Sunview: Beyond A Great Investment for Your Company
Solar power - 10 years ago the tech was relatively new, expensive and difficult to obtain. In the present day, it has grown more affordable, the cost of production has gone down and harnessing the power of sunshine is becoming more accessible to most people in the world.
As more countries introduce policies that move away from coal power – a diminishing energy source which has continued to rise in cost – we can see a growing demand for clean energy. Not only for solar energy, but wind power, hydropower, bioenergy and so much more. This has led to an emergence of an ecosystem of businesses catering to these needs.
This is not only great news for eco-conscious people who want clean energy for their homes, but for businesses that want to reduce costs, achieve sustainability goals and help create a greener world.
Whether for small, medium or large enterprises, it’s now easier to embrace solar energy in day-to-day operations. We will touch more on this soon.
Before that, let’s focus on how this has impacted us closer to home. For companies looking to make headway in clean energy, whether to support their utility costs or as a business in itself, they can rest assured that the Malaysian government has been proactive in taking significant steps to pave the way for clean energy for the next generation. This can be seen in the latest policy changes. Recently, Malaysia has set an unambiguous target to reach a renewable energy (RE) capacity mix of 70% by 2050, a massive jump from its current goal of a 40% mix by 2035.
This new target is supported by policy reforms to encourage local and foreign investors alike to adopt RE. Notably, the lifting of the RE export ban (among other measures such as tax relief and green infrastructure support for government buildings) signals a promising shift. It will encourage future developments of an electricity exchange system for cross-border RE trading.
With a larger capacity for RE, it would be possible to exchange the surplus energy produced across borders with regional neighbours such as Singapore and Indonesia. This brings us closer to the realisation of the ASEAN power grid—a collaborative effort among the member countries of the Association of Southeast Asian Nations (ASEAN) to promote sustainable energy development and connectivity across the region.
With the government backing the way forward, Malaysia is poised to experience a remarkable upswing in domestic RE capacity in the next few decades.
WHAT DOES THIS MEAN FOR YOUR BUSINESS?
This shift towards renewable energy can benefit your business in several ways.
A new, growing industry: It will open more doors to an untapped market that is teeming with lucrative opportunities. Local and international investors will be more likely to set their sights on Malaysia's emerging clean energy sector. The potential returns are diverse and profitable - from substantial direct investments in renewable energy production infrastructure to funding the exploration of related technologies and services.
The investments made in these initiatives will have a ripple effect, acting as a catalyst for job creation and driving economic growth. As the demand for a skilled workforce rises, businesses will benefit indirectly from increased consumer demand, heightened productivity, and accelerated innovation and creativity.
These efforts aim to cultivate a robust and dynamic industry, positioning it as a green powerhouse of economic growth that businesses can readily tap into.
Closer to home, businesses can feel the immediate impact of adopting solar power as well.
Long-term cost-savings: Big businesses that consume a significant amount of energy can benefit from the CapEx model of solar power financing. This means purchasing and owning the Solar Energy System with an upfront investment. But in exchange, the company can enjoy long-term operational cost savings with free solar energy after the payback period is over, not to mention the double tax relief from Capital Allowance (CA) and Green Investment Tax Allowance (GITA) policies.
For smaller businesses, the OpEx model could be a better choice because it does not involve a big upfront cost. Instead, businesses make predictable monthly payments for solar energy, which are generally lower than Tenaga Nasional Berhad (TNB) electricity tariff costs, enabling even small to medium enterprises (SME) with limited capital to adopt more sustainable energy practices and all the ensuing perks.
The choice between solar financing models will depend on your business's specific needs and capacity. Find out more about available financing options for solar energy for your business here.
Enhanced brand reputation: Of course, beyond the more obvious financial benefits, embracing RE can enhance your business's reputation, especially as consumers, investors and stakeholders increasingly value companies that prioritise sustainability and environmental responsibility.
This is particularly evident among the younger generation. The eco-conscious Gen Z and millennial genuinely care about the environmental and the social impacts of their choices. As such they actively seek out brands that share their values and are committed to ethical practices. To them, supporting sustainably conscious companies is their way of making a positive impact and contributing to a better world.
With a reputation for strong ESG credentials, your company also becomes a more attractive business opportunity for investors. This is why building and maintaining a socially responsible reputation could put you ahead in today’s market, driving financial success and long-term growth for your organisation.
BEYOND BUSINESS GOALS: SAVING THE PLANET.
Imagine being able to power your operations with clean, renewable energy from the sun. Now you can do more than imagine, you can make it happen.
Embracing and investing in solar energy could be the impetus for the development and expansion of the RE sector. This would not only be a stimulant for the economy but the driving factor for community advancement, enhancing sustainability efforts.
As time goes by and solar power gains traction, the declining costs of solar materials enable more businesses and communities to reduce their reliance on fossil fuels while significantly lowering carbon emissions. This collective commitment to transitioning towards clean energy not only benefits the environment but also presents compelling opportunities for businesses to strengthen their bottom line, gain a competitive edge, and contribute to a brighter future for generations to come.
Thus, investing in solar energy means that the business can thrive while being a part of the solution to significantly reduce the world’s carbon emission, decrease humanity’s dependence on fossil fuels, and inspire others to follow suit.
Best of all, it will be a win-win solution for your business and the environment.
Becoming an industry leader
The benefits of going solar extend beyond financial gains and business opportunities. It has a profound impact on both people and the planet. It means economic growth and more job opportunities in the new industry, and the lasting impact of this trend could be a world that's cleaner, greener, and more sustainable for us all.
The potential for solar power in Malaysia is immense, given its geographic location within the Sunbelt that sees significant sun hours daily. It is time to seize this opportunity and take the first step towards a sustainable future today.
Connect with us to find out more about how you can harness the power of the sun with Sunview.
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