RHB IB PROJECTS SOLAR SECTOR GROWTH ON HIGHER EPCC CONTRIBUTIONS, CGPP REVENUE RAMP-UP

KUALA LUMPUR, Dec 22 (Bernama) -- RHB Investment Bank Bhd (RHB IB) expects the solar sector to grow next year, driven by higher engineering, procurement, construction, and commissioning (EPCC) contributions.

In a research note today, RHB IB stated that the progressive ramp-up of recurring revenue from Corporate Green Power Programme (CGPP) assets, to be commercialised by the first quarter of 2026, will also drive growth in the energy sector.

“As CGPP-related orders are gradually recognised, Solarvest Holdings Bhd and Samaiden Group Bhd are actively replenishing them with new EPCC contract wins under the Large-Scale Solar (LSS) 5 and upcoming LSS6 programmes.

“Recurring income streams from these projects are estimated to commence from 2028 onwards,” it said.

RHB IB noted that the LSS5, LSS5+, and LSS6 could bring over 6.0 gigawatt (GW) of solar capacity to the market. This translates to RM18 billion worth of EPCC opportunities, providing a substantial pipeline for solar contractors and supporting earnings visibility through 2028. 

The research firm said the government is expected to impose a quota cap for the Solar Accelerated Transition Action Programme (Solar ATAP) rollout by the Energy Transition and Water Transformation Ministry, which would take effect on Jan 1, 2026.

 “The removal of quota also reduces reliance on costly battery storage, as it is not required for solar projects below 1.0 megawatt.

“Hence, we believe this could unlock new revenue streams and broaden private sector involvement, especially in residential solar projects,” it said.

-- BERNAMA