Malaysia has launched a rooftop solar leasing scheme to promote renewable energy and reduce electricity costs, especially for B40 and M40 households. The initiative allows homeowners to lease their rooftops for solar power generation. Third parties will aggregate multiple rooftops to supply green electricity to local consumers.
Gading Kencana Sdn Bhd managing director Datuk Muhamad Guntor Mansor Tobeng welcomed the scheme, noting strong interest from the public. He suggested expanding the scheme to include religious and community buildings like mosques, temples, and churches, which have large rooftops suitable for solar energy generation.
The scheme is part of the Community Renewable Energy Aggregation Mechanism. It complements the Corporate Renewable Energy Supply Scheme, launched in September 2024. This corporate scheme allows companies to purchase renewable energy directly from independent power producers through an open grid access system with predefined charges.
However, stakeholders have raised concerns. Lionel Yap, secretary of the Malaysian Photovoltaic Industry Association, said clear regulatory guidelines are needed. He pointed out issues related to insurance, liability, and contract terms, asking questions like who would be responsible for damages to leased rooftops and what contract lengths would be reasonable.
Saravanan Thambirajah, CEO of the Federation of Malaysian Consumers Associations, highlighted the potential benefits for lower-income households, such as earning passive income without the cost of installing solar panels. He noted that many consumers are unaware of renewable energy programs like the Net Energy Metering and Sustainability Achieved Via Energy Efficiency initiatives.
In addition to the rooftop scheme, Malaysia has several large renewable energy projects. The Kedah Solar Farm has an installed capacity of 100 megawatts (MW). It operates as a utility-scale solar power plant, supplying electricity to the national grid and supporting Malaysia’s renewable energy targets.
The Pengerang Integrated Complex in Johor includes a solar power facility with an installed capacity of 50 MW. This complex focuses on integrating renewable energy with industrial operations, aiming to reduce carbon emissions from the petrochemical sector.