Malaysia's Solar PV Capacity Projected to Exceed 6.5 GW by 2029 Due to LSS6 and CRESS Initiatives
UOB Kay Hian forecasts Malaysia's solar photovoltaic capacity to surpass 6.5 GW from 2026 to 2029, driven by the Large-scale Solar 6 program and the Corporate Renewable Energy Supply Scheme. The total EPCC market opportunity could reach MYR 13-23 billion over five years, with a projected 28% earnings CAGR from 2026 to 2028. However, rising solar module prices due to material costs and policy changes in China could impact project expenses, despite a strengthening Malaysian ringgit providing some relief.
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UOB Kay Hian projects Malaysia's solar photovoltaic capacity to exceed 6.5 GW between 2026 and 2029, supported by the Large-scale Solar 6 program and Corporate Renewable Energy Supply Scheme. The anticipated construction costs for solar projects are estimated between MYR 2 million and MYR 3.5 million per MW, resulting in an EPCC market opportunity of MYR 13 billion to MYR 23 billion.
The sector is expected to achieve a 28% earnings CAGR from 2026 to 2028. However, increased solar module prices, driven by rising raw material costs and policy changes in China, could impact project costs. The Malaysian ringgit's appreciation may help mitigate these pressures.
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