The Federation of Malaysian Manufacturers (FMM) has urged the government to reassess regulatory requirements concerning battery energy storage systems (BESS) and monthly standby charges under the self-consumption (SelCo) programme for solar energy users.
FMM has raised concerns regarding two specific provisions: the mandatory inclusion of BESS for non-domestic solar users exceeding 72kWp (kilowatt peak) and the imposition of a monthly standby charge of RM14/kWp. The federation argues that these stipulations impose a significant financial burden on businesses seeking to adopt solar power.
Industry Concerns Over Cost and Feasibility
Industrial stakeholders contend that the RM14/kWp standby charge is excessive and warrants reconsideration. According to FMM, solar photovoltaic (PV) systems typically generate power for only 3.5 hours daily, necessitating reliance on grid electricity for the remaining hours. The federation posits that this limited generation capacity does not justify such a high standby fee.
Furthermore, the BESS requirement—mandating a storage capacity of 1kWh for every 1kWp of solar PV—could inflate SelCo installation costs by at least 40%, making the transition to renewable energy significantly more expensive for businesses.
Call for a Balanced Approach
While acknowledging the advantages of BESS, FMM advocates for a more flexible approach. It suggests that BESS installation be made optional, allowing businesses to choose between paying a reasonably adjusted standby charge or investing in storage solutions to gain exemption from the fee.
Government Engagement and Policy Implications
These industry concerns were formally presented during recent discussions with the Energy Commission (ST) and the Ministry of Energy Transition and Water Transformation (PETRA). FMM has called upon the government to consider these recommendations swiftly to ensure that Malaysia’s renewable energy policies remain both practical and economically viable.
“The successful adoption of the SelCo programme should support broader access to green electricity for corporate and industrial consumers, align with environmental, social, and governance (ESG) commitments, and contribute to Malaysia’s renewable energy target of a 70% capacity mix by 2050,” the federation stated.
As Malaysia positions itself as a regional leader in energy transition, a well-calibrated policy framework is essential to balancing economic feasibility with sustainability. The industry now looks to policymakers for a pragmatic response that encourages greater adoption of solar energy without placing undue financial strain on businesses.
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