Solar future takes shape: Fadillah (third right) with (from left) Sime Darby Property Township Development chief operating officer Apollo Leong Yong Kuan, Sime Darby Property managing director – Property Development Datuk Mohd Sohimin Mohd Alayedin, Azmir, Sime Darby Property non-independent non-executive director Tengku Datuk Seri Ahmad Shah Alhaj ibni Almarhum Sultan Salahuddin Abdul Aziz Shah Alhaj and others observing the scale model of City of Elmina, a township where homeowners can lease rooftop spaces for solar power generation. — Low Lay Phon/The Star

Sime Darby Property’s pioneer project could enable government's goal of 70% renewable energy generation capacity by 2050

SHAH ALAM: The launch of Sime Darby Property’s pioneering residential solar project under the National Energy Transition Roadmap (NETR) represents a significant step forward in Malaysia's ambitious goal of achieving 70% renewable energy generation by 2050. 

This initiative, officially unveiled by Deputy Prime Minister and Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof, is more than just a single pilot project as it is a scalable blueprint for how the nation can harness its collective potential to meet its long-term clean energy targets. 

By focusing on distributed generation, it lays the groundwork for a decentralised, resilient energy network capable of supporting the country's sustainable growth.

Speaking at the launch event in the City of Elmina on Sept 26, Fadillah hailed the project as a key step in decentralised energy generation and a model for public-private cooperation in climate-conscious development, noting that the move would help the nation generate more renewable energy (RE) to meet or even Tenaga Nasional Bhd’s (TNB) target of 8.3 gigawatts (GW).

“This is clear evidence of the Madani Government’s commitment to realising the National Energy Transition Roadmap,” said Fadillah. “It reflects the kind of strategic collaboration between industry leaders like Sime Darby Property and Tenaga Nasional Bhd that we need to secure a greener and more resilient future.”

Developed by Sime Darby Property in partnership with TNB subsidiary GSPARX, the residential solar scheme marks one of the first large-scale pilots under the Community Renewable Energy Aggregation Mechanism (CREAM) mechanism, introduced by the Ministry earlier this year. 

The framework enables homeowners to lease out rooftop space to third-party aggregators who will install solar photovoltaic (PV) systems across multiple properties to generate electricity for local green users, said Fadillah.

He said the business model would generate two tiers of income via:

• Rooftop Lease Income: Homeowners earn income from leasing their rooftop space. 
• Green Electricity Sales: This income is generated by selling excess solar power directly to local green users. 

As of March 2025, Tenaga Nasional Bhd (TNB) reported a current renewable energy (RE) capacity of 4.5 GW, which constituted 21% of its total energy capacity. TNB is working towards achieving 8.3 GW of renewable energy capacity, with a significant portion coming from domestic Large-Scale Solar (LSS) projects, such as the Sime Darby Property pilot project.

As the designated Local Energy Generator Aggregator (LEGA), Sime Darby Property will install, operate and manage the solar infrastructure in collaboration with GSPARX as its technical partner.  

The renewable energy generated will be channelled through TNB's grid to Sime Darby  Property’s nearby Innovation Park, located within 5km of the participating homes, which will serve as the Local Green Consumer (LGC). Beyond this pilot, scale-up opportunities are being explored with potential off-takers, including petrol stations, commercial hubs and even nearby schools that have expressed interest in participating, further reinforcing the model’s scalability and highlighting its potential for wider replication. 

Sime Darby Property group managing director and chief executive officer Datuk Seri Azmir Merican said: “With this pilot,  we are demonstrating a model that aligns townships with national energy transition goals. By turning homeowners into active participants, we are reducing the community’s carbon  footprint while supporting property value creation and potential income generation for  residents.” 

Sime Darby Property plans to expand this initiative to more of its townships, further scaling the CREAM framework in partnership with TNB and other stakeholders. This also positions the group as a key private sector driver in supporting the government's long-term goal of achieving 70% renewable energy generation capacity by 2050. 

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