Malaysia Gears Up for Major Solar Expansion in 2025

Malaysia has entered 2025 with a bold move to scale up solar energy, launching a 2 GW utility-scale solar tender, including a dedicated 500 MW allocation for floating solar projects. This marks a significant leap for a country that had just 2 GW of installed solar capacity in 2024, according to energy think tank Ember.

While Malaysia has supported solar power for over a decade—introducing its feed-in tariff in 2011 and net energy metering in 2016—momentum is now accelerating. The government is targeting 40% renewable energy in its power mix by 2035, and several new initiatives are driving that push.

New Policy Tools

In July 2024, the Ministry of Energy Transition and Water Transformation (PETRA) launched the Corporate Renewable Energy Supply Scheme (CRESS) to boost corporate uptake of green energy. Active since September, CRESS replaces the earlier Corporate Green Power Purchase Program (CGPP). Unlike CGPP, which only allowed virtual PPAs, CRESS enables companies to sign direct power purchase agreements with renewable energy developers.

On the residential side, PETRA also introduced the Community Renewable Energy Aggregation Mechanism (CREAM) in February 2025. This program allows homeowners to lease their rooftops for solar installations, opening up new opportunities for community-level participation in clean energy.

Major Investment from National Utility

Reflecting the growing urgency of the energy transition, Malaysia’s national utility Tenaga Nasional Berhad (TNB) announced in April 2025 that it will more than double its capital expenditure to MYR 42.8 billion (USD 10 billion). The increased investment will help address the infrastructure and generation challenges tied to clean energy expansion. TNB supplies power to Peninsular Malaysia and also operates in Sabah, located on the island of Borneo.

With strong policy backing and rising investment, Malaysia is positioning itself for rapid solar growth in the coming years.