Pay households, businesses to store power: Industry players

Malaysia's industry players argue that households and small businesses should receive financial incentives to store electricity and alleviate strain on the power grid. Noor Shahiwan, founder of Suncrox Solar, suggested that consumers who store excess energy and reduce their reliance on the grid during peak hours should be compensated for the wider benefits they provide to the power system.

Speaking at the 5th Solar Energy Storage Future Malaysia 2026 event, Shahiwan proposed incentives tailored to consumers' ability to decrease grid demand, rather than blanket incentives, as various households and businesses have different electricity usage patterns.

For example, small shops and offices operating primarily during daylight hours could use batteries to meet their power needs post-solar generation. Similarly, households could deploy stored solar power during evening peaks, lessening their dependence on the grid when demand surges. Shahiwan emphasized that such consumers not only manage their electricity costs but also contribute significantly to the overall power system.

The government could classify consumers based on their dependence on the grid and structure incentives accordingly, with greater rewards for those offering more flexibility through energy storage. This proposal coincides with Malaysia's rapidly changing electricity demand, driven by data centers, electric vehicles, and broader electrification. Solar generation, however, peaks during daylight hours, necessitating storage and other flexibility measures as renewable energy penetration escalates.

Shahiwan also highlighted that behind-the-meter storage could assist households on time-of-use tariffs in avoiding grid consumption during high-demand periods. He advocated considering energy storage alongside rooftop solar rather than as a standalone technology, emphasizing that storage and energy efficiency should be prioritized after rooftop solar as Malaysia seeks to address both electricity generation and consumption efficiency.

Financial incentives would be crucial for Malaysia to hasten the deployment of behind-the-meter storage, Shahiwan noted. While the government should not solely subsidize equipment, he stressed that policies should acknowledge the value consumers bring by reducing peak demand and enhancing the electricity system's overall flexibility.

Solaroo Systems Sdn Bhd co-founder and director Johann Sze echoed these sentiments, stating that battery storage is becoming an urgent requirement due to increased nighttime energy demand straining the grid. He added that the Large-Scale Solar Programme 6 (LSS6) is gradually incorporating battery storage, reflecting the growing need to balance renewable energy generation.

The LSS6 program aims to integrate 2,500MW of solar capacity with 1,250MW of battery storage, with projects slated for operation by 2029. Meanwhile, SOLS Energy's deputy chief executive officer, Jaran Walia, called for accelerated grid investment and a streamlined approval process for rooftop solar. He questioned whether Malaysia is investing swiftly enough in future grid requirements and highlighted the potential for optimization in the paperwork and end-to-end process for solar adoption, which could expedite the adoption timeline for consumers.