Guide to Starting a Solar Business in Malaysia

Guide to Starting a Solar Business in Malaysia | Bestar

Guide to Starting a Solar Business in Malaysia

Setting Up Your Malaysian Solar Business

The Malaysian sunshine presents a golden opportunity to enter the solar energy industry. Here's a roadmap to get your solar business started:

Market Research and Niche Identification:

• Research the Landscape: Start by understanding the solar industry in Malaysia. The Sustainable Energy Development Authority (SEDA) is a good starting point.

• Identify Your Niche: While solar panel installation is a core service, consider additional offerings. This could be solar system cleaning, maintenance, financing options, or catering to a specific customer segment (residential vs commercial).

Business Planning and Legalities:

• Craft a Business Plan: Outline your business goals, target market, marketing strategy, financial projections, and team structure.

• Company Registration: Register your business with the Companies Commission of Malaysia (CCM).

• Permits and Licenses: Obtain necessary permits and licenses for operating a solar business. This may include electrical work permits and SEDA registration.

• Business Insurance: Secure general liability insurance and consider worker's compensation if you plan to have an installation team.

Building Your Solar Business:

• Source Quality Equipment: Establish relationships with reliable solar panel and equipment suppliers.

• Assemble Your Team: Recruit skilled personnel for sales, installation, and maintenance (if applicable). Consider partnerships with certified electricians.

• Financing Options: Explore offering financing options like solar subscriptions to make solar power more accessible to customers.

Standing Out in the Malaysian Solar Market:

• Stay Informed on Incentives: The Malaysian government offers incentives like Feed-in Tariffs (FiT) to promote solar adoption. Keep yourself updated on these programs to advise clients effectively.

• Customer Service is Key: Provide excellent customer service to build trust and positive word-of-mouth promotion.

• Embrace Sustainability: Highlight the environmental benefits of solar energy in your marketing and operations.

Beyond standard secretary services (which are essential for company incorporation and compliance), we can also help with the specific requirements for a solar business, particularly regarding SEDA and ST registrations.

Here's a breakdown of how we can help:

1. SEDA Registration (Sustainable Energy Development Authority Malaysia):

For a solar business, you will likely need to register with SEDA Malaysia. Depending on your business model (e.g., solar PV investor, service provider), different classifications and requirements apply.

• Registered Solar PV Investor (RPVI): If your company plans to operate as an investor in solar PV initiatives, offering Power Purchase Agreements (PPAs) or solar leasing services, you'll need to register as an RPVI.

  
  

  • Key Requirement: For foreign companies, there is a minimum paid-up capital of RM10,000,000.00. They are also generally allowed to participate in solar PV projects under the NEM program with a capacity exceeding 250 kWac and need to ensure at least 80% local workers and 100% local Engineering, Procurement and Construction (EPC) by appointing a SEDA-registered PV Service Provider.

    
    

• Registered PV Service Provider (RPVSP): If your company will be involved in the supply, design, installation, testing, and consultation of solar PV systems, you'll need to register as an RPVSP.

  
  

  • Requirements: SEDA has specific criteria and categories for RPVSPs, often tied to minimum project capacities (e.g., 100 kW for domestic, 500 kW for commercial).

    
    

• How Bestar Can Help: We can assist you in:

  
  

  • Determining the correct SEDA registration category for your solar business.

  • Preparing and compiling all necessary documentation, including financial statements (Form 24 for Sdn Bhd, showing the required paid-up capital or bank balance for other entities), and details of the "Qualified Person" (who may need to be a substantial shareholder or partner).

  • Facilitating the online application process through the SEDA portal.

  • Liaising with SEDA Malaysia for approval and addressing any queries.

  • Advising on compliance with SEDA's terms and conditions and code of ethics.

3. ST Registration (Suruhanjaya Tenaga - Energy Commission):

The Energy Commission (ST) is the regulatory body for the energy sector in Malaysia. Depending on the scale and type of solar installation your company plans to undertake, you may require licenses or certificates from ST.

• Licensing for Electricity Supply: If your company will be involved in generating or supplying electricity from installations (e.g., public installations for solar power), you will need a license from ST under the Electricity Supply Act 1990.

  
  

• Certificate of Registration (CoR) to Manufacture/Import: If your business involves manufacturing or importing solar equipment, you'll need to register as a registered manufacturer/importer with the Energy Commission and obtain a Certificate of Registration (CoR) through their e-DIK system.

  
  

• How Bestar Can Help: We can assist you in:

  
  

  • Identifying the specific licenses or registrations required from ST based on your solar business activities.

  • Preparing and submitting the necessary application forms and supporting documents (e.g., company registration documents, business licenses from local authorities).

  • Navigating the ST portal and liaising with the commission for approvals.

How Bestar can Help

Guide to Starting a Solar Business in Malaysia

Bestar provides guidance relevant to starting a business, and solar businesses are no exception. Here's how Bestar can help:

• Business Structure and Registration: We can advise on the most suitable business structure (sole proprietorship, partnership, or limited liability company) for your solar business and help with the registration process.

• Financial Projections and Planning: We can assist in creating financial projections, including your startup costs, operational expenses, and potential revenue streams. This is crucial for securing funding and planning your business growth.

• Taxation Advice: Understanding solar-related tax incentives in Malaysia is essential. Bestar can help you navigate tax regulations and ensure you claim all applicable benefits.

• Accounting and Bookkeeping: We can set up your accounting system, manage your books, and ensure you comply with Malaysian accounting standards.

• Financial Reporting: We can prepare financial statements that provide a clear picture of your business's financial health, which is vital for attracting investors or securing loans.

In summary, Bestar offers a comprehensive suite of services that includes:

• Company Incorporation: Full support for registering your Sdn. Bhd. in Malaysia.

• Secretarial Services: Ongoing compliance with SSM requirements.

• SEDA Registration Assistance: Guidance and support for obtaining the necessary SEDA licenses/registrations (RPVI, RPVSP).

• ST Registration Assistance: Advice and support for obtaining relevant licenses or certificates from the Energy Commission.

• Advisory: Providing clear information on regulatory requirements for foreign investors and solar businesses in Malaysia.

Contact Bestar to discuss our specific services related to solar businesses.

By working with a qualified accounting firm like Bestar, you can gain valuable financial expertise and ensure your solar business starts on a strong footing.

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