Sime Darby Property leads nation's first community solar rollout under NETR with TNB

The Star

29-04-2025

Solar generation via leasing of rooftops from residential homes will be channelled to green consumers of nearby commercial and industrial properties, commencing with the City of Elmina.
PETALING JAYA: Sime Darby Property in collaboration with Tenaga Nasional Bhd (TNB), has become the first company in Malaysia to harness the power of solar energy under the country's National Energy Transition Roadmap (NETR) via Malaysia's inaugural Community Renewable Energy Aggregation Mechanism (CREAM) initiative.
This initiative is part of the government's recently launched CREAM framework, introduced by the Energy Transition and Water Transformation Ministry (PETRA) in March 2025, to empower community-based renewable energy generation and promote wider access to green electricity through Local Energy Generators and Aggregators (LEGA).
Sime Darby Property's group managing director and chief executive officer Datuk Seri Azmir Merican said, 'Our participation in the CREAM initiative with TNB introduces a practical and scalable model to unlock solar generation capacity from within our townships.
'By leasing roof spaces from residential properties, without requiring homeowners to install panels, we enable clean energy generation that supports our nearby commercial and industrial developments.
'This approach complements our broader decarbonisation strategy, aligns with national energy objectives, and directly contributes to our emissions reduction targets.'
Azmir said participation in the CREAM initiative with TNB introduces a practical and scalable model to unlock solar generation capacity from within Sime Darby Property's townships.
By becoming the nation's first LEGA under the CREAM policy, Sime Darby Property underscores its commitment to inclusive, sustainable development in support of Petra's vision and the national renewable energy goals.
The company has committed to reducing Scope 1 and 2 emissions by 40% by 2030 and achieving net zero carbon emissions by 2050.
Working with TNB's solar subsidiary GSPARX Sdn Bhd, Sime Darby Property will enter into lease agreements with residential homeowners interested in participating in this programme, starting with those in the City of Elmina.
Rooftops of participating homes will be utilised to generate electricity, which will be exported via the local distribution line within a 5km radius for use at Sime Darby Property's commercial and industrial developments. This streamlined approach not only reflects the renewable energy efforts by the company but also supports the country's agenda to transition to green energy sustainably and efficiently.
The CREAM mechanism enables Local Green Consumers (LGC) such as businesses and commercial users to source electricity from LEGA participants through TNB's distribution network. It allows homeowners to lease rooftops to third parties who manage and aggregate these spaces into efficient solar photovoltaic power systems. This collaboration represents a tangible model for grassroots participation in clean energy and public-private synergy.
The latest collaboration between the two parties comes on the heels of a joint venture established by Sime Darby Property and TNB's GSPARX in July 2024, focusing on financing, developing and operating rooftop solar generation projects across selected assets and properties in the SDP's portfolio. This followed an MoU between the two parties in 2023 to explore sustainable energy infrastructure, including solar, EV charging and microgrid systems across the group's townships.
Through this pilot rollout, Sime Darby Property and TNB are contributing towards Malaysia's target of achieving 70% renewable energy capacity by 2050, as outlined under NETR and PETRA's strategic direction.