis. These panels are constructed from a collection of photovoltaic cells which are constructed to harness the solar light and turn it into electrical current. In simple terms, solar panels capture sunlight and turn it into electricity.

The Growth of Solar Companies in Malaysia

In the past decade, there has been a steep rise in the number of solar companies operating in Malaysia, that are responsible for the manufacturing, installation, and maintenance of these products. These resources are indispensable players in addition to the green sector.

What Are Solar Companies Bringing to Malaysia?

Solar companies have been instrumental in introducing a green revolution in Malaysia. Their use of solar panels to harness the abundant sunlight has raised several questions:

How do Solar Panels Work?

We have mentioned that solar cells are utilized for the capture of solar energy. But how do they work? Solar panels hold the key to the resourcefulness of solar energy. They transmogrify light from the sun into electricity, in order to function under the principle of photovoltaic effect. The question that remains is how does this conversion come about? Energy absorption is carried out, with the help of cells that compose solar panels, from the sunlight and aim to catalyze such energy in order to form an electric current.

Why Solar Panels in Malaysia?

Malaysia is located 3.13 degrees north of the equator, and this keeps it in good stead to take advantage of a year-round sun. This helps lead to the classification of Malaysia as a nation that is ideal for the exploitation of solar energy. On average in Malaysia there are 5-6 hours of sunlight per day.

How Are Solar Companies Impacting Malaysia’s Energy Landscape?

1. Expanding Renewable Energy Sources

One of the most significant contributions by any list of solar companies in Malaysia is the increase of renewable energy sources. As any solar company keeps installing panels on residential homes and commercial rooftops around Malaysia a huge percent of the energy that has been created by these panels is clean and green, and not dependent on oil or any other type of natural gas. Thus, the wider green energy utilization the less consequence there would be on the environment.

2. Reducing Energy Bills

The expense of electricity is very high in Malaysia. Items like AC, refrigerators, etc., are increasing every day and so are the bills for electricity. But, solar power will help to solve this problem. Solar companies have brought down financing schemes that will help people who have a low income to have solar panels placed over their houses. Then, you are your power framework. Just use your money wisely in investing in solar panels and you can cut on your electricity bills and enjoy a happy standard of living.

3. Offering Job Opportunities

An Increase in investments in solar in Malaysia has created a variety of job opportunities. Solar companies offer different jobs related to solar energy, from installation technicians to high-paying sales and marketing, and remain with bigger gains than conventional energy]

4. Contribution to Sustainable Development

Solar companies also contribute to a part of true development based on sustainability in Malaysia. Malaysia is already ranked in the top countries with the level of books warm in the atmosphere. Taking solar energy can help you eliminate air pollution, also requires a small amount of water compared to other distributed energy generation. Moreover, solar energy contributes in a big manner to reducing the negative environmental impacts associated with fossil. energy.

Government Initiatives to Support Solar Energy

In support of the industry, there are several government programs and incentives initiated by the government of Malaysia as follows:

Feed-in Tariffs (FiT)
The FiT regime is one of the most significant incentives. It guarantees developers a fixed price for the solar energy fed into the grid, removing the risk of gaining a low return on investment through the sales of electricity. This attractive financial security for solar panel owners also increases the number of people and companies that invest in solar energy.

Net Energy Metering (NEM)

NEM allows customers with solar panels to offset their electricity bills by exporting extra energy to the grid. Additional power generated by solar panels at home or in businesses is channeled back to the grid. Households or companies that have NEM can then claim on any excess produced, reducing bills significantly. This program has made solar energy even more affordable to customers.

Tax incentives

The government offers several tax incentives as follows:
– Green Investment Tax Allowance (ITA)
– Green Income Tax Allowance (GITA)
– Labuan facilities
– Green Indirect Tax Incentives

All solar installations companies and individuals have the opportunity to apply for all four tax incentive programs for solar installations, and the solar industry, overall, has benefited greatly from this.

As more companies pursue solar power, certain obstacles will have to be overcome:

Intermittent Energy Source

Solar power generation is an intermittent energy source since sunlight is only available during daylight hours. For solar power to become a justifiable, large-scale power source, considerable energy storage must be able to rotate the continuity of solar power day and night.

Positioning Solar Panels for Optimal Production

Many individuals are not aware that it isn’t always best to install solar panels on roofs that face south. To maximize peak production and have a flat energy output curve, solar panels should be pointed directly at the equator. There are other factors such as installing on a different side of the house, and not shadowing the panels from obstructions such as trees can all play a factor in solar panel output.

Initial Costs

The cost of managing solar power once established is relatively low. However, the initial investment is what scares many of those considering solar power away. Similar to the price most electricity companies charge, their service hook-up fee has a median range from $500 to $2000 for service connection. With the average installation being around 4.5KW, any value in between the median range is about a three-year return on their investment.

Grid Integration

The key to successfully transitioning to a solar-based and smart networked grid is all in the planning stages of where solar facilities will be constructed and the investment built-in infrastructure they will be connected to.

What Is the Future of Solar Energy in Malaysia?

Malaysia has a bright future in the solar energy sphere with public policy strongly committed to renewable energy, and solar energy industries have seen strong growth in the past year. As technology advances and economies of scale continue to drive down the costs of solar, its benefits will be further recognized by society and the energy system penetration will increase.

Final Thoughts

Pensolar is honored to be part of the solar revolution going on in Malaysia. The energy industry in Malaysia is changing at an incredible pace, and Pensolar is one of the players who accelerated this transformation in solar energy. Our overall mission is to promote renewable energies, to be at the front door of solar energy penetration into mainstream by getting people not to pay for electricity anymore, and make solar energy create jobs and the development of a cleaner Malaysia is feasible.

We are proud to be part of an energy movement within Malaysia, that not only changes the image of the Malaysian Energy Industry climatically but will as well bring a greener and cleaner tomorrow to Malaysia. Our commitment to quality work allowed us to work closely with well-known government initiatives such as FiT and Net Energy Metering (NEM), which made solar energy an attractive and easy enough choice for every Malaysian by helping them.