Malaysia’s Solar Revolution: Racing Towards 2050 as Carbon Tax Era Begins

A solar energy installation implemented at one of Billion Group’s retail outlets

KUALA LUMPUR, 8 January 2026 – Malaysia has entered a new era of energy transition as its carbon tax came into force and the Solar ATAP programme launched on 1 January 2026, accelerating the nation’s push towards net-zero emissions by 2050.

In December 2025, TotalEnergies and Google sealed a 21-year deal to supply 1 TWh of renewable power from the Citra Energies solar farm in Kedah, powering Google’s $2 billion data centre in Elmina, Selangor. Construction starts early 2026.

The move highlights Malaysia’s rising appeal as Southeast Asia’s solar leader, timed with the carbon tax targeting steel, cement and energy sectors, alongside the EU’s Carbon Border Adjustment Mechanism (CBAM) fully effective in 2026.

Darren Tan, CEO of EFS Group

Leong Teik Ee, Group Sales & Marketing Director of Billion Group

Solar Revolution

Government incentives include Large Scale Solar 6 (LSS6) adding 2 GW capacity, RM1 billion Green Technology Financing Scheme, and Corporate Renewable Energy Supply Scheme (CRESS).

Local businesses are embracing the shift. Billion Group of Companies installed 3 MWp rooftop solar systems with EFS Group, generating 4,500 MWh annually and offsetting 3,300 tonnes of CO2.

Group Sales & Marketing Director Leong Teik Ee said solar attracts eco-conscious customers while supporting the National Energy Transition Roadmap.

EFS Group CEO Darren Tan noted solar is now essential for margins, with mandatory Battery Energy Storage Systems (BESS) for larger installations.

With data centres projected to consume 30% of national power by 2030, storage solutions address supply-demand mismatches. Early adopters gain advantages in incentives and grid access as Malaysia races towards a sustainable future. (248 words)