Prime Minister Datuk Seri Anwar Ibrahim has announced additional incentives to boost electric vehicle (EV) adoption as well as solar panel installation in homes, as part of Budget 2024 that is being tabled today.
These incentives are in line with the goals set in the National Energy Transition Roadmap (NETR), moving into renewable and sustainable energy sources. For electric vehicles, the Prime Minister welcomed the investments by companies including TNB, Gentari, and Tesla that accelerated EV charging infrastructure in the country – over 180 stations are already set up today, with more to come. Interestingly, Datuk Seri Anwar also stated that the Federal Administration will begin utilising electric vehicles as official vehicles.
In line with its goals, the government is extending existing tax incentives to further encourage EV adoption. For individuals, this covers the income tax relief of up to RM2,500 on EV charger rental, purchase, and installation; and for companies, this applies to the tax deductions on EV rental. Both of these incentives will be extended until 2027.
Meanwhile, the government is also encouraging the adoption of electric motorcycles through the new Skim Galakan Penggunaan Motosikal Elektrik, applicable to all Malaysians with annual incomes of RM120,000 or less. The scheme will offer direct rebates on purchases of electric motorcycle purchases up to RM2,400.
As for solar incentives, the government will continue to encourage individuals to install solar panels in their homes. For instance, the Net Energy Metering (NEM) programme, which was due to end this year, will be extended until 31 December 2024. This programme allows individuals to offset excess electricity generation back to the grid and earn credits that can be used to pay for subsequent electricity bills.
In addition, the government is developing a “buy back” programme for solar panels and is encouraging companies to offer solar subscription programmes at zero upfront cost for consumers similar to the model introduced by Sols Energy and Gentari.
Lastly, the government is also demonstrating its commitment to a low-carbon economy by embarking on a pilot project with TNB and Gentari to install solar panels on the rooftops of Federal Government buildings.
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