Malaysia government eases restrictions on self-consumption solar energy. (Photo: SEDA)

In a move to accelerate its energy transition, Malaysia has continued to relax conditions and scale for solar energy installation. Following the announcement of an increase in the net metering (NEM) solar quota, the government on December 24 further revealed plans to remove the capacity limit for non-residential users and expand installation sites beyond rooftops.

No capacity limits for self-consumption solar

Under the Solar Self-Consumption Program (SelCo) launched in 2017, users were previously only allowed to install solar panels on the rooftops of their buildings, with a capacity limit set at 85% of the building’s maximum electricity demand. According to the announcement by the Ministry of Energy and Natural Resources (PETRA), this policy will now be revised to meet the needs of corporate users in areas such as environmental protection, social responsibility, corporate governance (ESG), and carbon reduction.

The government will allow the installation of ground-mounted and floating solar systems on private land, removing the previous capacity limit. The new policy will also extend to the agricultural sector. In addition, the new regulations will require the installation of energy storage systems to ensure the stable operation of the national grid. The revised rules will come into effect on January 1, 2025.

Malaysia’s solar energy push to achieve 70% renewable energy target

On December 23, PETRA also announced an increase in the net metering quotas for residential (NEM Rakyat) and commercial-industrial (NEM NOVA) users. To encourage rooftop solar development, the Malaysian government will allow electricity users to send excess power back to the national grid to offset their electricity bills after meeting their own electricity consumption.

Under the revised scheme, the total net metering capacity for residential users will increase to 600 MW, up from 450 MW, while the cap for commercial-industrial users will rise to 1,700 MW, an increase of 300 MW. The application deadline for this program has been extended to June 30, 2025, although it may close earlier if the quota is filled.

Additionally, the “Solaris” program, which encourages the installation of rooftop solar panels among the public, has also had its application deadline extended to April 30, 2025. This program offers subsidies of up to 4,000 MYR (about 890 USD) per kW for first-time residential applicants.

The revised quotas for net metering and the Solaris program will also take effect from 2025. According to Malaysia’s National Energy Transition Roadmap (NETR), the country aims to raise the share of renewable energy in its power generation mix to 70% by 2050, up from the current share of less than 20%.

Source: Bernama、The Edge Malaysia