Questions You Should Ask Your Solar EPCC Solutionist for Your Factory

5 May 2022

Making the switch to clean energy can be very daunting if your business is new to the subject but it does not need to be, especially if you ask the right questions.  

Clean energy has been making more headlines than usual for enabling companies to maintain a competitive advantage with partners, investors and vendors, while decarbonizing energy and making massive climate contributions.   

With the rush to accelerate the energy transition for your business, as a clean energy solutionist of over 10 years, let us walk you through the right questions to ask your clean energy solutionist when making the switch towards a more sustainable future.  

1. How does the solar PV system work for my building?   

Solar photovoltaic (PV) panels are made up of PV cells that are connected electrically to generate energy directly from the sunlight. Made from silicon semiconductors, solar PV panels can provide enough power for commercial and industrial buildings, as well as solar farms. After installation and commissioning of the solar PV system have been completed, this system will generate energy from the sunlight, minimizing your building’s energy consumption as well as energy cost that will be reflected in your upcoming energy bill. 

2. Are there any clean energy policies in Malaysia that will benefit my business?   

The NEM or Net Energy Metering scheme allows owners of a solar photovoltaic (PV) system to export excess generated energy to the distributor license -TNB. The excess energy can be put to good use by generating credits to offset the monthly electricity costs. For NEM Rakyat and GoMen, these credits are eligible for a rollover of up to 12 months but cannot be compensated in the form of cash.  

This current NEM scheme allows the solar energy generated to be consumed by your building first and the excess energy will be exported into the national grid to offset your TNB bill. For system owners under NEM 2.0, NEM Rakyat and NEM GoMEn, the excess energy will be recorded in credit form by a bi-directional meter and the energy credit will then be offset on a “one-on-one” basis per kWh unit. On the other hand, for system owners under Program Nova, the excess energy will be exported at the SMP. This move serves to benefit owners by allowing more economic benefits in the exportation of energy. The NEM scheme is only applicable in Peninsular Malaysia.  

Your business can apply for this scheme if:  

  • Eligible Consumer: One who is a consumer of the Distribution licensee who has not been blacklisted in its system for reasons such as not paying the electricity bill, committing an offense and more.  

  • Registered Consumer of the Distribution Licensee in Peninsular Malaysia only.  

  • Not a delinquent who has not paid their bills or a pending meter tampering case.  

  • Subscribers of the following tariff:  
    • Industrial  
    • Commercial (Including government-owned structure)  
    • Residential/ Domestic  
    • Agricultural  

  • Electricity shall only be generated from solar photovoltaic (PV). Other forms of renewable energy such as biogas, biomass or micro-hydro may be allowed by the Commission on a case-by-case basis.

The NEM policy is only applicable in Peninsular Malaysia, to understand more, visit the Policy page.  

Source: Sustainable Energy Development Authority (SEDA) Malaysia 

3. What are the financing options for the solar PV system?  

  • Outright   

Under outright purchase, business owners have the option to self-fund or get working capital from financial institutions (FIs).  

FIs have made working capital available for businesses that are interested in adopting solar solutions. The working capital can cover up to 100%* of the cost to purchase and install a solar photovoltaic system, relieving businesses of upfront costs. These loans would enable the business owners who are adopting these solutions to own the systems and have advanced private sector participation, mainly in the manufacturing, industrial, and services industries, to invest in green technology and clean energy. 

  • Zero CAPEX Solar Power Purchase Agreement (PPA) 

The solar PPA is an ideal option for businesses that would like to preserve cash flow and obtain sustainable energy. This PPA is a lease-to-own solar financing model that does not involve CAPEX spending on part of the adopter where businesses can gain recurring and reduced electricity tariffs at no upfront capital expenditure (CAPEX) over a 15–20-year lease-to-own tenure. Once mature, business owners take full ownership of the solar setup from the investor and its savings benefits. 

Aimed at optimizing cash flow, adopters enjoy lower electricity tariff rates, saving on their monthly TNB bills.  

For more, visit our previous blog post on Solar PPA.  

4. How long is the installation process? 

Your solar PV system can be completed as early as 6 months, especially when you adopt it for your business now so you can enjoy tax allowances of up to 48% upon investing in solar energy. Yes, that’s right, as early as 6 months!  

5. What are the maintenance methods and costs associated with the solar PV system?  

Operation and Maintenance (O&M) services are included as part of your solar for business solution.  

Under outright, you would receive complimentary O&M services for three (3) years. ** If you have purchased the solution under zero CAPEX solar PPA, the O&M services would be covered within the tenure period.  

Be sure to check with your solutionist on whether the following factors are included in the post-solar installation package:  

  1. Remote Monitoring of the Energy Generated by Your System    

  1. Product Warranties     

  1. Defect(s) Liability Period (DLP) - Duration, Scope, Exclusions & More 

  1. Preventive Maintenance Service & Solar Panel Cleaning 

Clean Energy for Your Business and the Future 

With some of your questions answered about what your corporate clean energy journey will look like, we hope this brings further clarity to how your business can move towards a more sustainable future.  

Due to the United Nation’s Intergovernmental Panel on Climate Change’s (IPCC) report, it was revealed that time is running out to shift and limit global warming, despite the accelerated adoption of solar, wind and battery storage. With calls for immediate actions to accelerate carbon emissions reduction across all economic sectors globally are required, as well as enhanced sustainability reporting and climate-related disclosure among listed issuers, businesses play a crucial role in accelerating the energy transition, leading to a higher demand for the deployment of clean energy.  

Make the switch to clean energy for your business simple and hassle-free with a clean energy solutionist who takes care of everything from local authority liaison to the completed system.  

To inquire more about this solution for your business, contact us at [email protected]  
*Varied by Financial Institutions. Terms and conditions apply.  
** This package differs on a case-by-case basis.  

Power Your Business With Clean Energy