Malaysia’s renewable energy (RE) sector is entering a decisive growth phase and the momentum is only accelerating. According to Maybank Investment Bank Group (Maybank IBG), the continued rollout of large-scale solar programmes, combined with the rising adoption of battery energy storage systems (BESS), is set to redefine the country’s clean energy landscape over the coming decade.
In its latest sector update, Maybank IBG reaffirmed its positive outlook on the RE space, highlighting utility-scale projects such as LSS6, CRESS and MyBeST as key long-term growth pillars. While solar remains the backbone of Malaysia’s clean energy transition, BESS integration is emerging as the sector’s next critical differentiator, with 2026 expected to mark a turning point.
Why BESS Matters More Than Ever
As solar penetration increases, managing intermittency becomes essential. Maybank IBG expects demand for BESS to rise sharply as Malaysia scales up its solar capacity projected to account for 14% of the national grid by 2030 and 25% by 2035. BESS enables energy to be stored and dispatched efficiently, stabilising the grid while unlocking greater value from renewable generation.
This shift presents a strategic opportunity for RE players to stand out not just through project wins, but through technical expertise, system integration capabilities and proven execution track records, particularly in utility-scale deployments where specialist experience remains limited.
Strong Earnings Visibility Fuels Growth Confidence
Maybank IBG projects aggregate core net profit growth of 24.2% in 2026, following an estimated 34.5% expansion in 2025. The growth outlook is supported by robust earnings visibility from ongoing and upcoming engineering, procurement, construction and commissioning (EPCC) projects, including LSS5, LSS5+, MyBeST and CRESS.
Adding to the upside, the introduction of Solar ATAP is expected to reinvigorate Malaysia’s residential rooftop solar market, offering another demand catalyst for sector players.
Attractive Valuations and Selective Opportunities
Despite the strong fundamentals, sector valuations remain compelling. Maybank IBG noted that Malaysia’s RE sector is trading at a forward 2026 price-to-earnings ratio of 22 times, broadly in line with its five-year average. Several smaller-cap RE companies are currently trading one standard deviation below historical valuation norms, creating selective entry opportunities for long-term investors.
The Companies to Watch
As BESS adoption accelerates, companies with growing exposure to energy storage solutions are well-positioned to benefit. Maybank IBG highlighted names such as Solarvest Holdings Bhd, Pekat Group Bhd and BM Greentech Bhd, alongside smaller players including Samaiden Group Bhd and Northern Solar.
Solarvest remains Maybank IBG’s top sector pick, backed by its dominant 30% market share in utility-scale solar projects and its strong positioning to secure future BESS contracts. The research house also initiated coverage on Pekat Group with a BUY rating and a target price of RM1.98, citing its exposure to renewable energy, grid infrastructure upgrades and data centre expansion.
Meanwhile, BM Greentech continues to receive a BUY recommendation, supported by the rollout of Solar ATAP and a potential rebound in residential rooftop solar demand.
Powering the Future
As Malaysia pushes forward with its clean energy ambitions, the convergence of large-scale solar, grid upgrades and BESS integration is creating a powerful growth runway. For RE players willing to invest in capability, execution and innovation, the next chapter of Malaysia’s energy transition may prove to be the most rewarding yet.
