Solar energy adoption faces financing hurdles in Malaysia and UK

Middle-class households in Malaysia are increasingly turning to solar energy to mitigate rising electricity costs driven by fossil fuel dependence and new tariff structures. While high upfront installation costs remain a barrier, government initiatives such as the Solar for Rakyat Incentive Scheme (SolaRIS) and the Solar Accelerated Transition Action Programme (Solar ATAP) are providing rebates and mechanisms to feed excess electricity back into the grid.

In the United Kingdom, a report from the Common Wealth thinktank suggests that the government should intervene to make solar panels more accessible to lower-income households. Current installation costs, ranging from £5,000 to £10,000, are often prohibitive, and high-interest commercial loans can negate energy savings. The report proposes the use of ‘solar bonds’—retail investment products similar to premium bonds—to fund a universal entitlement to solar panels and reduce household energy bills.