Maybank Predicts Robust Pipeline for Malaysia's Renewable Energy Solar Projects with CRESS and LSS6

Maybank Investment Bank foresees a robust project pipeline for utility-scale solar initiatives in Malaysia, boosted by the rollout of the Corporate Renewable Energy Supply Scheme (CRESS) and Large Scale Solar 6 (LSS6) programs.

The bank maintains a positive outlook on Malaysia's renewable energy sector, supported by the structural growth in deployments matching National Energy Transition Roadmap (NETR) objectives.

Malaysia's Renewable Energy Milestones and Ambitious Targets

Installed renewable energy capacity has hit 32 percent, exceeding the 2025 goal of 31 percent and signaling strong progress toward decarbonization.

Under NETR, Malaysia aims for a 70 percent renewable energy capacity mix by 2050, with overall implementation advancing steadily.

Global energy transition investments soared to a record $2.3 trillion in 2025, up 8 percent from the prior year, fueling advancements in renewables, EVs, and grid infrastructure.

Battery Energy Storage Systems (BESS) are emerging as vital for tackling solar intermittency, highlighted by recent awards of four 100MW/400MWh grid-scale units under the MyBeST program.

Earnings Prospects and Market Challenges Ahead

Solar engineering, procurement, construction, and commissioning (EPCC) firms focused on utility-scale projects are set for robust fourth-quarter 2025 earnings from ongoing recognitions.

While residential solar adoption under the Solar ATAP program lags due to extended payback periods, commercial and industrial segments thrive on solar-plus-BESS demand.

Solar panel prices have risen 20-30 percent to $0.11-0.12 per watt amid polysilicon hikes, silver rallies, and China's impending VAT rebate cancellation in April 2026.

Despite volatility, impacts remain contained through long-term contracts and cost pass-through clauses in most EPCC agreements.

Panel prices are expected to stabilize at $0.12-0.13 per watt in 2026 as demand normalizes, though global oversupply persists with 1.4TW capacity against softening installations.

Looking ahead, increased BESS integration in CRESS and LSS6, alongside the resilient pipeline, positions Malaysia's renewable sector for sustained expansion and economic impact.