| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2019 - 2023 |
| CAGR | 9.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Malaysia Solar Energy Market Analysis
The Malaysia Solar Energy Market is expected to register a CAGR of greater than 9% during the forecast period.
The COVID-19 pandemic slightly affected the solar PV installations in the country due to lockdown restrictions, supply chain disruptions, solar PV production, and project implementation delays. The market has now reached pre-pandemic levels.
- Factors such as the increasing investments in the renewable energy sector and the country's efforts to shift from fossil fuel-based power generation are expected to drive the market during the forecast period.
- However, high initial investment costs associated with solar projects are expected to hinder market growth during the study period.
- Nevertheless, Malaysia is aiming to install 9 GW of solar energy capacity by 2050. Therefore, the country's ambitious solar energy targets and business models, such as solar leasing, are expected to create many opportunities in the near future.
Malaysia Solar Energy Market Trends
The Utility Sector to Dominate the Market
- Malaysia generates and consumes clean electricity from some of its large-scale solar power generation plants, such as the Sepang solar plant of 50 MW operated by TNB Renewables Sdn. Bhd. (TRe), which is made up of 238.140 solar panels. In the same way, the 50 MW Mukim Tanjun solar farm on 98 hectares with 23,000 solar panels makes clean electricity and prevents 76 000 tons of CO2-equivalent emissions from being released each year. Large-scale solar projects in Malaysia are mostly made up of other projects that are still in the planning stages.
- The Malaysian government said in October 2022 that a power purchase agreement for large-scale PV would be extended from 21 to 25 years. This change would affect the projects that won the fourth round of large-scale solar awards, called LSS4 in Malaysia. It is expected to significantly increase the installed capacity of solar energy.
- In line with Singapore International Energy Week, the Malaysian Ministry of Energy set renewable energy goals for the year 2035.Malaysia wants to get 31% of its energy from renewable sources by 2025, which would be 8.53 GW, and 40% by 2025, which would be 10.94 GW.
- Because solar energy is so popular, its net installed capacity was projected to reach 1,787 MW in 2021, up from 32 MW in 2012.
- Based on the above, it seems likely that the utility sector will lead the Malaysian solar energy market over the next few years.
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Supportive Government Policies and Initiatives Driving the Market Demand
- In 2022, Malaysia's government declared its national energy policy (NEP) 2022-2040, aiming to achieve a 4% share of solar energy in the country's fuel mix by 2040. This could ramp up the installation of solar energy projects in the country.
- Similarly, the NEP also emphasized launching initiatives such as a Long-term pipeline of Large Scale Solar (LSS) projects, incentivizing dual-use agri-voltaic solar farms, an extension of Net Energy Metering (NEM), and increasing capital access for distributed solar to enhance and unlock the potential of indigenous solar resources.
- In 2021, Malaysia's energy generation from renewable sources reached 3.1 Twh, with a growth rate of around 11% from previous year.
- The Sustainable Energy Development Authority (SEDA) introduced NEM 3.0, effective from 2021 to 2023, to uplift solar utilization in the country. The net metering program also initiated three novel initiatives to deploy solar energy systems: the Rakyat program for households, the NEM GoMEn program for government buildings, and NOVA Program for the commercial & industrial segments. It is likely to expand the solar energy market in Malaysia.
- The Malaysia renewable energy policy targets a capacity increase of renewable energy to 4000MW by 2030. Also, renewable energy generation in the country has increased in recent years. It was 3.1 Terawatt hours in 2021, a 10% increase from the previous year. Considering the capacity expansion as per policy & increasing generation trend, the solar energy market in Malaysia will witness an upward trend in the coming years.
- Considering the ambitious targets and other incentive measures introduced by the government, Malaysia's solar energy market is expected to increase.
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Malaysia Solar Energy Industry Overview
The Malaysian solar energy market is semi fragmented. The key players in the market include (in no particular order) JA SOLAR Technology Co. Ltd, Solarvest Holdings Berhad, TNB Engineering Corporation Sdn Bhd, Canadian Solar Inc., and Plus Xnergy Holding Sdn Bhd, and among others
Malaysia Solar Energy Market Leaders
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JA SOLAR Technology Co.,Ltd.
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Solarvest Holdings Berhad
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TNB Engineering Corporation Sdn. Bhd.
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Canadian Solar Inc.
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Plus Xnergy Holding Sdn. Bhd.
- *Disclaimer: Major Players sorted in no particular order
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Malaysia Solar Energy Market News
- January 2023: Advancecon Holdings Bhd announced its strategy to invest USD 5.13 million to fund the development of a solar photovoltaic (PV) project under the Large Scale Solar 4 (LSS4) program under the MEnTARI program.
- October 2022: The government of Malaysia invited applications for 600 MW under the corporate green power program (CGPP) through the virtual power purchase agreement (VPPA) mechanism. It will attract all the solar energy developers who wish to sell electricity to corporate clients based on mutually agreed pricing.
Malaysia Solar Energy Industry Segmentation
Solar energy refers to the energy obtained from the sun that is converted into thermal or electrical energy by using technologies such as solar photovoltaic panels and concentrating solar-thermal power (CSP). Solar heating and cooling are well-established technologies in renewable energy ecosystems. Solar energy is an environmentally friendly and sustainable technology.
The Malaysian solar energy market is segmented by end-user. By end-user, the market is segmented into residential, commercial & industrial (C&I), and utility. For each segment, market sizing and forecasts have been done based on installed capacity (MW).
| End-User | Residential |
| Commercial and Industrial (C&I) | |
| Utility |
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Malaysia Solar Energy Market Research FAQs
What is the current Malaysia Solar Energy Market size?
The Malaysia Solar Energy Market is projected to register a CAGR of greater than 9% during the forecast period (2025-2030)
Who are the key players in Malaysia Solar Energy Market?
JA SOLAR Technology Co.,Ltd., Solarvest Holdings Berhad, TNB Engineering Corporation Sdn. Bhd., Canadian Solar Inc. and Plus Xnergy Holding Sdn. Bhd. are the major companies operating in the Malaysia Solar Energy Market.
What years does this Malaysia Solar Energy Market cover?
The report covers the Malaysia Solar Energy Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Malaysia Solar Energy Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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Solar Energy in Malaysia Industry Report
The Malaysia solar energy market has experienced substantial growth, driven by increasing environmental concerns, government initiatives, and declining costs of solar technologies. The market is segmented into residential, commercial, industrial, and utility sectors, each presenting unique opportunities and challenges. Government support through policies and incentives, such as feed-in tariffs and net energy metering schemes, has been pivotal in promoting solar energy adoption. Technological advancements, including more efficient solar cells and energy storage solutions, have further bolstered market growth. Despite challenges like initial investment costs and grid limitations, the solar industry in Malaysia offers significant opportunities in rooftop installations, off-grid solutions, and industrial applications. The competitive landscape features both domestic and international solar energy companies in Malaysia, with ongoing research and development driving innovation. The future outlook for the Malaysia solar energy market is optimistic, with continued government support and technological advancements expected to enhance market competitiveness and sustainability. Statistics for the Malaysia solar energy market share, size, and revenue growth rate are provided by Mordor Intelligence™ Industry Reports. The Malaysia solar energy analysis includes a market forecast outlook and historical overview. Get a sample of this industry analysis as a free report PDF download.
