31st July 2023 - 3 min read
Economic Affairs Minister Rafizi Ramli has proposed a plan where Malaysians are encouraged to lease their rooftops for the installation of solar panels, in a bid to encourage the use of renewable energy (RE). This plan will also allow individuals to reduce their electricity bills, and even earn some extra income.
“In every home, we intend to give households the option to lease out their rooftops in return for a monthly income that could lower their electricity bills and put more cash in their pockets,” said the minister during the launch of the National Energy Transition Roadmap (NETR) Phase 1 last Thursday – which also included several other RE initiatives.
Rafizi acknowledged, however, that it is presently very difficult to convince families to buy and install solar panels on their rooftops as the cost could potentially come up to RM40,000 or RM50,000. As such, Rafizi said that this new plan will involve Malaysians leasing their rooftops to companies registered under the NETR, where they will not need to bear the installation costs. Instead, the fees will be borne by the companies, paid on a monthly basis.
“The company will sell the proceeds from the solar and supply electricity to our energy grid. If we do this, everyone who has a house, whether in Kelantan, Kedah, or Terengganu, can benefit from it,” the minister elaborated in a subsequent Twitter post after the end of the NETR launch event.
Rafizi also revealed that to spearhead the rooftop solar initiative, the government has allocated RM80 million for solar panels to be installed on the rooftops of government buildings. Additionally, Sime Darby Property has agreed to participate in a pilot project at a new township, where it will install solar panels to generate an estimated 4.5 megawatt (MW) across 450 homes. Sime Darby will also manage everything under this project – from leasing deals with homeowners, to installation and power storage – without government funding.
The introduction of this rooftop solar initiative – as well as the launch of the overarching NETR – is in line with Malaysia’s latest renewable energy target, which was revealed just in May 2023. Specifically, the government has committed to increasing the use of renewable energy within the country up to 70% in the power mix by 2050. Previously, Malaysia had set a target of 40% of renewable energy in its total power generation by 2035.
At present, however, Malaysia is still relying predominantly on coal and natural gas to power its electricity. In 2021, only about 17% of its electricity is generated from renewable sources – with a breakdown of approximately 16% from hydro, 1% from solar, and 1% from biomass.
(Sources: Free Malaysia Today, Sinar Daily, SCMP)
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