Malaysia Just Crossed 5.7 GW of Solar Power — What’s Driving It
Category: News & Regulation
In short:
- Malaysia hit 5,777 MW of installed solar capacity in 2025 — up from 4,329 MW the year before.
- Rooftop solar (homes and businesses) played a big role in that growth.
- The next wave is coming from utility-scale projects like LSS6, the largest solar tender Malaysia has ever run.
The headline number
By the end of 2025, Malaysia had 5,777 MW of solar power installed nationwide; up from 4,329 MW just a year earlier. That’s roughly 1.4 GW added in a single year, which is a serious jump by any measure.
What’s been driving the growth
- Rooftop adoption — more homes and businesses installing their own solar, especially before NEM was replaced by Solar ATAP in January 2026.
- Utility-scale tenders — ongoing rounds of the Large Scale Solar programme, adding big chunks of capacity at once.
- Business demand — more companies choosing solar to protect themselves against rising electricity costs.
The bigger target
All of this sits under Malaysia’s national energy plan, which aims for renewable energy to make up 40% of installed capacity by 2035 (up from a 31% target for 2025). Solar carries a large share of that ambition, alongside hydropower.
What’s coming next
2026 is shaping up to be a turning point. LSS6, the largest solar tender Malaysia has ever run, is opening right now, offering 2,650 MW of new solar capacity paired with mandatory battery storage for the first time. Where the last few years were largely driven by rooftop growth, this next wave is coming from big, utility-scale projects instead.
Why this matters if you’re thinking about solar
A growing market usually means more competition, but it also means more experienced developers, more financing options, and a more established track record to rely on than existed even two or three years ago. If you’ve been on the fence about a solar project or a corporate power agreement, the market has genuinely matured since you last looked at it.
Sources
- Makreo Research and Consulting — Malaysia Solar Energy Market 2026
- MIDA — National Energy Transition Roadmap (NETR)
- SEDA Malaysia — Malaysia Renewable Energy Roadmap (MyRER)