RESIDENTIAL solar panel adoption has grown rapidly, but concerns such as high costs and potential damage continue to discourage some homeowners. An integrated solar and insurance model could change that.
Universiti Kebangsaan Malaysia (UKM) Solar Energy Research Institute (Seri) director Prof Dr Norasikin Ahmad Ludin said homeowners worry about unforeseen events such as storms, lightning strikes or accidental damage that could disrupt the system and the expected electricity savings they rely on to justify their investment.
“There is often confusion about the distinction between product warranties that cover defects and actual system performance or damage protection. This uncertainty creates hesitation,” she said.
Prof Norasikin added that the initial investment for a rooftop solar system, typically ranging from RM15,000 to RM40,000 depending on system size, may deter homeowners.
The high cost of installation and the perception of a long payback period remain a significant hurdle for many households despite supportive national initiatives such as the Solar Accelerated Transition Action Programme (Solar Atap).
Effective Jan 1, Solar Atap establishes the installation capacity limit at 100% of the consumer’s maximum demand, with an option to export excess energy back to the grid. It is a continuation of the Net Energy Metering (NEM) programme, which ended in June last year.
To address these barriers, both the government and private sector have complementary roles to play, Prof Norasikin said.
The government should continue to strengthen initiatives like Solar Atap and NEM, with clear, long-term visibility so homeowners can plan with confidence, she explained.
It could also explore government-backed green financing with competitive interest rates or consider allowing solar investments to be bundled into property purchase financing for new homes.
Besides strengthening certification frameworks for installers and equipment to ensure quality and reliability, the government could also enable solar adoption for strata-titled properties such as condominiums and apartments, which represent a large portion of urban households currently excluded from rooftop solar, Prof Norasikin said.
For the private sector, she recommended that it drive accessible, transparent education campaigns to demystify the technical and financial aspects of solar and help homeowners make more informed decisions.
Simplified and bundled solutions, such as Tune Protect Malaysia Bhd and Verdant Solar Sdn Bhd’s integrated residential solar and insurance protection model, are a good example of an approach that reduces the friction in solar adoption, she said.
Through this newly launched collaboration, Verdant Solar solar panels are protected with Tune Protect’s insurance solutions against accidental loss, damage caused by storms, fire or other unforeseen events. There is also coverage for loss of electricity savings arising from system downtime caused by insured damage.
“I view this integrated model as a positive and timely innovation. It addresses one of the overlooked barriers of solar adoption, which is the risk gap.
“Currently, standard warranties cover manufacturing defects, but they do not protect homeowners against accidental damage from storms, lightning or fires. This leaves a significant financial exposure.
“By embedding protection directly into the installation package, Tune Protect and Verdant Solar are simplifying the adoption journey,” Prof Norasikin said.
She stressed that such insurance protection models must not add to the financial burden of investing in rooftop solar panels.
“Ultimately, the goal is to make solar adoption not just an environmental choice, but a financially sound, low-risk and hassle-free decision for every Malaysian household.”
