From Solar EPC to Recurring Power Sales: How Malaysia’s Renewable Market Is Changing

Malaysia’s renewable energy market is entering a new phase as solar generation, battery energy storage systems (BESS), and corporate renewable energy procurement increasingly converge.

Solarvest Holdings Bhd is targeting an RM5 billion order book over the next year, while the broader Malaysian solar-plus-BESS ecosystem could represent around RM15 billion in contracts and investment value.

The development highlights a broader shift in Malaysia’s renewable energy market — from simply adding solar capacity toward building a more flexible power system supported by energy storage and corporate access to renewable electricity.

☀️ Solarvest Targets RM5 Billion Order Book

Solarvest executive director and group CEO Datuk Davis Chong Chun Shiong said the company aims to expand its order book to:

RM5 billion

over the next year.

The company also expects to convert nearly half of its existing order book into revenue during FY2027.

Solarvest currently has an unbilled EPCC order book of:

RM2.37 billion

which is expected to be progressively recognised during the financial years ending March 2027 and 2028.

The company's latest quarterly performance also reflects continued demand.

For the first quarter of FY2027:

• Revenue: RM155.94 million

• Net profit: RM19.02 million

• Net profit margin: 12.2%

• EPCC revenue: RM139 million

• EPCC share of revenue: 89.1%

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The company's performance was primarily supported by the Large Scale Solar 5 (LSS5) programme, Corporate Green Power Programme projects and increased contributions from associate companies.

🔋 Malaysia Is Moving Into the Solar + BESS Era

According to Solarvest, Malaysia is now entering what it describes as the:

“solar-plus-BESS era”

with an estimated:

RM15 billion

in contracts and investment value.

This represents an important development for Malaysia's electricity system.

As solar deployment increases, particularly under large-scale solar programmes, the ability to store excess daytime generation and release electricity when demand rises becomes increasingly important.

BESS therefore moves beyond being simply an additional component of solar projects.

It is becoming part of the infrastructure required to integrate higher levels of renewable generation into the grid.

⚡ CRESS Could Further Expand Corporate Renewable Procurement

Another major growth driver could come from the Corporate Renewable Energy Supply Scheme (CRESS).

Solarvest expects new CRESS contracts in the second half of its financial year to accelerate:

Third-party grid access → Corporate renewable procurement → Renewable electricity demand

This could create a larger market for companies seeking to secure renewable electricity without relying exclusively on conventional electricity supply arrangements.

💰 Corporate Renewable Energy Is Becoming a Recurring Revenue Opportunity

Solarvest's clean energy generation business is also expanding.

Electricity sales increased:

25.8% YoY

to:

RM9.6 million

The company has secured an aggregate capacity of:

135 MWp

through multiple corporate power purchase agreements under its Powervest pipeline.

Once fully completed over the next 12–18 months, the projects are expected to generate approximately:

RM54.4 million in annual recurring revenue

This points toward an increasingly important shift in Malaysia's solar market.

The opportunity is no longer limited to:

Solar EPC → Project completion → One-off revenue

but is gradually expanding toward:

Solar + BESS + Corporate PPA → Long-term electricity sales + recurring revenue

🔎 What This Means for Malaysia's Solar Market

The significance of Solarvest's RM5 billion target extends beyond one company's growth strategy.

Three market trends are developing simultaneously:

1️⃣ LSS is continuing to expand large-scale solar deployment

2️⃣ BESS is becoming an increasingly important part of the country's renewable energy infrastructure

3️⃣ CRESS is opening additional pathways for corporate renewable electricity procurement

Together, these developments could significantly expand Malaysia's renewable energy investment pipeline.

The key question is therefore shifting from:

“How much solar can Malaysia build?”

to:

“How much solar-plus-storage capacity can Malaysia integrate while creating commercially viable access to renewable electricity?”