Green energy looking sunny, says solar firm boss
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PLUS SOLAR SYSTEMS is upbeat about its green energy business with the prices of solar panels falling and more factories looking at cutting down energy costs.
The specialist in solar power solutions expects its business to grow by 20 per cent this year, as more commercial premises turn to the power of the sun to reduce the cost of doing business.
Executive director Ko Chuan Zhen says the company is confident about growth due to new market penetration in states like Penang and Johor.
There, large manufacturing concerns are seeking to cut operating costs.
“With footprints in these states, we expect our market share to exceed 15 per cent by the end of the year, compared to less than 15 per cent currently,” he says.
A commercial premise can save 10-70 per cent of their operating cost by turning to solar power, depending on the size of the roof area and power consumption, according to Ko.
A roof area of 8,000-38,000 square feet requires around 500,000 ringgit (Bt4.2 million) to 2.5 million ringgit in investment to fit in solar panels.
“Based on the savings of 30 sen and 50 sen, such a company could recover its investments in six to seven years,” Ko adds.
Up to the end of last year, Solar Plus had in total installed solar panels with a combined capacity of 27 megawatt peak (MWp).
“About 80 per cent of our projects are from the commercial sector, including solar farms, industrial properties and commercial buildings with Green Building Index certificates.
“Some 20 per cent of our projects are from the residential segment,” he says.
Demand for solar power comes mainly from the Klang Valley, Johor, Penang and Kedah.
“The residents in these areas are more willing to invest in new, cost-saving technologies.
“These are also areas with the most manufacturing facilities requiring high energy consumption,” Ko adds. The price of solar cells has dropped by over 85 per cent worldwide since 2008, due to the injection of fresh capital to boost capacity to meet rising demand, he says.
“The increase in solar cell production capacity has led to prices decreasing by about 20 per cent annually.
“The Asia-Pacific region is now a strong emerging market for solar power, as large manufacturing companies are adopting solar energy to drive down substantial operational cost,” he adds.
The biggest challenge for Plus Solar is creating awareness among factory operators regarding incentives.
“Most of them are not aware that the federal government has an incentive programme that gives a rebate amounting to 25 per cent of the investment cost for green technology.
“The incentive is called a green investment tax allowance, which is offered by the Malaysian Investment Development Authorities,” he says.
The company also wants to help power producers set up solar power plants throughout the country.
“The federal government’s goal is to produce about 1.5GWp of solar energy by the end of 2020. The 1.5GWp of solar energy is equivalent to the daily energy usage of 300,000 houses,” he says.
Ko is also eyeing the regional market.
“The consumption of solar power is also growing in other Asean countries like the Philippines, Indonesia and Vietnam, where they have recently launched their respective feed-in tariff programmes.
“We hope to tap into these overseas markets in three years,” he says.
Plus Solar’s strategy is to do more than just installation. It also wants to focus on providing turnkey solar services, comprising financial solutions, engineering, procurement, construction and commissioning services for residential, commercial, industrial and utility projects.
