Verdant Solar CEO highlights the importance of public awareness, customer satisfaction and reliable solution in boosting the industry’s growth

by SHAUQI WAHAB

AS THE popularity of solar power rises, solar photovoltaic (PV) has emerged as the most promising sector in the national renewable energy (RE) landscape since 2011, boasting a remarkable compound annual growth rate (CAGR) of 48%. Its installed capacity has surged from 0.1 Gigawatt (GW) to 2.6GW.

In an enlightening conversation, Verdant Solar Sdn Bhd CEO Zeth Lim provided valuable insights into the company’s dynamic journey within Malaysia’s RE sector.

From raising awareness about RE resources to addressing the implications of COP28, Lim shared with The Malaysian Reserve (TMR) about Verdant Solar’s pivotal role and Malaysia’s strides in RE.

On public awareness and education, Lim noted that education helps in boosting production.

“When we talk about the tech rate for solar energy last year, especially when it comes to residential, we see about 130% of profit last year, mostly production of solar systems, especially in the residential area,” he said.

Verdant Solar’s future plans entail expanding installations to 2,600 houses in 2024, alongside venturing into battery systems and electric vehicle (EV) chargers.

Observing the shifting consumer perception, Lim remarked on the significant improvement in the perception of solar panel usage.

However, regarding agricultural applications, although there is acceptance, challenges such as limited number of service providers and high battery system costs persist, which is the reason he advocates for a customer-centric approach, highlighting that the key strategy lies in delivering excellence for customers.

Lim attested that Verdant Solar prioritises customer experience, engaging in corporate social responsibility (CSR) initiatives and educating communities.

He also underscores the importance of outstanding customer service and positive experiences in building trust and promoting the adoption of solar energy technologies.

“That is why 20% to 30% of our sales come from referrals,” he added.

Lim emphasised the importance for companies to prioritise customer satisfaction and provide reliable solutions. As a result, the company introduced the Verdant Home App.

Recently made available on the Apps Store and Google Store, the app helps existing customers make their payments

and record their earnings. The app also allows the public to educate themselves regarding RE resources, net energy metering (NEM) policy and solar energy.

Global Trend

Discussing Malaysia’s involvement and the National Energy Transition Roadmap (NETR), Lim praised the government’s active role for the transition.

“Yes, I believe NETR is something that we can expect the government to reintroduce, given that it was proposed before COP28.

“In terms of numbers and everything, it’s true that it’s projected to triple by 2030, but I do hope we’ll see some adjustments after this,” he said.

Lim noted the commitment to promote solar power, strengthen rooftop solar initiatives and explore cross-border frameworks for exporting solar energy to neighbouring countries.

“We are also talking about the cross-border framework. With this framework, potentially we can install solar farms in Singapore,” he said.

Adding that Malaysia’s initiatives align with global trends, Lim said the country is doing better compared to other South-East Asian countries, positioning Malaysia as a leading country complying with NEM policy.

Examining global trends, he underscored the increasing focus on battery systems and carbon trading.

“Globally, we are moving towards battery systems. That is the global trend that we see in those first world countries like the US, Germany and Australia, and as for Malaysia, we are still new when it comes to the battery installation,” he commented.

Lim also noted that those who invest in RE can reduce the amount of carbon emissions by selling the energy or saving it.

“They can use it as a certificate to sell it to buyers because some buyers want to commit to CO2 reduction. We have news that Bursa Malaysia will come out with Bursa Carbon Exchange (BCX) trading platform,” he said.

While acknowledging Malaysia’s progress, Lim pointed out the need for further advancements in these areas.

“We understand the situation because these tariffs are actually terrible compared to the first-world countries.

“It makes our battery installations less attractive compared to them because our tariffs are actually cheaper,” he said.

Challenges and Solar Panel Prices

Acknowledging challenges, Lim highlighted that prolonged application processes and grid limitations impede the integration of solar energy.

Fluctuations in solar panel prices are influenced by factors such as the pandemic, which in turn affect overall adoption rates.

However, post-Covid-19, he noted increasing demands driven by rising electricity bills and heightened awareness.

“Following the Covid-19 pandemic, prices have decreased, leading to a surge in demand. This makes it one of the best times to install, as module prices are currently at historic lows,” he said.

Lim also saw the implication of the COP28 as a promising development in RE.

However, he said although Malaysia seemed committed to adhere to the resolutions, the road is long and there is much to be done.

“Over 100 companies have united to triple RE capacities and double energy efficiency. It’s a promising development, but the next step is crucial to prevent lagging in tripling RE installed capacity.

“As for the new government, I think it is very aggressive. However, when it comes to implementation of the detailed framework, I don’t believe that it is up to standard yet, as the government still needs some time to work through that list (of implementation),” he said.

He also highlighted the significance of subsequent policies to keep pace with COP28 commitments.

He identified commitment and policy changes as key indications of the COP28 agreement’s impact on the RE sector.

“Policy changes post-COP28 will be crucial. Aggressive shifts will attract more investors, making RE installation more cost-effective. This, in turn, fosters technological advancements and innovation, especially in battery systems,” he said.

Aligning Goals With National Objectives

In response to inquiries about the company’s direction, Lim confirmed its focus on battery systems and EV chargers.

When asked about the alignment of these goals with national objectives, he explained that the company’s target is to double the installation numbers this year, thus contributing to increased adoption.

In line with government initiatives to support RE adoption, the Ministry of Energy Transition and Water Transformation (Petra) announced the continuation of the NEM 3.0 programme. This includes an additional quota offer of 100 megawatts (MW) for NEM Rakyat and 300MW for NOVA, with the quota offer period extending until December 2024 or until all quotas are allocated.

The company engages in sales and events to promote solar awareness. By setting industry standards and improving services, Lim aims to benefit consumers and support broader national objectives.

“We might have a lot of people that listen to our pitches in the event, but decided to not install it,” he said. “Yet, the seed of solar awareness is implemented, so I think that is the way that we are contributing.”

When discussing media transparency, he acknowledged its importance despite the challenges it presents.

“I mean, transparency is not so good for the business because we are more stressed because of it, but definitely it’s something that needs to be done if we want to grow big,” he noted.

Lastly, reflecting on the industry’s seemingly positive trajectory, he expressed his optimism.

“The grid installation rate needs to grow by 14% every year, which I don’t consider to be a large figure, considering that last year we experienced a year-on-year (YoY) increase of up to 50%,” he said.

TMR also attempted to obtain comments from other major players in Malaysia but did not receive a response from them in time.