“Get solar now.” “Solar lowers your electricity bills.”
That’s how solar is usually discussed in Malaysia — and for many businesses, that part is true. But today, solar for businesses in Malaysia is no longer just about cost savings.
Installing solar also changes energy and carbon data — how much electricity a business uses, how much comes from renewable sources, and how much carbon is linked to that electricity. These numbers increasingly matter when businesses are assessed for financing, partnerships, sustainability reporting, and long-term risk.
This is why solar now shows up in ESG discussions in Malaysia — because it directly affects how businesses are evaluated and compared.
Why Energy Matters in ESG for Malaysian Businesses
ESG (Environmental, Social, and Governance) covers many areas, including governance practices, labour standards, safety, ethics, and environmental performance. Within the Environmental (“E”) pillar, energy use and emissions are often the first focus for Malaysian businesses. This is because:
- Electricity consumption can be measured accurately (kWh)
- Emissions linked to electricity use can be calculated
- Performance can be tracked year on year
- Data can be verified for sustainability reporting
In Malaysia, where electricity largely comes from the grid, energy use is one of the clearest environmental indicators in ESG assessments. Solar becomes relevant because it is one of the most direct ways businesses can change their energy and emissions profile.
How Solar Improves ESG Data in Practical Terms
When a business installs solar panels, the impact goes beyond electricity bills. Solar directly affects ESG-relevant metrics, including:
- Lower grid electricity consumption (kWh)
- A higher percentage of energy from renewable sources
- Lower carbon emissions linked to electricity use
- Lower emissions intensity over time (less carbon for the same level of output)
These indicators are commonly used in ESG and sustainability reporting in Malaysia and internationally. They are measurable, comparable, and auditable — which is why solar often becomes part of ESG conversations as data, not marketing.
What These Changes Signal About a Business
Improved energy and emissions data signal more than environmental awareness. They indicate that a business:
- Relies less on fossil-fuel-based grid electricity
- Is less exposed to future electricity price increases
- Is better prepared for energy-related regulatory and cost changes
From an ESG perspective, this reflects how well a business manages energy risk and transition risk — both increasingly relevant in Malaysia as sustainability reporting expectations grow.
Why Solar and ESG Matter in Real Business Decisions
Energy and ESG data influence real decisions, not just reports.
Investors and banks
Energy exposure and emissions performance increasingly factor into long-term business risk assessments, especially for capital-intensive or energy-heavy businesses.
Customers
Many companies now consider sustainability alignment when choosing suppliers. Energy performance is one of the most visible ways suppliers demonstrate this.
Suppliers and business partners
Businesses linked to listed companies, multinational groups, or export-oriented supply chains are increasingly asked for sustainability-related data. This data often feeds into ESG disclosures aligned with frameworks referenced by Bursa Malaysia.
In simple terms:
- businesses without clear energy data can appear higher risk
- businesses with transparent energy and emissions data are easier to assess and trust.
What Solar Can — and Cannot — Do for ESG
Solar is effective, but it is not a complete ESG solution.
What solar does well
- Reduces electricity costs for businesses in Malaysia
- Lowers carbon emissions linked to grid electricity
- Produces verifiable, year-on-year ESG data
- Supports long-term energy cost stability
What solar does not address on its own
- Governance and compliance structures
- Labour, safety, and social practices
- Supply-chain ethics
- ESG reporting processes
Solar strengthens the Environmental (“E”) aspect of ESG — it does not replace the Social or Governance components.
Other Ways Businesses Improve the “E” Beyond Solar
Energy is often the most visible starting point, but it is not the only environmental factor that matters. Depending on the business, meaningful environmental improvements may also come from:
- Energy efficiency and process optimisation
- Water usage and wastewater management
- Material efficiency and waste handling
These actions can reduce environmental risk and compliance exposure. However, they are often slower to implement and harder to quantify than energy-related improvements — which is why many businesses start with solar.
Is Solar Always the Right Solution for ESG in Malaysia?
Not always. Solar may not be the best first step if:
- Roof or site conditions are unsuitable
- Electricity usage patterns don’t match solar generation
- Environmental risks are concentrated outside energy
- Baseline energy data is unavailable
Effective ESG planning starts with understanding energy and environmental exposure, not installing solutions blindly.
A Practical Way to Think About Solar and ESG
For many Malaysian businesses, solar is worth considering when it:
- Reduces operating costs
- Improves measurable energy and emissions data
- Strengthens how the business is assessed externally
For others, solar may be a later step, or part of a broader strategy, or not part of the picture at all.
At Sunview, we support businesses across:
- Commercial and industrial solar solutions
- Battery energy storage systems (BESS)
- Energy and emissions assessment
- ESG advisory to translate actions into clear reporting outcomes
Sometimes solar is the right move. Sometimes it isn’t — and understanding that distinction is part of responsible ESG planning.
So, what does this mean for Malaysian Businesses?
Solar isn’t just about lowering electricity bills anymore. In Malaysia, it also affects how businesses are assessed for cost stability, environmental risk, and long-term readiness. The goal isn’t to install solar just to meet ESG expectations. It’s to make energy decisions that make sense for your business — and let the data speak for itself.
If you’re unsure whether solar, BESS, or other energy measures make sense for your business, Sunview helps assess your energy profile and guide the right next steps — without forcing a solution.
For informational use only. Speak to our energy experts/ESG service providers before proceeding.
