Is Solar Suitable for My Factory in Malaysia?

Why daytime electricity use affects solar suitability

Solar is more likely to suit your factory when you need electricity during the hours the panels generate it. Production lines, compressors, cooling and other equipment running through the day can use that output directly, reducing purchases from TNB. A factory that does most of its production after sunset may have an equally large bill, but less demand that solar can serve at the same time.

That match needs to hold across the year, not just on a busy weekday. If your factory closes on Sundays, public holidays or during annual maintenance, the panels can still generate while electricity use falls. Those periods affect how much output you can use directly and, in turn, the savings a proposed system can deliver.

A comparison of expected solar output and your electricity use through the day will show where the two match and when surplus may arise. It should include normal working days, weekends and shutdowns so the recommended size reflects how your factory actually operates.

Read the bill and the load profile together

To establish that match, the provider needs more than the total on your bill. Bills show how much electricity you bought over a month, while meter readings taken at regular intervals reveal when you used it. Together, they help estimate the share of solar output your factory could use directly.

Gather recent bills and any meter records showing electricity use through the day. Include the tariff category, supply voltage and recorded demand where available. Explain months with a shutdown, a new production line or an unusually large order so the provider can account for the difference.

Distinguish energy, measured in kilowatt-hours, from power, measured in kilowatts. Solar may reduce purchased energy without producing the same percentage reduction in every bill component. Ask for an explanation of the expected bill after solar, including charges that remain.

Confirm which solar programme applies

The next question is what happens to electricity the factory cannot use immediately, because that can change the return from a larger system. For eligible TNB-connected premises in Peninsular Malaysia, Solar ATAP and SELCO have different conditions: Solar ATAP allows eligible exports under its rules, while SELCO is a self-consumption arrangement. Your proposal needs to identify which programme applies before valuing surplus electricity.

Ask the provider to check your account, any existing solar participation, the proposed capacity and required studies. Confirm that the forecast uses conditions for your proposed application, not historical NEM terms from an older project.

The proposal should state the programme, the conditions used in the savings calculation and who handles applications and follow-up. Ask the provider to explain anything that affects your cost, expected savings or approval timeline.

Consider how long the business will stay

A factory can have suitable daytime demand and still need to reconsider the investment if it may leave the premises soon. Solar provides benefits over time, so the period you can use the installation matters alongside the expected savings. That makes a secure long-term location a different proposition from a tenancy approaching renewal.

For leased premises, begin discussions with the landlord early. Clarify permission, equipment ownership, access for servicing and what happens if the tenancy ends. These matters should be resolved alongside the commercial assessment rather than left until equipment is ordered.

Tell the provider about planned expansion, relocation or changes in production. Calculate savings using current electricity use first. If you expect to add a production line, ask for a separate calculation showing its expected start date and working hours.

Compare the cost with your investment budget

Even where the electricity calculation is favourable, solar has to fit the business’s finances. Buying the system uses capital that might otherwise fund machinery, stock or expansion, while financing or a third-party arrangement changes when payments fall due. The suitable option depends on both the expected return and what the business can commit over that period.

Ask for the system price, expected generation, electricity used directly, surplus treatment and annual operating costs. Calculate electricity savings separately from possible tax benefits. If production or tariffs change, ask which figures would change and how that affects the return.

An outright purchase and a third-party arrangement should be assessed over a comparable period. A smaller upfront commitment may suit cash planning, but ongoing payments and responsibilities still need to be understood. There is no single funding model that is best for every factory.

What to ask Verdant Solar during the assessment

These questions should come together in the proposal rather than leave you to interpret an equipment list on its own. Verdant Solar’s commercial proposal covers applications, project management, equipment, payment milestones and financial projections, giving your team the information needed to assess both the system and the commitment involved.

For example, if the team recommends a smaller system than the available area could accommodate, ask why. Lower demand on weekends, connection requirements or your investment budget may affect the recommendation. The explanation should refer to your factory’s records and requirements.

Ask Verdant Solar which monitoring and maintenance services are included, who performs them and what you would pay for later. Keep those details in the approved proposal so your facilities and finance teams can plan for the same service costs.

When to pause and gather better information

Sometimes the assessment reveals that a decision is premature, rather than that solar is unsuitable. An unresolved tenancy renewal, changing production schedule or unclear electricity account can materially alter the recommendation. Settling those points first is preferable to selecting equipment using figures the business already expects to change.

If savings are quoted before your bills and shift hours have been reviewed, ask what the estimate is based on. The provider should explain how much solar electricity you are expected to use and which charges it would reduce.

It can be sensible to proceed in stages: first establish feasibility, then confirm design and funding, and only then commit to implementation. Each stage should produce information that reduces a specific uncertainty.

What to bring to the first meeting

The first meeting is most productive when the provider can connect electricity records with what happens on the factory floor. Recent bills, shift times, account details, premises information and planned changes give it that starting point. Involving both operations and the person approving the investment also helps resolve questions that neither team can answer alone.

Tell the provider what matters most: reducing electricity costs, recovering the investment within your required period or meeting a specific sustainability objective. If your budget is fixed, say so. This helps the team compare options you can approve, rather than recommend the largest possible system.

How working hours and tenancy affect the decision

Consider two illustrative businesses with similar annual electricity consumption. One runs most equipment between morning and late afternoon, owns its premises and expects stable production. The other operates mainly at night and is considering relocation. The first may have a stronger initial case for directly using solar, while the second needs a different consumption and occupancy assessment.

The daytime factory may be able to use more solar electricity directly. The night-time factory needs a calculation based on its actual daytime demand, while the possible move affects how long it can benefit from the installation. Neither should choose equipment until these questions are addressed.