Malaysia, with its equatorial climate, is naturally predisposed to harness the bountiful solar energy that beams down throughout the year. The solar energy landscape in the country is on an upswing, invigorated by favorable government policies and increasing environmental awareness. Initiatives like the Net Energy Metering (NEM) scheme have been pivotal, incentivizing the adoption of solar power across residential, commercial, and industrial sectors. This surge is not just a trend but a cornerstone in Malaysia’s commitment to renewable energy, aiming to meet the dual goals of energy sustainability and carbon footprint reduction.
Rooftop solar, in particular, has emerged as a vital player in this green revolution. By transforming idle roof spaces into energy-generating assets, rooftop solar systems offer a unique solution that benefits both property owners and the environment. They provide a cleaner energy source, decrease reliance on fossil fuels, and offer the economic advantage of reduced electricity bills.
Stepping into the spotlight, five trailblazing property developers have recognized the transformative potential of rooftop solar energy. Sime Darby Property Berhad, MK Land Holdings Berhad, Teladan Setia Group Berhad, Gamuda Land, and Lagenda Properties are not just constructing buildings; they are crafting eco-conscious communities. These frontrunners are integrating solar solutions into their developments, setting a precedent for sustainability in the real estate industry. Their projects range from large-scale solar farms to solar-ready residential homes, each contributing to the country’s ambitious renewable energy targets.
As Malaysia strides towards a greener future, these top property developers are not just participants but key drivers in the renewable energy narrative. Their endeavors in rooftop solar are more than just business ventures; they represent a commitment to a sustainable future, showcasing a responsible approach to development that balances economic growth with ecological stewardship.
The State of Rooftop Solar in Malaysia
In Malaysia, the rooftop solar sector is witnessing a renaissance. Bolstered by the government’s initiative, the NEM Rakyat programme, a more substantial framework has been established to promote the adoption of solar energy among the masses. This programme is particularly instrumental in propelling residential users to transition to solar power, offering them a chance to offset electricity bills through energy generated by their own solar systems. Such incentives have not only democratized access to renewable energy but have also fueled a growth spurt in the solar industry.
The potential impact of this burgeoning sector is multifold. On the economic front, households and businesses are looking at considerable energy savings. Solar rooftops can significantly reduce reliance on the grid, leading to lower electricity costs and providing a buffer against fluctuating energy prices. Environmentally, the shift to rooftop solar is anticipated to bring about a substantial reduction in carbon emissions. By tapping into the country’s solar potential, Malaysia can curtail its greenhouse gas output, moving closer to its commitment under the Paris Agreement to reduce its carbon intensity by 45% by 2030 relative to the 2005 levels.
Despite the bright prospects, the journey is not devoid of challenges. Initial setup costs, although decreasing, still pose a significant barrier to entry for many. There is also the task of integrating solar energy into the existing power infrastructure, which necessitates technological and regulatory advancements. Moreover, awareness and understanding of the benefits and practicalities of solar installations need to be amplified to encourage wider adoption.
Yet, these challenges are matched by opportunities. The Malaysian government’s vision for 20% renewable energy in the national power mix by 2025 sets a fertile ground for innovation and investment in the sector. The increasing efficiency of solar technology, coupled with declining costs, presents a promising landscape for businesses and homeowners alike. Furthermore, the growing global emphasis on sustainability bolsters the case for solar, potentially leading to new financial mechanisms and subsidies that could lower the barriers to entry.
In this context, rooftop solar in Malaysia is not just an energy alternative; it’s a burgeoning field ripe with opportunities for economic savings, environmental benefits, and a sustainable future. The sector’s expansion is a critical component of the nation’s energy strategy, as it seeks to balance growth with sustainability.
1. Sime Darby Property Berhad
Sime Darby Property Berhad stands at the forefront of Malaysia’s green revolution, pioneering rooftop solar solutions within its visionary City of Elmina, Shah Alam. The property giant has embarked on an ambitious pilot project, involving 1,000 residential landed units, setting a new benchmark for green townships and carbon emissions reduction. This initiative is more than just a foray into energy generation; it’s a transformative venture towards an eco-friendly ecosystem where unused rooftops are turned into power-generating assets.
Group Managing Director Datuk Azmir Merican articulates that this pilot project is just the beginning. With the successful implementation, there is potential to scale this up to an impressive 10,000 homes over the next five years. The approach adopted by Sime Darby Property is innovative: rooftops are leased from homeowners to install solar solutions, and the energy produced is used to power high-demand users within the township, such as retail, commercial, or industrial sectors. This model not only leverages untapped resources but also fulfills the increasing appetite for green energy.
The company’s commitment is well-aligned with the Malaysian government’s vision of attaining 70 percent renewable energy generation by 2050, as underscored by the National Energy Transition Roadmap (NETR) Phase 1. Sime Darby Property’s presentation at Invest Malaysia KL 2023 Special Series, titled “Sime Darby Property – Solar Solutions for Townships,” showcases their strategic plan to integrate rooftop solar energy production across their developments.
The strategy goes beyond diversifying revenue streams; it’s about shaping a sustainable future. Datuk Azmir Merican emphasizes that the venture is a step towards a global energy transition, aiming to maximize asset value and herald an era of sustainable growth for the company and its stakeholders.
Looking ahead, Sime Darby Property is not stopping at rooftop solutions. Envisioning a broader impact, they plan to develop utility-scale, ground-mounted solar farms over approximately 404.7 hectares of land in Johor and Kedah. This expansion is expected to bolster the supply of solar energy, meeting the comprehensive demand requirements of its townships.
Sime Darby Property’s role in Malaysia’s renewable energy landscape is multifaceted. It is not merely a commercial pursuit but a commitment to community empowerment and a significant contribution to the nation’s renewable energy transition. As the company moves forward, it is set to become a key generator of solar energy, playing a pivotal role in the government’s drive towards net-zero emissions. With this, Sime Darby Property reaffirms its position as a catalyst in the realm of real estate, steering the industry towards an eco-conscious and resilient future.
2. Teladan Setia Group Berhad
In a significant move towards sustainable living, Teladan Setia Group Berhad, a Melaka-based property developer, is setting a new standard in green development. Through its subsidiary, Teladan Setia Sdn Bhd (TSSB), the company has penned a Memorandum of Understanding with Micro Energy Holdings (M) Sdn Bhd (MEH), marking the beginning of a transformative journey to install solar photovoltaic (PV) systems in the Taman Bertam Heights Phase 2A Gated and Guarded housing development in Melaka.
This groundbreaking collaboration promises to equip 352 housing units with solar PV systems, varying from 2 kilowatt-peak (KWp) to 4KWp. These installations are not just a nod to the future of housing but a leap towards it, anticipated to slash electricity costs for homeowners by up to 75%. It’s a strategy that resonates with the current economic milieu, where cost-saving measures are not just welcome but necessary.
The initiative places Teladan at the vanguard of Melaka’s green development scene, establishing it as the first property developer in the region to offer solar system-equipped homes to buyers. This move is in concert with the Malaysian Government’s Net Energy Metering Rakyat 3.0 (NEM) programme and reflects Teladan’s commitment to contributing to the nation’s sustainability goals. The solar-ready homes are a testament to the seamless integration of sustainability into the fabric of modern living, serving as a blueprint for future property developments.
Executive Director Mr. Francis Sia Ah Piew expressed pride in leading the charge for eco-friendly property solutions in Melaka. The company’s solar-ready homes are not just about harnessing the sun’s power; they represent a holistic approach to sustainable living that underscores every development undertaken by Teladan. In an era where the cost of living is increasingly burdensome, Teladan offers a dual boon: economic relief and environmental responsibility.
MEH’s Director, V.Kajendran Raj, echoes this sentiment, taking pride in bringing solar-enabled homes to Melaka. With MEH’s rich expertise in solar installations and a track record of successful Feed-in Approvals (FiAs), the partnership is a concerted effort to promote clean energy, reduce carbon emissions, and address global warming. MEH’s commitment to sustainable living and creating a greener world for future generations is at the heart of this collaboration.
The project is on track to be launched in the third quarter of the financial year ending 2023 (3Q2023) and is expected to reach completion by 2026. Teladan Setia Group Berhad’s foray into solar-ready homes is more than just a business venture; it is an embodiment of their dedication to building sustainable communities that serve the dual purpose of benefiting homeowners and nurturing the environment. It’s a stride forward, not just for Teladan, but for Melaka, and indeed for Malaysia’s pursuit of a greener, more sustainable future.
3. Gamuda Land
In an epoch-making partnership, Gamuda Land Sdn. Bhd., a leading name in Malaysia’s real estate sector, has joined hands with ENGIE, a global authority in low-carbon energy and services, to catalyze the evolution of sustainable townships in Malaysia. This strategic alliance is set to bolster Gamuda Land’s commitment to eco-conscious development, aligning with the company’s robust Gamuda Green Plan, which entails a comprehensive Environmental, Social, and Governance (ESG) Framework.
The collaboration is focused on the implementation and exploration of solar technologies, energy efficiency, and sustainable transportation solutions within Gamuda Land’s townships. Notably, the partnership will see the development of rooftop solar installations and green transportation infrastructure across three of Gamuda Land’s flagship townships—Gamuda Cove in Kuala Langat, Gamuda Gardens in Rawang, and twentyfive7 in Kota Kemuning—all located in the state of Selangor, with a completion goal set for 2024.
Thomas Baudlot, CEO Energy Solutions APAC and Country Head Southeast Asia at ENGIE South East Asia, expressed enthusiasm for the partnership, which stands as a testament to the power of collaboration in achieving sustainable development goals. The alliance aims to help Gamuda Land meet the ambitious sustainability benchmarks set by the Gamuda Green Plan, which includes a 30% reduction in carbon emissions intensity by 2025 and a 45% reduction by 2030.
Gamuda Land’s Chief Executive Officer, Chu Wai Lune, shared that the company’s townships are designed with a core objective—to attain at least a 30% overall reduction in carbon emissions compared to conventional designs. Gamuda Land continuously seeks out innovative and sustainable methods to enhance the eco-friendliness of its townships. This partnership with ENGIE not only reflects this quest but propels it forward, providing a launchpad for broader energy-efficient practices that dovetail with Gamuda Land’s carbon reduction initiatives.
The townships of Gamuda Cove, Gamuda Gardens, and twentyfive7 have already made remarkable strides in sustainability, earning five, four, and three-diamond recognitions, respectively, under the Malaysian Ministry of Natural Resources, Environment and Climate Change’s Low Carbon City Framework Design. Gamuda Cove, in particular, has the distinction of being the first private township to garner such recognition.
Earlier this year, ENGIE Services Malaysia and Gamuda Land formalized their dedication to sustainable development through the signing of an MoU in Kuala Lumpur. This MoU is not just a document but a pledge, symbolizing both entities’ shared vision and unwavering commitment to a low-carbon future. As Gamuda Land embarks on this ambitious journey with ENGIE, they are not merely constructing townships; they are shaping a better, greener future for generations to come, solidifying their role as pioneers in sustainable township development in Malaysia.
4. Lagenda Properties
Lagenda Properties Berhad is making significant strides in the Malaysian property market by championing the creation of sustainable and affordable townships. In a landmark partnership with Solarvest Holdings Berhad, a vanguard in clean energy solutions, they are poised to construct the largest sustainable affordable township in Malaysia, a testament to their commitment to eco-friendly development.
With the installation of 1,000 residential solar photovoltaic (PV) systems across three of its township projects in the state of Perak, Lagenda Properties is aligning with the Malaysian government’s NEM Rakyat programme, showcasing a blueprint for future residential projects. These solar-ready homes not only promise to drastically reduce the electricity costs for homeowners by generating up to 98% of their monthly energy usage but also underscore a shift towards a more responsible way of living.
The burgeoning appeal of solar-powered homes, spurred by a collective consciousness to reduce utility bills and carbon footprints, especially amidst the increasing prevalence of remote work, has been pivotal. The financial pragmatism of energy-efficient homes that may also appreciate in value only adds to their allure for the modern Malaysian homebuyer.
Lagenda Properties is responding to this paradigm shift by not just building houses but by fostering communities predicated on sustainable and eco-friendly principles. In partnership with Solarvest, the company is dedicated to designing, supplying, and commissioning solar solutions that epitomize the leading edge of green living.
The completion of these projects is anticipated to yield about 2.8GWh of clean electricity annually, potentially offsetting approximately 1,950 tonnes of carbon emissions each year. This venture is particularly significant as it aims to benefit the B40 and M40 income groups, ensuring that sustainability is not a privilege but a standard for all.
Dato Jimmy Doh Jee Ming, Managing Director of Lagenda Properties, emphasizes the company’s ethos of improving the quality of life affordably. The initiative was catalyzed by the spike in electricity bills during the MCO period, driving the company to seek alternative, sustainable solutions. By partnering with Solarvest, Lagenda Properties aims to harness economies of scale to deliver unparalleled value to its customers, reducing the cost of living while enhancing the desirability of its townships.
As a staunch supporter of the Energy Ministry’s NEM Rakyat programme, Lagenda Properties aspires to build a new sustainable township annually, harnessing Malaysia’s abundant solar resources to preserve nature’s legacy for future generations.
Echoing this vision, Mr. Davis Chong Chun Shiong, Group Chief Executive Officer of Solarvest, highlights the partnership as a milestone in property market expansion. It is a significant move towards granting communities direct access to green energy, fostering their participation in the net-zero movement from the comfort of their homes.
This initiative is not just a singular project but a model they hope to replicate with more developers, integrating solar energy into the very fabric of township development. This approach not only helps developers meet environmental objectives but also offers customers self-sufficient homes, marrying sustainability with innovation. It is a clear indication of Lagenda Properties’ and Solarvest’s shared commitment to paving the way for a renewable energy-driven world, setting a benchmark for the industry and contributing to a greener Malaysia.
Impact and Future Prospects
The concerted efforts of Malaysia’s leading property developers to integrate rooftop solar energy solutions herald a transformative shift in the country’s renewable energy landscape. The long-term impact of initiatives by companies such as Sime Darby Property, MK Land Holdings, Teladan Setia Group, Gamuda Land, and Lagenda Properties is poised to be profound and multifaceted.
Firstly, these initiatives signal a significant boost to the national grid’s sustainability. With the increase in solar energy contributions, there is an expected reduction in reliance on fossil fuels, leading to a substantial decrease in carbon emissions. This is in line with Malaysia’s ambition to reduce its greenhouse gas emissions intensity of GDP by 45% by 2030. The proliferation of solar-powered townships and homes also aligns with the global trajectory towards decarbonization and supports the country’s commitments under international climate agreements.
The scalability of these projects is promising. The successful implementation and replication of such solar energy projects could serve as a blueprint for other regions, not only within Malaysia but also in similar markets with conducive climates and economic conditions. The modular nature of solar PV systems makes them particularly amenable to scaling; they can be adapted to various sizes and types of developments, from small residential units to large-scale townships.
Moreover, these initiatives could inspire innovation in other sectors. As property developers demonstrate the economic and environmental benefits of incorporating solar energy into their projects, other industries may follow suit, leading to a more widespread adoption of renewables. This could spur advancements in related technologies, such as energy storage and smart grid solutions, further enhancing the efficiency and reliability of solar energy.
The replication of such projects could also lead to the creation of new markets and industries, generating employment opportunities in the green technology sector. It may also stimulate the development of local expertise in solar technology installation, maintenance, and innovation, contributing to the country’s economic diversification and resilience.
The property developers’ initiatives have the potential to set a precedent for the integration of sustainability in urban planning and construction. With the Malaysian government’s support, such as through the NEM Rakyat programme, these projects could serve as catalysts for a more eco-conscious approach to development across the nation.
Looking ahead, the intersection of governmental support, technological innovation, and corporate commitment suggests a bright future for renewable energy in Malaysia. The success of these projects could inspire similar initiatives in other ASEAN countries, contributing to a regional shift towards sustainable development. As these initiatives continue to unfold, they could position Malaysia as a leader in renewable energy within the region, setting a global example for sustainable development in emerging economies.
Conclusion
The foray of Malaysia’s top property developers into rooftop solar initiatives marks a crucial chapter in the nation’s renewable energy narrative. These pioneers—Sime Darby Property, MK Land Holdings, Teladan Setia Group, Gamuda Land, and Lagenda Properties—have each taken significant strides towards a more sustainable future, not just for their developments but for the entire country. Their commitments are tangible contributions that extend beyond the bounds of their respective townships and properties, seeding the ground for a broader adoption of green technology nationwide.
By integrating solar solutions into their developments, these companies have demonstrated that the property sector can be a driving force for environmental stewardship. They are proving that sustainability can be woven into the fabric of urban living, enhancing quality of life while mitigating environmental impact. These initiatives are cornerstones in the pursuit of Malaysia’s energy sustainability goals, showcasing the potential for the property sector to contribute meaningfully to the nation’s commitment to reducing its carbon footprint and embracing renewable energy.
As Malaysia continues to progress towards its vision of increasing renewable energy usage, the property sector has shown that it has both the capacity and the will to lead by example. The actions taken by these developers resonate with the country’s aspirations to transition towards a greener economy and a more resilient society. As we witness these developers’ projects come to fruition, they not only redefine the skyline but also reshape the prospects for renewable energy in Malaysia and beyond.
In conclusion, the collective initiatives of these property developers have set an inspiring precedent, underscoring the critical role the property sector plays in actualizing Malaysia’s energy sustainability ambitions. Their efforts are a clarion call for other industries to recognize their role in environmental conservation and to partake in the collective journey towards a sustainable future. As Malaysia advances on its path to a low-carbon economy, the endeavors of these property giants will likely be looked back upon as pivotal contributions that sparked a wider transformation.