The final leg of MPIA Solar Roadshow 2020-2021 was held in Kuala Lumpur on 16 December 2021, it was the seventh location of the event after Selangor, Perak, Melaka, Pahang, Johor and Penang.
The solar roadshow was a response to heed the government’s call for renewable energy adoption. To encourage solar energy harvest, the government has introduced the Net Energy Metering programme or NEM, which allows excess of electricity generated from the rooftop solar PV systems to be exported to the grid, in exchange for credits that can be used to offset our electricity bills.
The first 500 MW quota of NEM was fully taken 2020, and when a further 500 MW quota was released earlier this year, 300 MW were snapped up by energy consumers in the commercial and industrial sectors in just three months. As a result, another 300 MW quota was released in November 2021.
MPIA President Davis Chong said there is strong demand for NEM quota from different business sectors due to the benefits of bill savings or product branding, or ESG commitment.
He said investment in solar PV system can also be an option for companies to hedge against any tariff increment, or to reduce the cost of doing business even if the electricity tariff remains unchanged. “Given the current low financing rate and the Green Investment Tax Allowance, this is perhaps the best time for solar PV system investment. Please note that the Green Investment Tax Allowance will end in 2023 and we are not sure if the government would extend it further, because the incentive was already extended from year 2020.”