The project pipeline for utility-scale solar projects remain robust with the upcoming rollout of Corporate Renewable Energy Supply Scheme (CRESS) and large scale solar 6 (LSS6) projects, Maybank Investment Bank said Monday.
The research house said in a note that it remained positive on Malaysia’s renewable energy (RE) sector, underpinned by the structural upcycle in project deployment aligned with the National Energy Transition Roadmap (NETR) targets.
It is noted that Maybank recently hosted several solar EPCC players and expert speaker from Sustainable Energy Development Authority (SEDA) at its RE corporate day.
During the event, SEDA highlighted that the global energy transition continues to represent a capital-intensive structural megatrend.
Global investments into energy transition reached a record $2.3 trillion in 2025, reflecting an 8 percent year on year from 2024, driven by continued investments into electrified transport (notably electric vehicles [EVs]), RE, and grid infrastructure.
According to the note, the Malaysian energy transition agenda remains largely driven by the long-term framework under National Energy Transition Roadmap (NETR), which targets for 70 percent RE capacity mix by 2050.
Overall implementation progress under the NETR remains firmly on track.
Installed renewable energy capacity has reached 32 percent, surpassing the 2025 target of 31%, indicating positive execution momentum toward the longer-term decarbonization objectives.
Meanwhile, as solar RE capacity continues to scale in line with the NETR, battery energy storage system (BESS) would become an increasingly critical component of the grid to address the inherent intermittency of solar photovoltaic (PV) generation and enhance overall grid stability.
Industry experts expect more BESS to be embedded as a core requirement in future utility-scale RE program (ie: CRESS and LSS6) and potential rollout of more standalone BESS initiatives, following the recent award of four grid-scale BESS each with a capacity of 100MW/400MWh under MyBeST.
Maybank expects solar engineering, procurement, construction, and commissioning (EPCC) players to deliver mixed set of results for the fourth quarter of 2025.
“EPCC players with primary exposure to utility-scale projects are expected to deliver stronger earnings driven by CGPP project recognition,” said the research house.
The residential segment continues to experience muted adoption under the Solar ATAP program, largely due to longer investment payback periods.
That said, rooftop solar players with meaningful exposure to the commercial & industrial (C&I) segment should be better positioned to offset residential softness, driven by sustained demand for solar-plus-BESS solutions aimed at reducing maximum demand charges.
While it maintained positive stance on the RE sector in view of the robust project pipeline ahead, it is cautious of the on-going solar panel cost volatility.
It is noted that solar panel typically account for 30 percent of total solar EPCC project costs.
It opined that solar EPCC players with primary exposure in utility-scale projects are most vulnerable to raw material
cost fluctuation due to the longer project turnaround period of 18-24 months vs residential/C&I rooftop solar projects, which typically have shorter turnaround period of 3-6months, allowing for quicker pricing adjustments.
However, it expects earnings impact to remain manageable for the utility-scale EPCC players at current juncture, mitigated by on-going long term supply contracts entered with suppliers and cost pass-through mechanisms for major equipment price fluctuations clause embedded in the majority of EPCC contracts.
Based on its channel checks, the latest quoted solar panel price ranged in between $0.11-0.12/watt indicating a 20-30 percent increase from average panel price of $0.09/watt in the fourth quarter of 2025.
The uptick can be attributed to several factors, including the earlier increase in polysilicon prices, the recent rally in silver prices, and China’s planned cancellation of the 9 percent value-added tax (VAT) export rebate for solar PV products effective April 2026.
The impending policy change has triggered front-loaded procurement activity ahead of the rebate removal, resulting in stronger than-expected near-term demand for solar panels.
“As demand normalizes post-April 2026, alongside stabilizing silver prices, industry participants broadly expect panel prices to stabilize at $0.12–0.13/watt range in 2026, assuming manufacturers fully pass through the 9 percent value added tax (VAT) removal,” said the research house.
Maybank also highlighted that global solar panel oversupply situation still persists as global supply capacity of about 1.4TW remains significantly above the 693GW global demand for solar panel in 2025.
“Demand in 2026 is expected to soften due to lower projected solar installations in China,” said Maybank.
It is noted that reported forecasts indicate installation of 180-240GW in 2026, compared with 315GW in 2025, due to a policy shift to market-based pricing scheme which lowered new projects’ revenue.
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