KUALA LUMPUR (Jan 27): KPower Engineering Sdn Bhd (KPEng), a wholly-owned subsidiary of KPower Bhd, has entered into a memorandum of agreement (MOA) today with Public Islamic Bank Bhd (PIBB) on the financing and installation of solar photovoltaic (PV) systems for PIBB’s customers in relation to the net energy metering (NEM) scheme.
KPower’s group managing director Mustakim Mat Nun said the NEM scheme, which falls under the purview of the Sustainable Energy Development Authority (SEDA), provides the avenue for electricity users to install solar PV systems on the roofs of their respective buildings for electricity cost savings.
He said the scheme also encourages the public to play an active role in mitigating climate change where clean energy can be generated for private consumption.
"NEM 3.0 was announced on Dec 29, 2020 and a total of 500 MW quota shall be allocated for the period starting 2021 until 2023.
"Under the MOA, KPEng shall carry out the installation works and provide support to PIBB on all technical matters relating to the securing of solar installation contracts for potential customers, whereas PIBB shall promote KPEng as one of the suppliers and contractors for solar installation works and provide financing to the potential customers," he said in a statement today.
Mustakim said the tenure of the MOA shall be 24 months with the promotion and marketing joint efforts to be targeted at NEM 3.0 initiatives such as Program NEM Rakyat, which involves solar installations on domestic or residential buildings, and Program NOVA, which covers solar installation on commercial and industrial buildings.
"The concept of NEM is introduced to benefit electricity users and at the same time preserve the environment in efforts to overcome the global issue of climate change.
"However, challenges arise from the lack of funds or the accessibility to install the system especially for private consumers. With this total solution, KPower and PIBB will be able to provide both the installation together with the financing to our customers which would eliminate the two main issues that has caused setbacks to the NEM scheme," he said.
Through the partnership, the group can immediately create revenue synergies through its existing ability as a specialist in renewable energy while leveraging on PIBB’s extensive database and existing clients.
“The partnership with PIBB, being one of the leading Islamic banks in Malaysia, in providing this one-stop solution to our customers will further support our vision of green and sustainability by encouraging consumption of clean energy. The MOA is a testimony to our ability in the solar segment and we are grateful for the trust that has been given to us by PIBB, our partners and affiliates," he said.
Business activities from the MOA shall contribute to KPower’s revenue from the financial year ending (FYE) 2021 until FYE 2023.
Solar will play an important role in KPower’s product offering going forward, of which NEM will be among the key contributor. KPower is aiming to secure up to 50MW of the NEM project or 10% of the quota under NEM 3.0.