According to figures from GlobalData, Malaysia is on track to reach 29.7 GW of solar capacity by 2035.
The consultancy expects solar capacity in Malaysia to rise from 5.8 GW at the end of last year to 7.3 GW at the end of this year, an increase of 1.5 GW.
According to the analysis, solar deployment is expected to reach 1.9 GW next year, before annual deployment increases to 2.4 GW to 2.7 GW per year until 2035.
This trajectory would see Malaysia surpass 10 GW of solar power by 2028 and 20 GW of solar power by 2032, leaving the country with just under 30 GW by the end of 2035.
Solar energy is responsible for the majority of Malaysia’s renewable capacity. GlobalData’s analysis predicts that the country’s total renewable fleet will increase from about 6.9 GW in 2025 to about 31.5 GW by the end of 2035.
At this growth rate, Malaysia would surpass the 2040 National Energy Policy target for a renewable energy capacity of 18.43 GW by 2031, nine years in advance. GlobalData attributes the progress to Malaysia’s large-scale solar procurement, strong policy framework, accessible financing and rapidly improving network integration and storage capacity.
Sudeshna Sarmah, Power Analyst at GlobalData, noted that Malaysia’s energy investment portfolio was increasingly tilted towards renewables between 2020 and 2025.
“Solar PV has seen robust and steady growth, with capital allocations increasing by approximately $2.1 billion by 2025. Investments in hydropower and bioenergy remain modest but are gradually increasing, they are still small compared to solar,” Sarmah said.
“Looking ahead to the period 2026 to 2030, solar energy is expected to dominate the renewable energy investment landscape. Gas will continue to play a supporting role, with investments in balancing and peaking capacity expected to range between US$0.2 and US$0.6 billion annually.”
Attaurrahman Ojindaram Saibasan, Power Analyst at GlobalData, explains pv magazine that Malaysia could further support its solar market by expanding tax incentives and green financing instruments beyond 2026, so that investors and developers feel more secure.
“Introducing feed-in tariffs, especially for smaller, remote or off-grid projects, could really help bring solar power to places where the grid is not strong,” he also suggested. “Raising export rates to match when the grid needs the most energy, using time of use or dynamic pricing, would reward people who shift their solar production to peak times.”
Saibasan added that supporting energy storage with subsidies or tax breaks will be key, as will faster approvals for grid connections and clearer roadmaps showing where the grid can handle more solar energy to reduce bottlenecks.
Saibasan also suggested that local production of solar panels and related components would boost supply chains and create jobs, while investments in research and development in floating solar, agricultural voltaics and integrated roof systems could open new frontiers.
“Having stable, transparent regulations and good standards for equipment and installers would build trust, while targeted programs for rural or underserved areas would help make the shift to solar energy more inclusive for all,” he said. pv magazine.
Last month, the Malaysian government announced a new rebate scheme for home solar installations, offering a rebate of 600 MYS ($151.27)/kWac, up to a maximum of 3,000 MYS per household for a 5 kWac system.
