What is Solar Installation?
A solar installation is the process of setting up a solar power system that harnesses energy from the sun to generate electricity. This system typically consists of the following components:
Solar panels: These panels are made up of photovoltaic (PV) cells that convert sunlight into direct current (DC) electricity.
Inverter: This device converts the DC electricity from the solar panels into alternating current (AC) electricity, which is the type of electricity used in homes and businesses.
Mounting system: This system securely attaches the solar panels to a roof, ground, or other surface.
Wiring: This connects all the components of the solar system together.
Optional components: These may include batteries to store energy for later use, or a monitoring system to track the system’s performance.
Government Commitment to Sustainability
The Malaysian Government has announced significant updates to the Green Technology Tax Incentive Guidelines as part of its commitment to achieving a sustainable and carbon-neutral future by 2050. The revised Green Investment Tax Allowance (GITA) includes a tiered approach to enhance green technology adoption.
Expanded Qualifying Assets
Under the revised guidelines, the list of qualifying assets has been expanded to include innovative technologies such as electric vehicles, energy storage systems, and green building certifications. The GITA Asset for Own Consumption allows companies to claim a 100% tax allowance on qualifying expenditures from 2024 to 2026.
Promoting Environmental Responsibility
The guidelines emphasize minimizing environmental degradation, promoting health, and conserving natural resources. Companies must ensure their investments comply with criteria set by the Ministry of Finance and are verified by the Malaysian Green Technology and Climate Change Corporation (MGTC).
