Malaysia Launches Pilot Residential Solar Project to Boost Renewable Energy Mix

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“Malaysia launches pilot residential solar project with Sime Darby and TNB under the CREAM programme, supporting the NETR goal of 70% renewable energy by 2050.”

Kuala Lumpur, 29th September 2025, 11.43am – The Energy Transition and Water Transformation Ministry has launched a pilot residential solar project under the Community Renewable Energy Aggregation Mechanism (CREAM), marking a new step in Malaysia’s push to expand its renewable energy share.

Deputy Prime Minister Datuk Seri Fadillah Yusof, who also serves as the Energy Transition and Water Transformation Minister, said the project is being implemented through a collaboration between Sime Darby Property and Tenaga Nasional Bhd’s subsidiary GSPARX. The first initiative has been rolled out in Bandar Elmina, one of the earliest participants in the programme.

Fadillah explained that the scheme allows homeowners to lease or rent their rooftop space to third parties for solar photovoltaic (PV) installations. The generated electricity will be aggregated and supplied to offtakers, enabling communities to directly support Malaysia’s green energy goals.

“Sime Darby will serve as the local renewable energy aggregator, matching rooftop solar power generation with buyers seeking to meet their ESG commitments,” he said at the launch on Thursday.

He added that the initiative supports the National Energy Transition Roadmap (NETR), which targets raising Malaysia’s renewable energy share to 70% by 2050.

To encourage wider participation, the ministry has reduced the community access charge by 40%, from 15 sen/kWh to 9 sen/kWh. At the same time, Fadillah assured that the Energy Commission and TNB will work on strengthening the distribution system to enable smarter, more flexible integration of renewable energy at the local level.

“This collaboration shows proactive steps by the corporate sector to support the government’s call for a sustainable future,” he said, expressing hope that Sime Darby’s solar project will serve as a proof of concept for scaling up renewable energy generation at community and township levels.

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