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Govt eases solar SelCo conditions to support industry

27 Feb 2025, 3:07 PM
Govt eases solar SelCo conditions to support industry

KUALA LUMPUR, Feb 27 — The government has agreed to implement several improvements to the conditions of the solar energy Self-Consumption (SelCo) programme, including exempting the requirement for installing energy storage systems for all categories until December 31, 2025.

Deputy Prime Minister Datuk Seri Fadillah Yusof said the measure aimed to provide industry players with the opportunity to adapt to the new requirements without bearing a high financial burden.

Fadillah, who is also the Energy Transition and Water Transformation Minister, said other improvements included exempting installations with a capacity below one megawatt peak (MWp) from standby charges and reducing the standby charge for capacities exceeding 1MWp from RM14 per kilowatt peak (kWp) to RM12/kWp.

“The industry players generally welcome these improvements to the programme. However, they believe that the standby charge and the requirement to install energy storage systems would reduce business profits.

“This matter has been reviewed to strike a balance between grid stability and business viability. Following several discussion sessions and consultations with stakeholders, we have agreed to improve the standby charge conditions and the energy storage system requirement for this programme,” he said.

Fadillah was speaking at the National Energy Award Appreciation Ceremony tonight, held to celebrate the achievements of 38 public and private sector organisations that have successfully implemented Malaysia's energy transition initiatives.

Apart from focusing on increasing green energy generation, he said efforts were also being made to strengthen the 3D initiatives — Digitalisation, Decentralisation, and Decarbonisation — to create a conducive green investment ecosystem by facilitating and diversifying access to green electricity supply.

To achieve this, steps being taken included increasing the composition of renewable energy (RE) sources in the national electricity supply system through the bidding of the Large Scale Solar programme for 2025 and 2026, with a capacity of up to 6,000MW.

Additionally, the construction of the country’s largest solar power plant and floating solar power plant, with capacities of 650MWp and 450MWp, is expected to begin operations as early as the fourth quarter of 2027.

He said the government is also expanding access and options for green electricity supply to electricity users to fulfil environmental, social, and governance commitments through new programmes such as the Corporate Renewable Energy Supply Scheme.

“Furthermore, the diversification of RE generation sources is encouraged through the development of firm supply RE sources such as biogas, biomass, and small hydro under the Feed-in Tariff Programme and the Low Carbon Energy Generation Programme,” Fadillah said.

Other measures included utilising rooftop and building premises space for solar system installations by increasing the quota for the Net Energy Metering Programme, improving the Green Electricity Tariff programme, and enabling the first cross-border RE trading between Malaysia and Singapore.

— Bernama

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