Increase the depleting rooftop solar quota to stem unemployment & climate crisis

On 2nd January 2021, Parti Sosialis Malaysia (PSM) had welcomed the refreshed rooftop solar quota under Net Energy Metering 3.0 (NEM 3.0) from the government but criticised that the solar quota was too low1. The government had projected that the 300MW solar quota for the commercial sector would last for 3 years, but PSM projects that it will instead be exhausted within months.

The entire solar quota for the commercial sector could potentially be exhausted by the end of May after the take-up rate hit 75% within 43 days. The rooftop solar industry will come to a near halt stalling job creation as the commercial sector represents 90% of total rooftop solar demand.

CategoryQuota (MW)Take-Up (13 May 2021)1
Capacity (MW)Rate (%)
Residential1009.119
Government10012.7713
Commercial300222.5875
1 http://www.seda.gov.my/reportal/nem/

The green jobs created by the solar industry are crucial to stem chronic unemployment and the climate crisis. Besides that, the rapid adoption of rooftop solar by the commercial sector will bring down the rooftop solar panel prices. The decrease in rooftop solar panel prices will increase the installation rate by the price-conscious residential sector.

Without adopting a smart electricity grid (SEG), Tenaga Nasional Berhad’s (TNB) electricity grid can only accept bout 4,000MW of solar power3. The government had already allocated about 3,500 MW until 2023 under the Large-Scale Solar (LSS1-3) and rooftop solar (NEM 1-3) programmes, leaving a buffer of 500MW for rooftop solar4. There is also about 200MW of unutilised Large-Scale Solar quota.

The government needs to increase the depleting rooftop solar quota for the commercial sector to stem unemployment and the climate crisis.

Written by;

SHARAN RAJ
National Coordinator
Central Committee
Parti Sosialis Malaysia (PSM)
&
State Secretary
Parti Sosialis Malaysia Negeri Melaka (PSM Melaka)

1 https://focusmalaysia.my/mainstream/psm-increase-nem-3-0-quota-to-1800mw-current-target-too-low/

2 http://www.seda.gov.my/reportal/nem/

3 https://www.malaymail.com/news/malaysia/2021/03/24/green-activist-claims-johors-rm1.4b-pengerang-solar-project-would-eat-up-ma/1960635

4 https://www.theedgemarkets.com/article/lss4-awards-—-boon-or-bane-winners

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