GEORGE TOWN: New commercial and industrial buildings in Penang must now ensure that at least 75% of their roof area is covered with solar panels or meet renewable energy sourcing targets based on their Tenaga Nasional Berhad (TNB) tariff category.
State infrastructure, transport and digital committee chairman Zairil Khir Johari said the new guideline requires buildings to source part of their energy from renewable sources — 25% for low voltage users, 5% for medium voltage, and 2% for high voltage consumers — as part of Penang’s effort to boost clean energy adoption.
He said large commercial buildings with air-conditioned areas exceeding 4,000sq m must also ensure that at least 2% of their total energy comes from renewable sources, in line with the Penang Energy Framework (PEF) — the state’s roadmap for achieving its 2030 renewable energy and energy efficiency targets.
“The PEF lays the foundation for a cleaner, smarter and more resilient energy system for Penang,” said Zairil in his keynote address at the Penang Green Summit 2025 held at the Penang Waterfront Convention Centre (PWCC) on Thursday (Oct 30).
He described the framework as a “living document” that continues to evolve through policies designed to raise awareness, inspire behavioural change, and promote efficient energy practices.
Zairil said Penang was also exploring floating solar systems on several dams, a study currently being undertaken by Penang Water Supply Corporation (PBAPP) to overcome land limitations and expand renewable generation capacity.
“Floating solar offers a viable and innovative way to harness clean energy,” he said.
He added that the upcoming Penang Silicon Island (PSI) project would feature renewable energy integration through its Green Tech Park, which will be fully powered by solar energy in its first phase via rooftop installations and off-site renewable energy procurement.
Zairil said the state’s initiatives complemented the Federal Government’s Solar ATAP programme, which offers more flexibility for solar installations, further enabling businesses and industries to invest in renewable 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 summit, said the state remains committed to aligning its 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 uniting policymakers, industry players, academia and communities in building a low-carbon, resilient and inclusive Penang,” he said.
Chow said the PEF, launched in November 2024, has already spurred several initiatives, including the integration of renewable and energy efficiency criteria by both Majlis Bandaraya Pulau Pinang (MBPP) and Majlis Bandaraya Seberang Perai (MBSP) in building approvals.
He added that Solar Voltech, a subsidiary of the Penang Development Corporation (PDC), has been appointed to spearhead renewable upgrades for public buildings, while the Penang Green Council (PGC) is developing an AI-assisted energy data platform for smarter, data-driven planning.
He also 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) — the country’s first state-level blended financing platform aimed at helping SMEs transition to sustainable production through preferential financing and ESG programmes.
