solar panels on roof

Solar Panel Loans and Incentives for Homeowners in Malaysia

/0 Comments/in , /by

If you are considering investing in a solar panel system to lower electricity bills, you are on the right track. However, as you may already know, they can be expensive.

The good news is that in Malaysia, the government and utility companies such as Tenaga Nasional Berhad offer programs and incentives for switching to solar power systems.

All of these programs and incentives were created for solar panel manufacturers, and users who use solar energy in Malaysia.

Solar Energy Incentives

1. Feed-in Tariff

Since 2011, Feed-in Tariff is available in Malaysia to increase investment in renewable energy sources.

So, what exactly is Feed-in Tariff?

Malaysia’s Feed-in Tariff system grants you the opportunity to sell your energy produced using solar system to the utility grid (TNB) at a premium rate.

And the great thing about it is that it guarantees investment returns as the government offers long-term agreement up to 21 years wherein you will be paid an amount for the energy you generated.

So the next question is, who can apply the feed-in tariff?

Anyone, including private investors, business owners, homeowners or farmers.

Feed in Tariff and SEDA logo

2. Tax Exemption

Green Income Tax Exemption – GITE (Services)

For Renewable Energy, Energy Efficiency, Green Building, Green Data Centre, Green Township, Certification/Verification Bodies and Electric Vehicles (EV), tax exemption is applicable for 100% of statutory income from the year of assessment where the date of application received by MIDA until the year 2023.

Companies undertaking solar leasing activities will enjoy a 70% income tax exemption of up to 10 years.

Eligibility

Green Income Tax Exemption given to qualifying companies which provides green technology services which have been verified by GreenTech Malaysia and been listed under the MyHIJAU Directory.

For a company which undertakes green technology services activities, the company must meet the criteria of green technology service providers as follows:

  • At least one competent/qualified personnel in the respective green technology;
  • Must have a green policy related to the environmental or sustainability; and
  • 100% income must be derived from the respective green technology services.

Note :
• Competent personnel are defined as holding a certificate of competency as a service provider in the related field of green technology. The certificate must be recognised by the Government or a Professional Body in Malaysia.
• Green Policy is a statement about the commitment to sustainability and environment management by the company.

The application must be submitted to MIDA before 31 December 2020.

Full guidelines can refer to https://www.myhijau.my/wp-content/uploads/2019/05/Guidelines-for-Green-Technology-Tax-Incentive-Rev.1-March-2019.pdf

Green Investment Tax Allowance – GITA (Project)

The following — Renewable Energy, Energy Efficiency, Green Building, Green Data Centre and Integrated Waste Management Activity — will be eligible to GITA Investment Tax Allowance (GITA) of 100% of qualifying capital expenditure (QCE) incurred from the date of application received by MIDA until the year 2023.

Eligibility

Companies which undertakes a qualifying green technology project and complying ALL of the following criteria:-

  • minimise the degradation of the environment or reduce greenhouse emission;
  • promotes health and improvement of environment; and
  • conserves the use of energy, water and/or other forms of natural resources or promote the use of renewable energy or able to recycle waste material resources.

Applicable for applications received by MIDA between 25 October 2013 to 31 December 2020.
Projects must obtain a Conditional Approval Letter from MIDA.

Full guidelines can refer to https://www.myhijau.my/wp-content/uploads/2019/05/Guidelines-for-Green-Technology-Tax-Incentive-Rev.1-March-2019.pdf

solar farm

Solar Panels Loans

Solar panels can be expensive but they are worth it. Many homeowners use personal loans to buy solar panels for their homes. Besides personal loans, there are other options you should take into consideration to see if they are a better deal for you.

1. Lenders

As having a solar panel system in Malaysia can be considered a part of home improvement, some lenders are willing to offer a solar loan to raise the value of the property.

2. Home Equity Line Of Credit

Here you use your home to secure a line of credit. The best way to use it is by borrowing only what you need to install your solar panel system, repay it, and you can borrow again later if you need to.

3. Home Equity Loan

With this type of loan, you use the value of your home as collateral. In most cases, you can borrow 100% of your equity up to 80% of the appraised value of your home.

4. Saving

If you are planning to buy a new solar panel system, the best way to do it is by using your own savings. While saving for your future home, factor in the investment you need to install a solar system. With this, repayment is not necessary, and you will receive the incentives free and clear.

 

Takeaways

Keep in mind, that there are many options to choose from, if you are looking to buy and install a solar panel system in your home, including taking out a personal loan or paying cash. Expect to see immediate returns on your investment by saving money on your utility bills.

Before making any decision, make sure to check out all the options available to find the best rates and loan terms. It is important to compare the personal loans available from all lenders, including those offered by solar panel Malaysia suppliers.

hitting the renewable energy target

Protected: Hitting Renewable Energy Target In Malaysia

/Enter your password to view comments./in , /by

This content is password protected. To view it please enter your password below:

SOLARVESTxUOB

Solarvest & UOB Teaming Up to Promote Solar Energy

/0 Comments/in , , /by

Solar photovoltaic (“PV”) system specialist, Solarvest Holdings Berhad (“Solarvest” or the “Group”) and United Overseas Bank (Malaysia) Berhad (“UOB”) are teaming up for an upcoming collaboration to encourage the use of green energy, in particular solar photovoltaic (“PV”), amongst the commercial, industrial and residential segments.

Announcing this at the 10th International Greentech & Eco Products Exhibition & Conference Malaysia (“iGEM 2019”), Solarvest and UOB will enter into a formal partnership to create more awareness campaigns and nationwide roadshows to promote the benefits of green energy, in particular solar photovoltaic (“PV”).

In addition, the collaboration will also look into developing customized financing solutions that cater to various user segments.

Group Chief Executive Officer of Solarvest, Mr. Davis Chong Chun Shiong (张俊雄) said, “At Solarvest, we offer end-to-end solutions of solar PV systems from design all the way to installation and maintenance. This provides our customers with a seamless process to start using solar PV energy. By teaming up with UOB to provide customized financing solutions, this will further encourage the use of solar PV energy as the initial investment cost is reduced.”

YB Yep signed Solar Panel representing SolarvestxUOB

Solarvest and UOB had previously worked together in July 2019 to jointly sponsor an event organized by Malaysian Investment Development Authority (“MIDA”) in Kuantan, Pahang which attracted close to 100 attendees. At the event, MIDA’s Green Technology Division provided policy updates and incentives available for those interested in green energy.

Recently, UOB also partnered with Solarvest for series of roadshows such as the Malaysian Photovoltaic Industry Association’s National Solar Roadshow held in Johor Bahru in September 2019 to educate and encourage the uptake of solar PV installations on commercial and industrial rooftops.

“This is one of the many strategic plans we have in our pipeline as we strive to fill the gaps in the industry. We will continue to explore for more partnership opportunities to drive adoption of solar energy and be at the forefront of this growing industry,” he added.

These initiatives are aimed to support the Malaysian Government’s goal of achieving 20 percent electricity generation from renewable energy sources by 2025.

Source: https://bit.ly/2IQHNSW

Solarvest-ProspectusLaunch

Solarvest to Raise RM34.6 million from IPO

/0 Comments/in , , /by

Solar photovoltaic system specialist, Solarvest Holdings Berhad (“Solarvest” or the “Group”), has successfully launched its prospectus in conjunction with its initial public offering (“IPO”) on the ACE Market of Bursa Malaysia Securities Berhad (“Bursa Securities”).

The launching ceremony was graced by YB Yeo Bee Yin, Minister of Energy, Science, Technology, Environment and Climate Change (“MESTECC”) with Dr. Chen Wei-Nee, Chief Strategy Officer of SEDA Malaysia in attendance.

Solarvest specialises in turnkey engineering, procurement, construction and commissioning (“EPCC”) services for solar photovoltaic (“solar PV”) systems. The Group has completed solar PV systems for Large Scale Solar Photovoltaic (“LSSPV”) plants as well as residential, commercial and industrial properties.

Its services cover the entire process of a solar PV project from the initial site study and assessment, design and procurement of components and modules, to system installation and commissioning. The Group also provides operations and maintenance services of solar PV systems.

Group Chief Executive Officer of Solarvest, Mr. Davis Chong Chun Shiong (张俊雄) said, “The event symbolizes a significant milestone for Solarvest as we en route to list on the local bourse. It is an opportune time for the Group to stay at the forefront to reap the promising growth of the renewable energy industry and emergence of new market opportunities.”

Earlier in his speech, Davis said that the Malaysian solar sector is experiencing an expansionary phase and there are increasing levels of interest in solar. The take-up rates of the Net Energy Metering programme and Large-Scale Solar PV (“LSSPV”) programme have seen encouraging growth amongst commercial and industrial users as well as large investors.

The outlook of the solar industry is further enhanced by the strong support from the local government, whereby various policies and programmes were implemented to accelerate investment shifts towards renewable energy.

According to Independent Market Researcher, Protégé Associates Sdn Bhd, the total solar PV installed capacity in Malaysia is set to grow at a compound annual growth rate of 50% during the period of 2018 to 2023, he added.

“The upward growth trajectory of the renewable energy industry in Malaysia will undoubtedly provide Solarvest new growth opportunities, especially in the LSSPV segments. In addition to that, all solar contractors for engineering, construction and commissioning of Large-Scale Solar 3 (LSS 3) projects are now required to be 100% local. Malaysian solar contractors, including Solarvest, stand poised to benefit from this positive development,” he further added.

The Group is optimistic that the listing exercise will position Solarvest to better harness the rising market opportunities in the solar sector, as well as enabling it to gain access into the capital markets for its future growth.

Solarvest will be raising approximately RM34.6 million from its IPO, of which RM19.2 million or 55.5% will be utilised for the Group’s working capital for daily operations and future projects.

RM3.0 million or 8.7% will be for its geographical expansion in the domestic and international markets. Locally, the Group will spread its footprint in the Southern region of Peninsular Malaysia, pursuing business opportunities in Negeri Sembilan, Melaka and Johor. Beyond Malaysia, Solarvest plans to enter into new markets, namely Vietnam and Taiwan.

Moreover, the Group will channel some of the proceeds to enhance its technical capabilities, which includes acquiring new project machinery and equipment as well as upgrade its information technology (“IT”) software and hardware (RM4.0 million or 11.5%). The remaining of the IPO proceeds will be used for repayment of bank borrowings (RM5.0 million or 14.5%) and listing expenses (RM3.4 million or 9.8%).

The IPO entails a public issue of 98,828,000 new shares in the Group, representing 25.3% of its enlarged share capital at an issue price of RM0.35 per share in the following manner:-

  • 19,531,000 new shares available for the Malaysian public;
  • 19,531,000 new shares available for application by eligible Directors, employees and persons who have contributed to the success of Solarvest;
  • 39,063,000 new shares by way of private placement to Bumiputera investors approved by the Ministry of International Trade and Industry, Malaysia (“MITI”);
  • 20,703,000 new shares by way of private placement to selected investors.

Upon listing on the ACE Market, Solarvest will have market capitalisation of RM136.7 million based on the issue price of RM0.35 and its enlarged share capital of 390.6 million shares.

Pursuant to the launch of Solarvest’s prospectus, applications for the Public Issue are open today and will close on Monday, 11 November 2019 at 5.00 p.m. Solarvest is slated to be listed on the ACE Market of Bursa Securities on Tuesday, 26 November 2019.

M&A Securities Sdn Bhd is the adviser, sponsor, underwriter and placement agent for the IPO exercise.

Solarvest is 45.0% owned by Main Market listed, Chin Hin Group Berhad (“Chin Hin”). Upon completion of the IPO, Chin Hin’s shareholding will be approximately 33.6%.

Source: Focus Malaysia

Solarvest solar panel at Jalan Mega, Pahang with 8kW

The Latest Development in Solar Technology and How It Will Change the World

/0 Comments/in , /by

As we know, solar energy is a renewable energy source that produces clean energy because it doesn’t produce CO2 emissions or other harmful gases. The solar power system has improved leaps and bounds since the beginning.

The latest development in solar technology has placed the industry for growth. Also worth mentioning is the recent development in solar photovoltaics technology, which has contributed to the industry’s success.

In Malaysia, solar power system looks very bright as the Government has implemented a national power generation programme to boost solar energy capacity. The solar industry in Malaysia is used for solar thermal applications and PV technologies.

Solar thermal applications are where heat from solar energy is used for heating purposes, while PV technologies are for electricity generation.

This blog post will give you a good idea on the advances in PV technology.

 

Advances in Solar Technology

Solar Cells

Scientists are always looking for ways to improve the efficiency and cost-effectiveness of solar cells, which are responsible for converting sunlight to electricity. A solar PV array is made up of hundreds or even thousands of solar cells.

The downside of solar cells is that 85% of the sunlight that gets to them does not become electricity. As such, researchers are looking at how to boost the light capture and conversion.

 

Light Sensitive Nanoparticles

Lately, a group of scientists at the University of Toronto developed a new type of light-sensitive nanoparticle called colloidal quantum dots. This new technology is believed to be less expensive and more flexible material for solar cells.

The good news is that these new materials use n-type and p-type semiconductors that can work outdoors, giving a practical application for the solar industry.

Solar panels that have used this new technology could convert 8% more sunlight.

 

Gallium Arsenide

At Imperial College, London, researchers have discovered a new material called gallium arsenide. This new material is believed to make solar PV systems three times more efficient.

The solar cells called “triple junction cells” can be chemically changed in a manner that optimizes sunlight capture, making them much more efficient. Because the model uses a sensor-driven window blind, it is capable of tracking sunlight along with light pipes, guiding the light into the system.

 

Energy Storage

As the solar power systems continue to develop, scientists are paying more attention to finding new ways to store energy produced by solar PV systems.

Today, electricity produced by a solar PV system must be used immediately or be lost.

Although there are several batteries on the market that can store this energy, they are not efficient, plus they are expensive and have a pretty short shelf life. Because of these issues, they are still not a good option for utility companies and consumers.

 

Molten Salt Storage Technology

Novatec Solar is a company that has recently commissioned a promising energy storage solution for solar PV systems using a molten salt storage technology.

The molten salt storage technology uses inorganic salts to transfer energy produced by solar PV systems into solar thermal using heat transfer fluid rather than oils.

There will be many benefits to this new technology once it is finished. The most important one is that the cost to store solar energy will become cheaper and utility companies will be able to use solar power plants as baseload plants.

 

Solar Panel with Built-In Battery

Researchers in the United States Department of Energy have created a battery that is 20% more efficient and 25% cheaper than anything on the market today.

The difference between this battery and the ones on the market is that the rechargeable battery is built into the solar panel itself, as opposed to operating as two standalone systems.

 

Solar Cells Manufacturing

Solar power systems are expensive compared to traditional fuel sources because of the manufacturing process. This is the reason why scientists are focusing on ways to improve the efficiency of how solar components are manufactured.

Magnesium Chloride

Today, 90% of solar panels are made of silicon semiconductors, the key ingredient to converting sunlight into electricity.

The next generation of solar panels will be made of a thin-film technology that uses narrow coatings of magnesium chloride in solar cells. This technology would be cheaper and more efficient to engage in the photovoltaic process.

The good news is, once it is accomplished, the solar companies in Malaysia will be able to use these new technologies to provide customers with clean energy at affordable prices.

solar panel with sunset view

Solar’s 20 Most Overlooked Benefits for Global Sustainability

/0 Comments/in , /by

Long too long ago a new study was released with a complete list of the most overlooked benefits of renewable energy. This study shows how solar projects provide benefits to the ecosystem and biodiversity conservation.

The study was conducted by UC Davis, the Center for Biological Diversity and 11 other organizations. They have made a list of all the advantages of solar PV projects to understand all the benefits better.

Nature Sustainability was in charge of publishing the study, in which they recognized 20 missed advantages of solar energy.

The research found out that when solar power systems use the principles of TESs (Techno-ecological synergies), they have the potential to improve air, water and soil resources, plus they provide clean energy.

20 Overlooked Benefits of Solar Energy

  1. Air pollution reduction
  2. Animal welfare
  3. Biological control
  4. Carbon sequestration and storage
  5. Climate regulation
  6. Energy equity and/or security
  7. Erosion prevention and maintenance of soil fertility
  8. Fuel diversity
  9. Food system resilience
  10. Grid reliability and/or resilience
  11. Habitat for species
  12. Heating and cooling efficiency
  13. Human health and well-being
  14. Land sparing
  15. Maintenance of genetic diversity
  16. Pollination
  17. PV module efficiency
  18. Urban heat island reduction
  19. Water-use efficiency
  20. Water quality

Noor Complex Solar Power Plant, Morocco

Solar Power Energy Future

The study also mentions the partnership between the Center for Biological Diversity and UC Davis. This partnership will highlight the future of the solar industry to the well-being of the entire planet.

Renewable energy is the best way to create an energy system that provides benefits for humans, wildlife and savage habitats.

Solar energy has more advantages than people might think. Besides the ones mentioned by the study, solar power systems can reduce energy bills, have low maintenance costs and can produce electricity in areas without access to the energy grid.

Solar energy is the fastest-growing source of power worldwide. In Malaysia, the government has set a goal of renewables accounting for national power generation capacity by 2030.

In 2018, the government established a 500-megawatt net energy metering scheme to give a boost at solar and renewable energy generation in the commercial and industrial sectors.

If all the roofs in Peninsular Malaysia have solar panels, Malaysia would be able to generate 1.4 times more electricity, compared with the conventional method of fossil fuel.

With all the new studies about the advantages and benefits of solar energy, the government should commit the use of 100 percent renewable energy. By using solar energy, we will protect our climate, air quality, water, land and wildlife.

Conclusion

The study about the solar energy industry conducted by UC Davis, the Center for Biological Diversity and 11 other organizations recommended a model for engineering that makes it possible for solar energy systems to maximize both technological and ecological benefits.

These 20 overlooked benefits of the solar industry go from carbon sequestration to improvements and pollinator habitats.

Solar panel systems can be installed in different places, including rooftop solar, solar on contaminated land, and water solar farms.

Solar energy is the best solution to bring electricity in areas where there is no access to the energy grid. It should not create unnecessary negative impacts, especially when technology is maximizing the positive effects of this type of energy.

Right now Malaysia is only generating 2 percent of electricity by renewable energy sources, which make it highly dependent on limited fossil fuel resources such as oil, coal or natural gas.

That’s why the government is increasing this renewable energy mix from 2% to 20% by 2030. To achieve this the Ministry is selecting commercial and industrial buildings to go solar and be the first ones to adopt the revised Net Energy Metering (NEM) scheme.

Finally, the solar power industry technology is advancing and it has made huge improvements. We can only expect that quantum physics and nanotechnology can likely increase the effectiveness of solar panels and the solar industry in general.

Sources: PV Magazine

India Floating Solar Farm

Floating Solar Farms

/0 Comments/in , , /by

Solar technology is the cleanest and most profitable renewable energy resource available today. The solar industry in Malaysia is now developing the implementation of floating solar farms.

Judging from the fact that Malaysia is one of the largest solar PV manufacturers in the world, it is not surprising that it can have one of the most efficient solar farms in the world. Right now, the entire solar power industry in Malaysia is producing 67% of the 270 MW of renewable energy.

Moreover, the industry is now looking to implement a floating solar farm to provide more people with green energy.

Solar technology can be used for domestic, commercial, and industrial purposes. It has a wide variety of uses that include electricity and light generation.

A solar floating farm refers to a formation of solar panels on construction that floats on a body of water, in most cases an artificial basin or a lake.

It was in 2007, in Japan where the first floating solar farm was installed. The first commercial installation was in California in 2008. Since then, this technology has had a rapid growth. As of 2014, the first 20 plants had been built around the world, overcoming the 200 MW of installed power.

Right now, China has the largest floating solar farm in the world, The solar farm that is located in Anhui Province can produce 150 megawatts, supporting approximately 112,500 residents.

 

Benefits of Solar Floating Farms

No Land Space

Floating solar farms are great for countries with a limited space of land. They can be used in areas such as lakes, and make them a powerful solar energy generator.

Cheaper

Solar Floating Farms cost less to install than land-based solar panels.

Why?

First, you don’t need to buy a parcel of land, which can be expensive. And there is no need to treat the soil or clean the land.

Plus it boosts the solar panels power production by 22% thanks to the natural cooling effect of the water.

floating solar farm

 

How does a Floating Solar Farm Works?

The solar panels are connected to interrelated, plastic rafts that let them stay floating. In these floating solar farms, there are also pathways so workers can install, and reach the solar panels.

All the materials used are made for water environments. Inverters are not in the water but they are located onshore, and the wire are water-resistant or buoyed by flotation devices.

There are also other things to consider — the connection between the solar panels needs to be strong to keep them together. The floating solar farms are designed to be able to resist small waves and of course strong winds.

This type of solar panels systems cannot be installed on the ocean because of the damage that can cause to them (sea salt and big waves are the culprits). But with all the technological advancements, this will be possible in the future. For now, the perfect location for these solar power systems is above the lakes.

 

Floating Solar Plants: A Reality

Many countries around the world including Japan, China, France, Indonesia and Singapore, have already made floating solar plants a reality.

In Malaysia, due to the land scarcity issue, the best solution for large scale solar is developing floating photovoltaic (PV) systems. There are a lot of water areas that can be used. For example, in Selangor alone there are more than 50 lakes.

Right now Malaysia is developing the first floating solar farm in Sg Labu Water Treatment in Silak Tinggi Reservoir, Selangor. The 432 solar panels installed on the floating farm can generate enough solar energy for 20 houses annually.

 

In a Nutshell

By 2020, Malaysia is expecting to complete the installation of 2000 MW of renewable energy.

Without a doubt, floating solar farms are the best solution in places with lots of water. These areas have what it takes to produce solar energy efficiently.

tax incentives for green technology in Malaysia

Tax Incentives for Green Technology in Malaysia

/0 Comments/in , , , /by

Malaysia Government will provide tax incentives for the purchase of green technology equipment, besides giving tax exemption on the use of green technology services.

With these tax incentives, it will allow small and medium enterprises to grow the Renewable Energy market. The main purpose of the Malaysia Government is to attract potential investors and industry players to invest in Renewable Energy.

In addition, the Malaysia government wants to motivate companies to acquire green technology assets and of course, to enhance the number of green technology service providers.

The three groups under the Green Technology Tax incentive: 

  1. Green Investment Tax Allowance (GITA) Assets
  2. Green Investment Tax Allowance (GITA) Project
  3. Green Income Tax Exemption (GITE) Services

Green Investment Tax Allowance (GITA) Assets

GITA Assets are for companies that acquire qualifying green technology assets and there are listed under MyHIJAU Directory. Companies should comply with ALL of the following criteria:

  • The companies should minimise the degradation of the environment or reduce greenhouse emissions.
  • They should promote health and the improvement of environment 
  • They need to conserve the use of energy, water and other forms of natural resources, or promote the use of renewable energy, or are able to recycle waste material resources. 

The Rate of Incentive

  • Green Investment Tax Allowance (GITA) of 100% of qualifying capital expenditure incurred on approved green technology assets from the date of purchase until 31 December 2020.
  • The allowance can be offset against 70% of statutory income in the year of assessment.
  • Unutilised allowances can be carried forward until they are fully absorbed.

Green Investment Tax Allowance (GITA) Project

GITA Projects are for companies that undertake a qualifying green technology. Companies should comply with ALL of the following criteria:   

  • minimise the degradation of the environment or reduce greenhouse emission
  • promote health and improvement of the environment
  • conserve the use of energy, water and/or other forms of natural resources, or promote the use of renewable energy, or are able to recycle waste material resources

Application should be received by MIDA until 31 December 2020.

Rate of Incentive

  • Green Investment Tax Allowance (GITA) of 100% of qualifying capital expenditure incurred on green technology project from the date of application received by MIDA until the year of assessment 2020.
  • The allowance can be offset against 70% of statutory income in the year of assessment.
  • Unutilised allowances can be carried forward until they are fully absorbed.

Green Income Tax Exemption (GITE) Services

GITE Services is for companies which provide green technology services which have been verified by GreenTech Malaysia, and listed under the MyHIJAU Directory. Companies must meet the criteria of green technology service providers as follows: 

  • At least one competent/qualified personnel in the respective green technology*;
  • Must have a green policy related to the environmental or sustainability**; and
  • 100% income must be derived from the respective green technology services.

*Note: Competent personnel are defined as holding a certificate of competency as a service provider in the related field of green technology. The certificate must be recognised by the Government or a Professional Body in Malaysia.


**Green Policy is a statement about the commitment to sustainability and environment management by the company.

All applications must be submitted to MIDA before 31 December 2020. 

Rate of Incentive

  • 100% of statutory income from the date of application received by MIDA until the year of assessment 2020 (the maximum period is 5 years from the date of commencement).

Qualifying Activities

For SEDA, there are two main qualifying activities to be approved for the tax incentives:

  1. Renewable Energy: Commercial and industrial business entities which undertake generation of energy in the form of electricity, steam, heat and chilled water using renewable energy resources such as:
  1. Solar Power (including NEM)
  2. Biomass
  3. Biogas
  4. Mini hydro
  5. Geothermal

*Note: Projects which have been approved with Feed-in-Tariff (FiT) for solar by SEDA are not eligible for the Investment Tax Allowance.

2. Energy Efficiency: Companies invest in energy efficient equipment or technologies and invest in energy saving equipment.

In a Nutshell 

Right now, the entire solar power industry in Malaysia is producing 67% of the 270MW of renewable energy.

There are several solar farms in Malaysia that sells electricity to the grid. Solar farms are designed to produce enough electricity power for thousands of homes and businesses.

If you have never seen one, they are just like the solar panels you install on your roof to generate electricity for your needs.

It’s important to start using renewable energy sources now because they provide clean energy for our lives and reduce climate warming and pollution; and by reducing the use of oil and gas, we can reduce the risk of cancer and heart attacks. 

Interesting Facts about Solar Energy

/0 Comments/in , , /by

There are many things that may surprise you about solar energy. To start with, the solar industry is now in almost every country and it is finally ready to stand on its own.

More and more people are choosing solar energy at a faster rate than ever before in Malaysia.

This explosive growth of solar power comes as a result of the falling cost of solar panels and the many benefits of this renewable energy source.

Are you ready to go solar? Here are 7 interesting facts that you need to know.

7 Facts about the Solar Industry

1. Energy Source

The sun, is without a doubt the biggest and most abundant energy source for earth. In Malaysia, the entire solar power industry is producing 67% of the 270 MW of renewable energy, right now.

The sun sends 173,000 terawatts continuously; and it could potentially satisfy the global energy needs for one year, with only the sunlight reaching the earth every hour.

2. Green Energy Source

Solar energy is a clean, renewable power source that do not lead to air or water pollution, and does not release any gases.

In addition, solar farms in Malaysia follow the environmental laws that regulate the correct disposal of any type of potentially harmful materials for the environment.

3. Good Investment

Solar panels in Malaysia are getting cheaper. The cost per kilowatt has fallen below coal and gas.

Malaysia Fit System, which aims to promote the development of renewable energy so homeowners have a chance to generate electricity and get paid for it by TNB, makes the ROI (return of investment) very attractive.

4. Long Effective Lifespan

The good thing is that once you invest in a solar power plant, it can last 40 to 50 years.

Yes, you can replace the solar panels with new, more efficient modules, and once the infrastructure is built, you will have solar energy power for a long time.

5. Solar Energy is Quick to Deploy

You can quickly build small solar plants, in a matter of weeks to restore electricity after a disaster. No other fossil power plant can be installed so quickly.

6. It can be Installed Everywhere

Solar panels systems are most effective due to constant exposure to the sun, but this doesn’t mean that it cannot generate electricity or heat when it is cloudy, raining or cold. You can enjoy solar energy in any region.

Solar panels need sunlight to generate electricity, not sun heat.

7. Largest Solar Park

The largest solar park in the world is located in the Sahara Desert. Once the project is completed by 2020, with a capacity of 580 megawatts, it will provide electricity power to 1 million people.

Malaysia largest solar farm is located on 98 hectares of land in Mukim Tanjung 12, Sepang. It uses 230,000 solar panels, increasing TNB renewable energy capacity to the national grid to 73.2 megawatts.

Even though the solar industry in Malaysia is starting to get a lot of attention, with the Government setting a target of having 20% of the country’s electricity generated from renewable sources by 2030, we are still a small fish compared to China.

China installed more than 50 GW last year. This could power 8.2 million homes.

Benefits of Solar Energy

The main benefit of solar energy is that it is truly a renewable energy source that is available every day, and in every region of the world, unlike some other sources of energy.

Moreover, we can never run out of solar energy.

Other benefits include:

  • Reduces electricity bills
  • Low maintenance cost
  • Good long-term investment
  • Government benefits
  • Can be connected to the electricity grid

Solar energy has a favorable impact on the environment, and it’s free and abundant.

So if we invest in a solar energy system, we can reduce our dependence on fossil fuels in favor of the most consistent source of energy we have, the sun.

Yeo Bee Yin

Malaysia Government Open Tender for RM 2bil of Large Scale Solar (LSS) Project

/0 Comments/in , , /by

On February 15, 2019, Yeo Bee Yin, the Energy, Technology, Science, Climate Change and Environment Minister, has called for bids for an estimated RM2 billion worth of projects under LSS3 scheme to increase the production of electricity from renewable energy.

The competitive bidding process, Yeo said, would open from February to August 2019. By the end of the year, the outcome of the exercise is expected.

Who will win this bidding exercise?

First, this is an open tender free for all. Malaysia government is looking for whichever party that can offer the lowest price for the first 500 megawatts (MW) and pass all the required financial and technical qualifications.

Yeo explained that the contractors for engineering, construction and commissioning must be 100 per cent local and added that the ownership can be up to 49% foreign.

She made it a point at the conference that the government is looking for the best price.

solar farm

To lower electricity tariffs and get better financing rates from financial institutions, the quota offered to each developer will be increased to 100 MW from 30MW for the LSS3 scheme.

Yeo also added that quotas offered to developers will no longer be based on capacity range, to allow them to bid for higher capacities.

The main purpose is that by 2030, or sooner, electricity tariffs can be lowered and become competitive against other forms of energy power such as gas and coal.

Why is this important?

Renewable energy provide tariffs that are more stable because they do not rely on market prices of fuel, and are calculated based on the levelized cost of energy.

With LSS2, the solar tariffs can go as low as 33.98 per kilowatt hour, and now with this open tender, it could go lower.

The two cycles of LSS projects had a total installed capacity of 958 MW.

The Malaysia government plans to increase the country’s electricity from 2 per cent from renewable sources to 20 per cent in 2025. This means about 3,991 MW of new energy capacity will be needed in addition to the grid.

By doing this, it will open more opportunities to incumbents and new entrants. This without a doubt will be more noticeable on the smaller players.

Solarvest Commercial / Industrial solar panel

Malaysia government also plans to increase electricity generation by other mechanisms such as feed in tariff sources, biogas, biomass, and geothermal mini hydro while promoting LSS projects.

The LSS3 project is an effort of the Malaysia Government towards the growth of renewable energy in the country. LSS projects produce 958 MW of electricity between the end of 2018 until 2020.

In Malaysia, solar energy accounts for about 67% of renewable energy capacity while biogas and biomass are the second largest with 28%.

It is expected that LLS3 will have the same success of the previous two rounds, the most recent of which saw awards for 563MW in December 2017.

The submission of proposal will close on August 19, 2019, before 5.00pm.