Govt’s sturdy dedication in direction of RE sends a robust sign to each home and worldwide buyers
by HAJAR UMIRA MD ZAKI / pic TMR
THE authorities lately launched the Nationwide Vitality Transition Roadmap (NETR) in July this yr. This roadmap goals to alter how we use vitality and create new enterprise probabilities within the vitality sector.
The NETR has completely different phases. Step one, Part 1, consists of 10 vital concepts and 6 predominant methods to shift to raised vitality sources like renewables and applied sciences like hydrogen.
Economic system Minister Rafizi Ramli shared that by 2050, this plan might appeal to investments starting from RM435 billion to RM1.85 trillion.
In line with the Worldwide Commerce Administration, a few of the huge enterprise probabilities highlighted within the NETR embody a big photo voltaic plant in Asean, placing photo voltaic panels on individuals’s rooftops, designating areas for renewable vitality (RE) and creating huge photo voltaic parks.
In Might, Rafizi mentioned that after taking a look at a plan known as the RE Strategic Growth Roadmap and Commerce Coverage, they agreed that by 2050, 70% of the nation’s vitality ought to come from renewable sources. This may assist create new probabilities for the financial system and appeal to worldwide firms.
Aligned with the federal government’s aspiration, Verdant Photo voltaic Sdn Bhd applauded the aspiration and mentioned it was extremely encouraging and represented a forward-thinking strategy to vitality and financial coverage.
In welcoming the transfer, the solar energy firm’s CEO Zeth Lim mentioned the federal government is fostering an surroundings the place participation within the clear vitality transition is just not solely possible but additionally worthwhile by attempting to alter the economics of RE.
“This technique can catalyse widespread adoption of RE applied sciences, fostering a vibrant and aggressive market that spurs innovation, reduces vitality prices and creates a wealth of latest employment alternatives within the inexperienced vitality sector.
“Moreover, such a dedication from the federal government sends a robust sign to buyers, each home and worldwide, that Malaysia is dedicated to a sustainable vitality future,” he told The Malaysian Reserve (TMR).
Lim anticipates that photo voltaic vitality will play a major position in Malaysia’s transition to a sustainable and resilient future
Demand for Photo voltaic Energy in Malaysia
Established in 2015, Verdant Photo voltaic’s mission is to ship world-class photo voltaic options and distinctive buyer providers, Lim divulged.
He asserted that the main solar energy firm has observed a surge within the Malaysian photo voltaic vitality market over the previous two years. Notably, in 2022, Lim mentioned the residential photo voltaic trade recorded a 56% enhance in installations in comparison with 2021.
“This development signifies a rising consciousness and acceptance of photo voltaic vitality options amongst Malaysian households.
“The elements contributing to this vital enhance probably embody falling prices of photo voltaic installations, improved financing choices, authorities coverage and a heightened consciousness of the environmental advantages of RE,” he mentioned.
Furthermore, the adoption of photo voltaic vitality in Malaysia has been rising steadily and rapidly, and as of Aug 16 this yr, it had already surpassed the full-year whole for 2022 by 5%.
“We imagine this continued development is a testomony to the growing recognition of photo voltaic vitality’s financial and environmental advantages by owners.
“It’s a promising signal that Malaysia is shifting progressively in direction of a greener and extra sustainable future, and it indicators a strong and increasing marketplace for photo voltaic vitality options within the nation,” Lim contended.
In the meantime, the Malaysian Photovoltaic Business Affiliation (MPIA) secretary Lionel Yap additionally mentioned that the demand for the photo voltaic market goes up and pointers have been set by the federal government.
He mentioned it’s a good begin to provoke photo voltaic within the current and preserve engaged on it, as it might be too late if extra time is taken in ready for an ideal plan.
“And from an trade standpoint, we’re very pleased with that. There’ll all the time be a stress when it comes to what the non-public sector needs, what’s finest for the nation and what the general public needs.
“However so long as we are able to preserve that triangle roughly equilateral on the three factors. I believe we’re on an excellent path. And from what we are able to see, we’re on an excellent path,” he mentioned.
Furthermore, Yap noticed that the present administration may be very eager on photo voltaic and decided to see the plan succeed. Putrajaya is presently organising the promotion of photo voltaic in a clearer method by creating an surroundings that is smart for the general public to instal photo voltaic.
Yap is optimistic on the way forward for photo voltaic and is optimistic on the targets that had been set by the govt. for the trade as nicely
Selling Photo voltaic Vitality Adoption
For Verdant Photo voltaic, Lim mentioned they’re devoted in making photo voltaic photovoltaic (PV) accessible to extra owners and companies, consequently enjoying a major position in advancing clear vitality options.
Along with reducing the shoppers’ electrical energy payments and on the similar time decreasing their carbon footprint, photo voltaic additionally permits them to empower their prospects in making sustainable decisions.
“Verdant Photo voltaic is actively selling the adoption of photo voltaic PV installations by providing high-quality merchandise, distinctive service and inexpensive financing choices.
“Moreover, we’re impressed to develop into a web zero firm and are taking proactive steps towards this aim. Not too long ago, we enrolled within the Inexperienced Electrical energy Tariff (GET) programme, which permits us to offset 80% of our workplace’s electrical energy consumption with clear RE,” he mentioned.
Including as much as that, Lim acknowledged the initiative by Vendant Photo voltaic additionally proves its dedication to sustainability and displays its company duty technique.
“By taking part within the GET programme, we aren’t solely decreasing our personal environmental impression but additionally setting a optimistic instance for our purchasers and the trade as an entire.”
Regardless of authorities’s effort to encourage owners and companies to utilise photo voltaic vitality, Lim mentioned there may be nonetheless a major want to extend efforts to boost consciousness of photo voltaic vitality utilization.
He observes that the potential for the photo voltaic PV installations in Malaysia is stable as there are 4 million landed houses within the nation and the present photo voltaic PV installations numbers fewer than 30,000 houses.
Subsequently, extra in depth and focused consciousness campaigns are important with a view to unlock the potential and speed up the adoption of photo voltaic vitality.
“These might embody instructional programmes that inform the general public in regards to the economical and environmental advantages of photo voltaic vitality, and the developments in know-how that make photo voltaic installations extra inexpensive and environment friendly than ever earlier than,” he mentioned.
In the meantime, Yap highlighted the necessity to educate the general public on photo voltaic vitality as there may be nonetheless a mindset that the photo voltaic trade within the current continues to be the identical because it was 10 years in the past, regardless of the trade gamers having moved ahead quickly.
He mentioned individuals with that mindset are on the again foot as they’re unaware of the Company Inexperienced Energy Programme (CGPP) and the Massive Scale Photo voltaic (LSS).
“They’re solely conscious of residential homes they usually assume that’s all of the enterprise.
“Photo voltaic is a really slender area of interest, however it’s a very deep area of interest. And it’s a query of the place on this area of interest do you wish to play? If you wish to focus purely on residential rooftops and nothing else, it’s (nonetheless) a giant playground,” he added.
Challenges
Regardless of its rising recognition, the photo voltaic trade nonetheless faces a myriad of challenges.
Lim mentioned one of many main challenges confronted by native solar energy firms is making photo voltaic PV system installations inexpensive for the common shopper.
Regardless of prices having gone down, he mentioned the upfront set up price, nonetheless, stays a major barrier for a lot of potential adopters, suggesting a necessity for banks to safe cheaper financing choices or set up a government-backed mortgage or subsidy programme.
“Inexpensive financing would decrease the barrier to entry for customers, encouraging extra widespread adoption of photo voltaic know-how throughout Malaysia.”
One other barrier, mentioned Lim, is the scalability of inner programs and processes inside photo voltaic firms. He asserted that firms ought to be competent in dealing with the rising undertaking quantity with out compromising the standard of the work.
“Moreover, long-term insurance policies that present trade gamers with clear visibility for development planning are important. Inconsistent or incessantly altering laws can create uncertainty, making it troublesome for firms to develop long-term methods and safe investments.
“A steady and supportive coverage surroundings, with incentives for each firms and customers, is essential to fostering a thriving photo voltaic trade in Malaysia,” he mentioned, including that it additionally requires strong and agile operational programs.
Form of the longer term
Shifting ahead, Verdant Photo voltaic foresees a vivid and expansive future for photo voltaic vitality in Malaysia. Furthermore, Lim contends that the prices of photo voltaic programs are additionally anticipated to lower as know-how advances.
Thus, photo voltaic installations will proceed rising in quantity as economical decisions develop into aplenty for each residential and industrial prospects.
“Banks and monetary establishments in Malaysia might provide extra engaging mortgage and credit score schemes particularly designed for photo voltaic installations, which is able to assist to eradicate the barrier of upfront prices and allow a extra widespread adoption of photo voltaic know-how.
“Furthermore, the federal government is exhibiting a robust dedication to RE – as demonstrated by its aspiration to realize vital RE capability within the coming a long time – we are able to anticipate additional coverage help that may incentivise photo voltaic installations. These might embody tax incentives and grants that make photo voltaic installations extra financially interesting to companies and households alike,” he shared.
Moreover, Lim anticipates that photo voltaic vitality will play a major position in Malaysia’s transition to a sustainable and resilient future, as consciousness of photo voltaic vitality’s benefits in direction of the surroundings continues to rise and the nation strikes nearer to its RE targets.
MPIA’s Yap shared that there’s virtually a 90% drop within the worth of photo voltaic panels. Regardless of the complaints that photo voltaic set up is dear, Yap mentioned it will definitely has gotten very low-cost.
“At a wider scale, it’s the power of forex. However in case you take a look at it, it has gotten very low-cost.
“After we started the Feed-In Tariff (FIT), an set up was perhaps between RM13,000 and RM15,000 per kilowatt. Immediately, RM15,000 will in all probability get you a 5kW system,” he mentioned.
To ensure that the general public to grasp the decline in costs, Yap shared that educating them is a should, particularly these presently taking a look at putting in a photo voltaic system.
Yap may be very optimistic about what’s coming for the trade within the subsequent 10 years. He’s additionally optimistic on the targets that had been set by the federal government for the photo voltaic trade as nicely.
“Viktor Frankl as soon as mentioned, that is true of flying a aircraft and that is true of human beings. In the event you’re touchdown a aircraft, there’s a crosswind coming. You really flip the plane sideways to satisfy the oncoming wind, so that you just attain the runway versus being reasonable.
“And simply seeing the place the top aim is. You’re gonna find yourself off the runway. So in case you take a look at it as a chart it’s the similar for the photo voltaic trade in Malaysia. Have a look at the place it could possibly be,” he mentioned.
- This text first appeared in The Malaysian Reserve weekly print version
