Penang Enforces New Renewable Energy Rules for Commercial and Industrial Buildings

GEORGE TOWN, Oct 31: Penang has introduced new renewable energy (RE) guidelines that will require new commercial and industrial buildings to commit to clean energy sourcing as part of the state’s long-term push toward sustainability and carbon neutrality.

Under the new directive, at least 75% of a building’s roof area must be installed with solar panels, or the premises must meet renewable energy sourcing targets set according to Tenaga Nasional Berhad (TNB) tariff categories.

State infrastructure, transport, and digital committee chairman Zairil Khir Johari said the initiative is a key component of the Penang Energy Framework (PEF), the state’s roadmap toward achieving renewable energy and efficiency targets by 2030.

“The PEF lays the foundation for a cleaner, smarter, and more resilient energy system for Penang,” Zairil said in his keynote address at the Penang Green Summit 2025 held at the Penang Waterfront Convention Centre (PWCC) on Thursday (Oct 30).

According to the new guideline, low-voltage users must source 25% of their energy from renewable sources, medium-voltage users 5%, and high-voltage users 2%.

Additionally, large commercial buildings with air-conditioned areas exceeding 4,000 square meters must ensure that at least 2% of their total energy consumption comes from renewable sources.

Zairil described the PEF as a “living document” that evolves through continuous policy improvements, community awareness, and the promotion of energy-efficient practices.

He revealed that Penang is also exploring floating solar installations on several dams, a project currently being studied by Penang Water Supply Corporation (PBAPP) to address land constraints while increasing renewable capacity.

“Floating solar offers an innovative and practical solution to expand clean energy generation,” he said.

Zairil also highlighted that the upcoming Penang Silicon Island (PSI) project would integrate renewable energy through its Green Tech Park, which will be fully powered by solar energy during its initial phase using rooftop installations and off-site solar procurement.

He added that Penang’s policies complement the Federal Government’s Solar ATAP program, which provides more flexibility and incentives for businesses to adopt solar solutions.

“The journey forward requires innovation, investment, and collaboration. The government alone cannot achieve this transition,” he said.

Earlier, Chief Minister Chow Kon Yeow, who officiated the event, reaffirmed Penang’s commitment to aligning its energy transition efforts with Malaysia’s National Energy Transition Roadmap (NETR), which targets net-zero emissions by 2050.

“Over the years, this summit has evolved from a discussion platform into a movement that unites policymakers, industry leaders, academia, and communities in building a low-carbon and resilient Penang,” Chow said.

Chow added that since its launch in November 2024, the PEF has already driven several initiatives, including integrating renewable energy and energy efficiency requirements into the building approval processes of both MBPP and MBSP.

He also announced that Solar Voltech, a subsidiary of the Penang Development Corporation (PDC), has been appointed to lead renewable energy upgrades for public buildings, while the Penang Green Council (PGC) is developing an AI-driven energy data platform for smarter planning and monitoring.

During the summit, Chow witnessed the signing of a Memorandum of Understanding (MoU) between the Penang government and Alliance Bank Malaysia Berhad to establish the Climate Mitigation Fund (CM Fund), Malaysia’s first state-level blended financing initiative.

The CM Fund aims to support small and medium enterprises (SMEs) in transitioning toward sustainable and environmentally friendly production through preferential financing and ESG-based programs.

“This partnership marks another step forward in helping businesses contribute to Penang’s clean energy future,” Chow said.