Malaysia Renewable Energy Market (2025-2031) | Outlook, Forecast, Trends, Revenue, Growth, Size, Share, Analysis, Companies, Industry & Value

Malaysia Renewable Energy Market Growth Rate

According to 6Wresearch internal database and industry insights, the Malaysia Renewable Energy Market is projected to grow at a compound annual growth rate (CAGR) of 7.10% during the forecast period (2025-2031).

Five-Years Growth Trajectory of the Malaysia Renewable Energy Market with Core Drivers

Below mentioned are the evaluation of year-wise growth rate along with key drivers:

Topics Covered in the Malaysia Renewable Energy Market Report

Malaysia Renewable Energy Market report thoroughly covers the market by technology type and end-user type. The market report provides an unbiased and detailed analysis of ongoing market trends, opportunities/high growth areas, and market drivers, which would help stakeholders devise and align their market strategies according to the current and future market dynamics.

Malaysia Renewable Energy Market Highlights

Malaysia Renewable Energy Market Synopsis

The Malaysia Renewable Energy Market is poised for strong growth, driven by national decarbonisation goals, competitive solar levelised costs, and expanding corporate demand for green electricity. Policy enablers such as the National Energy Transition Roadmap (NETR), Net Energy Metering (NEM 3.0), and the Corporate Green Power Programme (CGPP) are accelerating new capacity, while grid modernisation and battery pilots improve system flexibility. Rising electrification in industry and transport, along with increasing investor appetite, is strengthening Malaysia’s pipeline across Peninsular Malaysia, Sabah and Sarawak.

Evaluation of Growth Drivers in the Malaysia Renewable Energy Market

Below mentioned some growth drivers and their impact on market dynamics:

Malaysia Renewable Energy Market is expected to grow significantly, with a CAGR of 7.10% during the forecast period of 2025-2031. The market is expected to grow continuously, driven by clear transition policies, competitive auction mechanisms, and strong private-sector green power adoption. Malaysia Renewable Energy Market Growth is further propelled by rapid expansion of rooftop and utility-scale solar, grid reinforcement, and early-stage storage projects. Increasing electrification of industries and innovative financing models are accelerating renewable integration across Malaysia’s industrial zones and urban centres, strengthening the nation’s clean energy transition and long-term sustainability objectives during the forecast period.

Evaluation of Restraints in the Malaysia Renewable Energy Market

Below mentioned are some major restraints and their influence on market dynamics:

Malaysia Renewable Energy Market Challenges

While the Malaysia Renewable Energy Industry has promising growth potential, various challenges remain. Major issues include delays required to interconnect to the grid, uneven capacity across regions, and limited access to land in industrial zones. Heavy reliance on imported equipment also increases costs and the risk of foreign exchange fluctuations, which elongate timeframes for financial closure. Moreover, a need exists to develop skilled local labor to complete project design, construction, and maintenance as well as deploying storage capacity more rapidly to address intermittency, all of which are necessary to ensure an efficient, timely, and cost-effective expansion of renewable energy in the country.

Malaysia Renewable Energy Market Trends

Some major trends contributing to the development of the Malaysia Renewable Energy Market growth are:

• Rooftop & C&I Solar Acceleration: Businesses pursue self-generation and VPPA arrangements to hit ESG goals and combat tariffs. 
• Hybridisation & Storage: Solar-plus-battery projects arise to reduce curtailment and capture peak prices. 
• Digital O&M & Performance Analytics: Remote monitoring and AI-based diagnostics reduce downtime and optimise yield. 
• Green Hydrogen Pilots: Early pilot projects on research explore RE-based hydrogen for industry and heavy mobility. 
• Hydro-Solar & Floating PV: Dual-use assets constructed on reservoirs and industrial ponds add capacity with little land-use conflict.

Investment Opportunities in the Malaysia Renewable Energy Market

Here are some investment opportunities in the Malaysia Renewable Energy Industry:

• C&I Rooftop and Ground-Mount Solar: Long-term PPAs and CGPP structures for factories, logistics and data centres.
• Battery Energy Storage Systems: Grid services, peak shaving and capacity firming alongside PV fleets.
• Floating & Hybrid Solar with Hydro: Reservoir-based PV and hydro-coupled dispatch for higher utilisation.
• Distributed Energy & Microgrids: Industrial parks and estates adopting behind-the-meter resilience solutions.
• Green Data Centre Power: Renewables-backed supply for hyperscale and colocation facilities.

Top 5 Leading Players in the Malaysia Renewable Energy Market

Here are some top companies contributing to Malaysia Renewable Energy Market Share:

1. Gentari (PETRONAS)

Clean energy arm of PETRONAS developing utility/C&I solar, storage and EV ecosystem solutions, focused on regional scale-up and corporate decarbonisation.

2. TNB Renewables

Utility-backed developer and asset operator expanding utility-scale and distributed solar, piloting storage and grid solutions across Peninsular Malaysia.

3. Solarvest Holdings Berhad

EPC and IPP specialising in rooftop and ground-mount PV with end-to-end services, digital O&M and bankable delivery track record for C&I clients.

4. Cypark Resources Berhad

Renewable developer focused on large-scale solar, waste-to-energy and environmental engineering, leveraging brownfield sites and hybrid configurations.

5. Sarawak Energy Berhad

Integrated utility growing renewables-led generation with hydro backbone and emerging solar portfolios to support Borneo load growth and exports.

Government Regulations Introduced in the Malaysia Renewable Energy Market

According to Malaysian government data, Key initiatives include the National Energy Transition Roadmap (NETR) driving catalytic renewable projects, Net Energy Metering (NEM 3.0) for residential, commercial, and industrial rooftops, and the Corporate Green Power Programme (CGPP) facilitating virtual PPAs. Other measures such as Large-Scale Solar (LSS) tenders, the Green Electricity Tariff (GET), and Feed-in Tariff (FiT) schemes managed by SEDA support market expansion. Simplified rooftop PV approvals and grid upgrade programs enhance investment confidence and accelerate renewable deployment nationwide.

Future Insights of the Malaysia Renewable Energy Market

It is expected that strong growth in the Malaysia Renewable Energy Market occurs over the forecast period as additions to capacity are made from new capacity through CGPP and LSS programs and the rapid adoption of commercial and industrial rooftop, as well as early stage deployment of energy storage. As corporate procurement expands, together with digital grid upgrades and the establishment of potential regional interconnection studies, the ability to integrate renewables will be bolstered. Constant revisions to the design of flexible assets, floating and brownfield solar projects, and bankable contract iterations will be beneficial in the overall competitiveness of the renewable energy market.

Market Segmentation Analysis

The report offers a comprehensive study of the subsequent market segments and their leading categories.

Solar to Dominate the Market - By Technology

According to Ritika Kalra, Senior Research Analyst, 6Wresearch, the solar segment will dominate due to favourable procurement schemes (NEM 3.0, CGPP, LSS), rapid EPC cycles and competitive module pricing. Rooftop and ground-mount PV across industrial estates and logistics hubs, alongside floating PV on reservoirs, are scaling quickly, making solar the primary contributor to new additions nationwide.

Utilities to Dominate the Market – By End-User

The utilities segment is witnessing rapid growth as LSS and utility-procured CGPP projects connect to the grid under standardised frameworks. Large-scale assets owned or contracted by utilities deliver bulk renewable supply, while nascent storage and grid upgrades enhance dispatchability and ensure reliable, low-carbon power for industrial clusters and urban loads.

Key attractiveness of the report

• 10 Years Market Numbers.
• Historical Data Starting from 2021 to 2024.
• Base Year: 2024
• Forecast Data until 2031
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report:

• Malaysia Renewable Energy Market Outlook
• Market Size of Malaysia Renewable Energy Market, 2024
• Forecast of Malaysia Renewable Energy Market, 2031
• Historical Data and Forecast of Malaysia Renewable Energy Revenues & Volume for the Period 2021-2031F
• Malaysia Renewable Energy Market Trend Evolution
• Malaysia Renewable Energy Market Drivers and Challenges
• Malaysia Renewable Energy Price Trends
• Malaysia Renewable Energy Porter's Five Forces
• Malaysia Renewable Energy Industry Life Cycle
• Historical Data and Forecast of Malaysia Renewable Energy Market Revenues & Volume By Technology for the Period 2021-2031F
• Historical Data and Forecast of Malaysia Renewable Energy Market Revenues & Volume By Wind for the Period 2021-2031F
• Historical Data and Forecast of Malaysia Renewable Energy Market Revenues & Volume By Solar for the Period 2021-2031F
• Historical Data and Forecast of Malaysia Renewable Energy Market Revenues & Volume By End-User for the Period 2021-2031F
• Historical Data and Forecast of Malaysia Renewable Energy Market Revenues & Volume By Utilities for the Period 2021-2031F
• Historical Data and Forecast of Malaysia Renewable Energy Market Revenues & Volume By Captive Industrial for the Period 2021-2031F
• Historical Data and Forecast of Malaysia Renewable Energy Market Revenues & Volume By Commercial for the Period 2021-2031F
• Historical Data and Forecast of Malaysia Renewable Energy Market Revenues & Volume By Residential for the Period 2021-2031F
• Malaysia Renewable Energy Import Export Trade Statistics
• Market Opportunity Assessment By Technology
• Market Opportunity Assessment By End-User
• Malaysia Renewable Energy Top Companies Market Share
• Malaysia Renewable Energy Competitive Benchmarking By Technical and Operational Parameters
• Malaysia Renewable Energy Company Profiles
• Malaysia Renewable Energy Key Strategic Recommendations

Market Covered

The report subsequently covers the market by following segments and subsegments:

By Technology

• Wind
• Solar

By End-User

• Utilities
• Captive Industrial
• Commercial
• Residential