PETALING JAYA: KPower Bhd’s wholly-owned subsidiary KPower Engineering Sdn Bhd has entered into a memorandum of agreement with Public Islamic Bank Bhd (PIBB) to provide the financing and installation of solar photovoltaic (PV) systems to the latter’s customers in relation to the net energy metering (NEM) scheme.
The scheme introduced by the Sustainable Energy Development Authority (SEDA) provides an avenue for consumers to install solar PV systems on their building to encourage the public to play a role in mitigating climate change by generating energy for private consumption.
With the NEM 3.0 scheme announced on Dec 29, 2020, a total of 500MW quota shall be allocated between 2021 to 2023.
Under the agreement, KPower will carry out installation works and provide support to PIBB on all technical matters involved to secure solar installation contracts for potential customers, while the bank will promote the group as one of the suppliers and contractors such works and provide financing to the potential customers.
It revealed that the agreement is for a duration of 24 months which includes joint promotion and marketing efforts targeted at the NEM 3.0 initiatives encompassing solar installations on domestic and residential building under the program NEM Rakyat and Nova for installation on commercial and industrial buildings.
KPower group managing director Mustakim Mat Nun commented the partnership with the Islamic bank will provide its customers with a one-stop solution and support its vision of sustainability by encouraging the consumption of clean energy.
He opined that the NEM scheme will benefit electric consumers and combat the issue of climate change, but funding is one of the challenges for consumers to install a solar PV system.
“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 have caused setbacks to the NEM scheme,” he said in a statement today.
Through the partnership, the group can create revenue synergies through its expertise in renewable energy and leverage the banks’ extensive database and existing clients.
The agreement is expected to generate business activities to KPower’s revenue from 2021 to 2023.
It aims to secure up to 50MW or 10% of the NEM 3.0 quota.