Large-scale solar aerial — illustrative of 40% RE target push
Utility-scale solar aerial. Photo: @draufsicht / Unsplash

Malay Mail reported in August 2025 that Malaysia was actively scaling up its Large-Scale Solar (LSS) deployment to support the 40% renewable energy target by 2035. The reporting tracked LSS6 preparations and the cumulative LSS pipeline through mid-2025. As installers, we don't compete in LSS tenders — but a healthy LSS pipeline means the residential and commercial supply chains we depend on stay competitive.

⚡ Key facts
  • 40% RE capacity by 2035 — NETR target
  • 70% RE by 2050 — long-term goal
  • LSS programme already at 6+ GW cumulatively approved across rounds 1–6
  • LSS6 prepared for ~2 GW additional in 2025–2026 round
  • Solar is the dominant technology in the RE target plan

Why solar specifically (not wind, not biomass)

Malaysia's RE mix tilts solar by geography and economics. Wind speeds across Peninsular Malaysia are modest (commercial wind is largely impractical), large hydro is mostly developed in Sarawak, and biomass scales linearly with feedstock supply. Solar — both utility-scale (LSS) and distributed (Solar ATAP) — has the cheapest LCOE, the largest deployable resource potential, and the most mature financing ecosystem. The 40% target is, in practice, a solar plan with hydro and biomass providing supplementary capacity.

What LSS scale-up means for the grid

Adding multi-GW of utility-scale solar reshapes the grid's daytime profile and creates demand for matching storage. See our coverage of the 4 GW solar-plus-storage deal and the BESS Malaysia 2026 guide. The Energy Commission's MyBEST tender for 400 MW / 1,600 MWh of grid-scale storage is the direct policy response — pairing solar generation with absorption capacity to keep the grid stable.

What this means for your rooftop install

Utility-scale solar deployment doesn't directly change rooftop economics, but it cements the regulatory direction. Malaysia is firmly committed to solar as the workhorse RE technology for the next decade. For rooftop customers, this means the policies supporting Solar ATAP, NEM legacy contracts, and the SuRIA Home rebate sit inside a multi-decade plan — not short-term experiments that might be cancelled at the next budget cycle.

Source

This summary is based on reporting from Malay Mail. Read the full original report at the source link for the publisher's complete coverage.

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