Malaysia has taken a bold step forward in its renewable energy transition with the launch of the Community Renewable Energy Aggregation Mechanism (CREAM) — the nation’s first rooftop solar aggregation scheme. Spearheaded by the Ministry of Energy Transition and Water Transformation (PETRA), the initiative unlocks a new model for decentralized solar power generation by enabling homeowners to lease their rooftop space to third-party developers.
Under the CREAM framework, approved by the Energy Commission, electricity generated from rooftop solar systems can be sold to nearby residential and commercial users within a 5-kilometer radius. This hyper-local model is designed to promote community-based clean energy while supporting grid stability and avoiding additional infrastructure costs.
At the heart of the initiative are Local Energy Generators and Aggregators (LEGA) — entities responsible for installing and managing rooftop solar systems across clusters of residential properties. LEGA also handles leasing agreements with homeowners, offering them a way to monetize unused roof space while contributing to national climate goals.
Power generated through the program is delivered via the existing distribution network operated by public utility Tenaga Nasional Berhad (TNB). TNB will also implement localized grid balancing measures to mitigate the intermittency of solar power and maintain reliable electricity supply.
The CREAM initiative is grounded in the principle of open grid access. PETRA emphasized that the program is designed to be cost-neutral to the broader electricity system and will not trigger any tariff hikes for consumers. This approach ensures the initiative is both sustainable and economically viable.
“This program is a catalyst for our energy transition,” PETRA said in a statement. It aligns with Malaysia’s strategic goal to increase the share of renewables in its energy mix — targeting 40% of installed capacity by 2035 and 70% by 2050.
CREAM follows closely on the heels of the Corporate Renewable Energy Supply Scheme (CRESS), launched in September 2024, which allows businesses to procure green electricity directly from renewable energy developers via the national grid. Earlier this year, the government also opened a new tender under its Large-Scale Solar (LSS) program, reinforcing its push toward a low-carbon future.
According to the International Renewable Energy Agency (IRENA), Malaysia’s cumulative installed solar capacity reached 2,306 MW by the end of 2024 — an increase from 2,146 MW in 2023. With initiatives like CREAM, that figure is expected to rise significantly in the coming years as rooftop solar becomes a key pillar of the nation’s renewable strategy.
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