Heavy machinery, production lines, and continuous operations make factories the biggest energy consumers. Kilang solar can cut costs by up to 75% and improve margins — and with GITA incentives expiring in December 2026, there has never been a better time for your solar panel kilang investment.
Energy is often the second-largest operating expense after raw materials. Kilang solar transforms overhead into competitive advantage — and Malaysia's manufacturers are moving fast to adopt solar panel kilang systems before competitors do.
❌ Maximum demand penalties can double electricity bills
✓ Solar + battery flattens demand curve, slashes charges
Industrial HVAC
❌ Climate control for production floor and materials
✓ Free daytime power for all cooling systems
Factory Floor Lighting
❌ High-bay lights across vast production areas
✓ Solar powers all daytime lighting needs
Multi-Shift Operations
❌ Extended hours = high peak tariff exposure
✓ Solar + battery provides 24/7 cost savings
Global Competition
❌ Need every cost advantage to compete internationally
✓ Lower energy costs = better margins & pricing power
Solar Systems by Factory Size
Small Workshop
System Size:
30-50 kWp
Investment:
RM 100K - 170K
Monthly Savings:
~RM 4K/mo
Medium Factory
System Size:
100-200 kWp
Investment:
RM 350K - 700K
Monthly Savings:
~RM 15K/mo
Large Manufacturing Plant
System Size:
300-500 kWp
Investment:
RM 1.05M - 1.75M
Monthly Savings:
~RM 38K/mo
Industrial Complex
System Size:
500–1,000 kWp
Investment:
RM 1.75M–3.5M
Monthly Savings:
~RM 55–110K/mo
Industrial-Scale Returns
2-3
Years Payback
25+
Years Lifespan
750%+
Total ROI
Example: 300 kWp System for Manufacturing Plant
Initial Investment
RM 1,050,000
Monthly Savings
RM 36,000
Annual Savings
RM 432,000
25-Year Savings
RM 10,800,000
Maximum Demand (MD) Charges
The Hidden Cost Destroying Factory Margins: TNB's Demand Charge
Most kilang solar proposals focus on energy (kWh) savings alone — but for medium voltage factories on TNB's E1M or E2M tariff, the maximum demand (MD) charge is often a larger cost line than the energy charge itself. For a solar panel kilang investment to deliver maximum ROI, demand charge reduction must be part of the strategy.
Under TNB's RP4 tariff structure (effective July 2025), medium voltage industrial consumers pay RM 97.06/kW/month as a maximum demand charge. This is billed on the single highest 30-minute demand reading in the billing cycle — meaning one production surge or machine startup event can inflate your bill for an entire month.
MD Charge Example: 500 kW Kilang
Maximum demand reading500 kW
TNB MD rate (RP4, MV)RM 97.06/kW/month
MD charge alone per monthRM 48,530
With solar peak-shaving (30% MD reduction)RM 33,971/month
Monthly MD savings from solarRM 14,559/month
Solar panels reduce maximum demand by generating power during production hours, directly lowering the grid import reading. Adding a BESS enables demand flattening — the battery discharges during machine startup spikes, preventing the demand peaks that drive up MD charges. Combined solar + BESS systems routinely achieve 30–50% MD reduction, translating to RM 10,000–50,000 in monthly savings for medium-to-large factories.
Based on RM 97.06/kW/month (RP4 MV rate) × 30% demand reduction
Why Solar Reduces MD Charges
1. Solar generates peak power during production hours (8am–5pm)
2. Grid import drops during generation, lowering the 30-min peak reading
3. BESS discharges during machine startup spikes — the biggest MD driver
4. Lower MD reading = lower MD bill for the entire billing month
Malaysia's Major Industrial Parks
Kilang Solar Across Malaysia's Key Industrial Zones
We install solar panel kilang systems across all of Malaysia's major industrial parks. Each zone has unique grid infrastructure, TNB substation capacity, and solar potential — understanding these differences is critical to maximising your system output and ROI.
Slashing Maximum Demand (MD) Charges for Factories
Malaysia's TNB tariff structure charges factories a separate Maximum Demand (MD) fee based on the single highest 30-minute power reading each month. Under the E1 tariff, this rate is RM 30.30/kW. Under the higher E2 tariff (for consumers above 1,000 kW), it rises to RM 45.10/kW. For large factories, this MD charge alone can exceed RM 40,000–100,000 per month — often dwarfing the energy (kWh) charge on the same bill.
Rooftop solar directly clips peak demand spikes during daytime production hours. When your panels are generating at full capacity between 9am and 4pm, the grid import reading falls proportionally — and so does the 30-minute peak that determines your MD charge for the month. The effect is immediate: factories typically see MD readings drop by 20–35% in the first full billing cycle after commissioning.
Concrete Example: 500 kW Peak Demand Factory
Peak demand (before solar)
500 kW
MD charge: RM 15,150/mo (E1)
After 200 kWp solar
~350 kW
MD charge: RM 10,605/mo (E1)
MD savings alone
RM 4,545/mo
≈ RM 54,000/year
That is RM 54,000/year before counting a single sen of kWh savings. Add kWh savings and most factories see total annual savings of RM 150,000–500,000 from a 200 kWp system.
For factories running night shifts or operating in non-solar hours, battery storage (BESS) takes MD reduction further. The battery charges during mid-day solar surplus and discharges during evening startup spikes — the single biggest driver of high MD readings. Combined solar + BESS systems have achieved 40–55% MD reduction in Malaysian factories, unlocking savings that solar alone cannot capture.
Solar for Export-Oriented Manufacturers: ESG & CBAM Compliance
The EU Carbon Border Adjustment Mechanism (CBAM) now applies to Malaysian exporters selling steel, aluminium, cement, fertilisers, and electricity-intensive goods into Europe. From 2026 onwards, CBAM certificates will be required for every tonne of embedded carbon in exported products — and the cost of those certificates is expected to be EUR 50–80 per tonne of CO₂. For Malaysian manufacturers, this creates a direct financial incentive to decarbonise production now rather than pay the CBAM levy later.
Beyond CBAM, MNC buyers — particularly Tier 1 automotive OEMs, electronics brands, and European retailers — are increasingly requiring RE100 commitment and carbon reduction evidence from their Malaysian suppliers. A rooftop solar installation provides exactly that: a measurable, auditable, permanent reduction in Scope 2 emissions. A 1 MWp solar system avoids approximately 1,200 tonnes of CO₂ over 25 years — a figure that can be independently verified and reported in your ESG disclosure or supplier audit questionnaire.
CBAM Impact on Malaysian Exporters
•Mandatory CBAM reporting began October 2023 — financial levy kicks in 2026
•Each tonne of CO₂ embedded in exports = CBAM certificate cost (est. EUR 50–80/t)
•Renewable energy use directly reduces your embedded carbon calculation
•Solar documentation provides auditable proof accepted by CBAM authorities
RECs: Turn Carbon Reduction into Revenue
•Renewable Energy Certificates (RECs) can be generated from your solar output
•Trade RECs on Bursa Malaysia's voluntary carbon exchange
•1 MWh of solar generation = 1 REC tradeable at RM 5–30/MWh
•RECs satisfy MNC supplier RE100 requirements — a procurement advantage
Pemasangan Panel Solar Kilang: Strategi Penjimatan & ESG
Pemasangan solar panel kilang Malaysia kini menjadi strategi kewangan terpenting bagi pengusaha kilang yang ingin mengurangkan kos operasi dan meningkatkan daya saing. Dengan elaun cukai GITA (Green Investment Tax Allowance) sebanyak 60% elaun cukai ke atas perbelanjaan modal sistem solar, kilang bersaiz sederhana boleh mengurangkan liabiliti cukai mereka secara signifikan dalam tempoh 3 tahun pertama. Selain itu, pemasangan solar kilang yang terancang dengan baik boleh menjimatkan 30–50% daripada bil TNB bulanan — bermakna kilang dengan bil RM 80,000 sebulan berpotensi menjimatkan RM 24,000–40,000 setiap bulan selepas sistem dipasang.
Faedah kewangan tidak terhad kepada penjimatan tenaga sahaja. Pengurangan caj Maximum Demand (MD) adalah satu lagi sumber penjimatan besar yang kerap diabaikan — dalam banyak kes, caj MD menyumbang 30–50% daripada jumlah bil elektrik kilang. Sistem solar yang direka khas untuk kilang anda akan mengurangkan bacaan puncak grid semasa waktu pengeluaran siang hari, secara langsung menurunkan caj MD bulanan. Dengan sokongan pensijilan REC (Renewable Energy Certificate) melalui Bursa Malaysia, kilang berorientasi eksport juga boleh memenuhi syarat ESG pembeli MNC dan mengelak bayaran tambahan di bawah mekanisme CBAM Kesatuan Eropah. Hubungi kami hari ini untuk Audit Tenaga Kilang percuma dan laporan ROI terperinci.
Common questions from factory and manufacturing owners about solar energy
How do I size a solar system for my factory in Malaysia?
Factory solar sizing is based on your maximum demand (kVA), daily operating hours, and roof or ground area available. A typical 10,000 sqft manufacturing floor with two shifts may require a 200–300 kWp system. We analyse your TNB bill — specifically the maximum demand charge and energy consumption (kWh) — to design a system that offsets 70–80% of daytime production costs. Most Malaysian factories qualify for systems from 100 kWp up to 1,000 kWp (the ATAP maximum for non-domestic consumers).
Should a factory use rooftop or ground-mounted solar panels?
Most factories use rooftop mounting because large flat industrial roofs — typically 5,000 to 50,000 sqft — provide ideal surfaces for high-density panel arrays at no additional land cost. Ground-mounted systems are viable for factories with open land, often achieving slightly higher output due to optimal tilt angles. Many large manufacturing plants in Malaysia combine both: rooftop panels for the main building plus ground arrays in unused yard areas, maximising generation and achieving 300–1,000+ kWp installed capacity.
Is my factory eligible for the GITA (Green Investment Tax Allowance) incentive?
Yes. Manufacturing companies that invest in solar PV systems are eligible for GITA under Malaysia's Green Technology Tax Incentive. GITA provides a 100% Investment Tax Allowance on qualifying capital expenditure for 3 years, which can be offset against 70% of statutory income. For a RM 1 million factory solar installation, this can reduce effective tax liability by RM 700,000 over 3 years. GITA applications are submitted through MIDA and we provide full documentation support for your submission.
Can solar help manage peak demand charges for factories?
Absolutely — and this is where factories see the biggest savings. TNB's maximum demand charge (RM 45.10/kW under tariff E1, or RM 89.27/kW under E2) can account for 30–50% of a factory's electricity bill. Solar reduces peak demand by offsetting the large loads during production hours. Adding a Battery Energy Storage System (BESS) allows further demand flattening — the battery charges during low-demand periods and discharges during production peaks, potentially reducing maximum demand by 20–40% and saving RM 5,000–50,000 per month depending on factory size.
How does solar installation work without disrupting factory production?
Factory installations are carefully phased to avoid halting production. We work in sections — completing one roof zone before moving to the next — so your facility remains fully operational throughout. Grid connection typically requires a 2–4 hour TNB shutdown window, which we schedule during planned maintenance breaks or weekends. A typical 200–300 kWp factory system takes 2–3 weeks to install. All electrical work is coordinated with your facility manager and complies with DOSH and TNB requirements.
Manufacture a Brighter Future
Get a custom solar proposal tailored to your factory's massive energy demands
Rooftop solar, inverter rooms, BESS and TNB grid in one engineered flow.
This is the architecture we want factory buyers to understand: PV generation reduces daytime kWh, storage protects peak periods, EMS tracks performance, and the grid remains synchronized for compliant operations.
Add EV Charging for Your Fleet
Electrify your factory fleet and reduce fuel costs with dedicated EV charging infrastructure. Combine solar power with EV charging for maximum savings on transportation.
Is Trexon Energy SEDA certified and TNB registered?
Yes. Trexon Energy (Thither Global (M) Sdn Bhd) is a SEDA-certified solar installer and registered TNB Solar ATAP provider. All our installations use SIRIM-certified equipment from tier-1 manufacturers including Huawei, Jinko Solar, Sungrow, and BYD. We handle the full NEM/Solar ATAP application with TNB on your behalf.
What warranty does Trexon provide?
We provide a comprehensive warranty package: 25-year performance warranty on solar panels (guaranteed 80%+ output at year 25), 10-year manufacturer warranty on inverters (extendable to 15-20 years), 10-year workmanship warranty on installation, and 1 year of free monitoring and maintenance. Our equipment comes directly from authorized distributors — no grey market products.
What happens if my solar system underperforms?
Every Trexon installation includes 24/7 remote monitoring via the Huawei FusionSolar or Sungrow iSolarCloud app. If your system underperforms the projected generation by more than 10%, our O&M team investigates within 48 hours — covered under warranty. We also provide a detailed ROI projection before installation so you know exactly what to expect.
