Malaysia Solar Energy Market and Forecast to 2031 - Analysis by Application (Utility, Residential, Commercial), System Type (Ground-Mounted Solar, Rooftop Solar, Floating Solar), Connection Type (On-Grid, Off-Grid), and Geography

Malaysia Solar Energy Market Size

The Malaysia solar energy market has expanded steadily in recent years, supported by strong government policy frameworks, rising electricity demand, and increasing adoption of renewable energy across commercial, industrial, and residential segments. Policy instruments including the Net Energy Metering programme and Large-Scale Solar programme have been central to accelerating solar deployment across the country.

Malaysia currently holds approximately 1.75 GW of installed rooftop solar capacity, reflecting sustained adoption particularly within the commercial and industrial solar energy segment, and reinforcing solar power's role as a primary contributor to the country's energy transition objectives.

Key Drivers Shaping the Malaysia Solar Energy Market

Several structural, policy-driven, and economic factors are accelerating growth across the Malaysia solar energy market:

• Rising Urbanisation and Electricity Demand Driving Solar Adoption: Malaysia's urban population is projected to increase from 75.1% in 2020 to 79.3% by 2030, adding approximately 4.5 million people. This demographic expansion is expected to drive higher electricity consumption and accelerate demand for solar PV systems across residential, commercial, and utility-scale solar segments in Malaysia.

• Corporate Renewable Energy Adoption Supporting Market Growth: Growing participation from global corporations is reinforcing solar deployment across Malaysia. Google's 29.99 MW solar power purchase agreement supporting data centre decarbonisation reflects broader green energy adoption in Malaysia and aligns with the country's target of achieving 70% renewable energy by 2050 under the Corporate Renewable Energy Supply Scheme.

• Supportive Government Policies Accelerating Solar Capacity Expansion: Policy instruments including Net Energy Metering, Large-Scale Solar, and the National Energy Transition Roadmap are driving capital investment and encouraging solar adoption across utility, commercial, and industrial segments. The Solar Accelerated Transition Action Programme further reinforces Malaysia's renewable energy policy commitments and long-term solar capacity expansion targets.

• Declining Solar Costs and Improving ROI Enhancing Adoption: Falling solar panel prices and improving system efficiencies are making solar installations more cost-effective, improving ROI and accelerating adoption, particularly in the commercial and industrial segment.

Malaysia Solar Energy Industry Insights

Malaysia Solar Energy Market Growth - Capacity Expansion and Policy-Driven Adoption

The Malaysia solar energy market is recording strong growth momentum, supported by continuous capacity additions, favourable government policies, and rising electricity demand across residential, commercial, and utility-scale solar segments. Market revenue has expanded from approximately MYR 2 to 3 billion in the early period to an estimated MYR 5 billion in 2026, reflecting a robust double-digit growth trajectory across the Malaysia solar PV market.

Malaysia's strategic focus on energy transition and decarbonisation, combined with declining solar panel costs and improving project economics, is reinforcing solar power's position as a primary contributor to the country's future renewable energy mix and long-term capacity targets.

Malaysia Solar Energy Market - Leading System Type by Market Share

Ground-mounted solar systems dominate the Malaysia solar energy market by system type, accounting for approximately 55 to 60% of total market share, supported by large-scale utility deployments under government-led programmes including the Large-Scale Solar programme. Rooftop solar is emerging as the primary growth segment, representing approximately 30 to 35% of the market, driven by increasing adoption across residential, commercial, and industrial users under supportive policy frameworks including Net Energy Metering.

Strategic Investments and Developments in the Malaysia Solar Energy Market

Recent project awards, corporate commitments, and strategic partnerships reflect accelerating activity across the Malaysia solar energy competitive landscape.

• Solarvest Holdings Berhad - On 18 March 2026, Solarvest Holdings Berhad secured appointment for the 36 MWac LSS PETRA 5+ solar project in Malaysia, reinforcing its position in large-scale renewable energy development within the Malaysia solar energy market.

• Sols Energy Sdn. Bhd. - In 2026, Sols Energy is targeting solar adoption across 285,000 Malaysian households, supporting national decarbonisation goals and improving energy accessibility across residential segments of the Malaysia solar energy market.

• Verdant Solar Holdings Berhad - On 7 November 2025, Verdant Solar Holdings Berhad entered into a Memorandum of Understanding with Montfort Youth Training Centre and Sabah Entrepreneurs Transformation to support community development and entrepreneurial capacity-building initiatives aligned with the company's broader social responsibility strategy.

• Plus Xnergy Services Sdn. Bhd. - On 16 August 2025, Plus Xnergy Services Sdn. Bhd. secured a MYR 95 million solar project contract with Nefin V Power for the development of a 29.99 MW solar PV plant, encompassing procurement and EPC services under Malaysia's Corporate Green Power Programme.

Funding Activity in the Malaysia Solar Energy Market

• In 2025, Founder Group secured approximately USD 2.6 million through project financing and contract-backed funding to support rooftop solar EPC execution and strengthen long-term O&M revenue streams in Malaysia.

• In 2025, Founder Group entered a strategic investment pipeline through an MoU with GCL, allocating an estimated MYR 10 million to co-develop renewable energy projects across Malaysia and the broader ASEAN region.

• In 2024, Xurya raised around USD 55 million in growth funding from multiple investors to expand solar deployment and accelerate regional market presence, including Malaysia.

Scope of the Study for Malaysia Solar Energy Market

Makreo Research has published the report titled "Malaysia Solar Energy Market and Forecast to 2031 - Analysis by Application (Utility, Residential, Commercial), System Type (Ground-Mounted Solar, Rooftop Solar, Floating Solar), Connection Type (On-Grid, Off-Grid), and Geography", providing a structured and comprehensive evaluation of Malaysia's solar energy ecosystem. The report covers historical performance, current market dynamics, and future growth outlook across the Malaysia solar PV market.

The report begins by assessing the overall development of Malaysia's solar energy sector, examining key structural elements shaping the Malaysia solar energy market and the evolving role of solar power within the country's broader renewable energy mix.

Revenue and Category Analysis

The report opens with a detailed assessment of the Malaysia solar energy market revenue, analysing historical trends alongside current market size and growth trajectory. It presents a comprehensive segmentation analysis highlighting demand patterns and structural distribution across application, system type, connection type, and geographic regions within Malaysia.

Pricing Analysis and Government Initiatives Assessment

• The study evaluates Malaysia's solar energy market across key cost components, including solar panel pricing trends, installation costs, and overall system cost structure. Pricing dynamics are examined in the context of module costs, import dependencies, and technological advancements shaping the cost competitiveness of solar energy deployment across the country.

• The report also provides a detailed assessment of key government policies and initiatives including Net Energy Metering, the Large Scale Solar programme, Feed-in Tariff, and the Malaysia Renewable Energy Roadmap, evaluating their collective impact on capacity expansion, project viability, and investor participation across Malaysia's solar energy market.

Malaysia Energy Market Analysis

• The report analyses Malaysia’s broader energy landscape, including electricity generation, consumption patterns, and capacity mix across conventional and renewable sources. It evaluates solar’s role within the national energy transition, supported by rising electricity demand, decarbonisation goals, and policy-driven renewable adoption.

• Additional insights cover energy reliability indicators, demand trends, and future energy scenarios aligned with national targets such as the 1.5°C pathway and long-term renewable energy capacity goals.

Competitive Landscape and Key Players

• A dedicated section benchmarks leading solar energy companies in Malaysia based on installed capacity, project portfolio, technological capabilities, geographic presence, and strategic positioning.

• Detailed company profiles highlight business overview, financial performance, project pipeline, partnerships, and expansion strategies of key players.

• The report also evaluates mergers, acquisitions, investments, and funding activities shaping the competitive dynamics of the Malaysia solar energy market.

Future Outlook and Strategic Considerations

• The report concludes with forward-looking projections of the Malaysia solar energy market, covering revenue growth, capacity additions, and evolving market trends through the forecast period.

• Key growth opportunities are identified across policy support mechanisms, infrastructure expansion, and emerging solar technologies, alongside challenges including grid constraints, pricing pressures, and supply chain risks expected to influence the market's future trajectory.

Malaysia Solar Energy Market Segmentation

Geography Assessed

Companies Covered in the Malaysia Solar Energy Market

The study covers a total of 13 Malaysia Solar Energy Market companies. To know more, please reach out to [email protected]