Government Abolishes Quota for Solar Panel Installation Under Self-Consumption Scheme

The government has announced the removal of the 85% demand capacity cap for non-domestic users under the Self-Consumption (SelCo) programme, paving the way for broader adoption of solar energy technologies, including installations on land and over water bodies. The revised guidelines, set to take effect from January 1, 2025, were outlined in a statement issued on Tuesday by the Ministry of Energy Transition and Water Transformation (Petra).

Initially launched in 2017, the SelCo programme restricted solar photovoltaic (PV) installations to rooftops, limiting factory owners to generating no more than 85% of their facility’s electricity demand. Furthermore, any surplus energy generated was barred from being exported back to the national grid.

Under the updated framework, SelCo will now extend its coverage to include agricultural consumers and introduce energy storage system requirements, marking a significant policy shift towards a more flexible and inclusive approach to solar energy adoption.

The Ministry emphasized that these adjustments align with the government’s broader strategy to accelerate the energy transition and facilitate sustainable energy practices. The inclusion of land-based and floating solar installations reflects an effort to optimize available resources and expand renewable energy infrastructure.

“Petra is confident that these improvements will significantly broaden access to clean electricity, particularly for corporate and industrial sectors seeking to meet their ESG commitments,” the Ministry stated. It further underscored that the enhanced SelCo programme would play a pivotal role in achieving Malaysia’s target of a 70% renewable energy capacity mix by 2050.

The updated guidelines signal a decisive step towards advancing Malaysia’s energy transition goals, fostering innovation in solar energy deployment, and enhancing the resilience of the national energy landscape.