Gagasan Solar, Malaysia’s first Securities Commission (SC)-regulated solar fund, has announced it will be raising a total of RM200 million to enhance SMEs’ accessibility to solar energy. The solar energy investment firm plans to raise the initial RM50 million in equity through multiple rounds of funding, followed by leveraging the amount by up to RM150 million.
Helmed by managing partner Joshep Lee, Gagasan Solar was founded to bridge the gap that exists in Malaysia’s solar energy industry. Currently, the market is highly exclusive, allowing only large companies with deep pockets the ability to venture into the solar energy industry. Gagasan Solar is also backed by a management team with a strong background in finance and industry experience.
To ensure efficient risk management and act as an additional layer of oversight, registered private equity management corporation, Thinkat PE, formerly known as Senturia Capital Sdn. Bhd, has been appointed to manage the fund raise.
Thinkat PE is one of the seventeen private equity management corporations (PEMCs) registered with the SC in Malaysia.
“Solar energy presents a large, unique and immediate opportunity to achieve a win-win-win scenario for investors, the business community and the environment. For the investment community, solar energy offers attractive risk-adjusted yields, as it is defensive and recession-resistant in nature. For the business community, solar energy presents the opportunity to lower overall electricity expenses which can otherwise be allocated to more capital efficient avenues.
“From an environmental perspective, solar energy offers and immediate and direct positive impact by lowering carbon emissions. We are thrilled to be entering the solar investment sector during this time of great change. Technological advancement and innovation wait for no one, and it is crucial that Malaysia accelerates its efforts to expand the adoption of solar energy so that it becomes accessible nationwide,” said Lee.
Gagasan Solar’s foray into solar investment comes at a time where solar energy investment and consumption have been gaining more traction in the last few years. Realising the many benefits of renewable energy, the government had announced to increase the renewable energy installation capacity to 31% by 2025 and 40% by 2035 under its power generation plan.
Moreover, a study conducted by Gagasan Solar found that the revenue potential of the Malaysian market for commercial and industrial solar energy usage is up to RM25 billion per annum. Therefore, the firm is seeking potential investors to join it in the pursuit of making solar energy more accessible to SMEs.
“We’re raising funds to capitalise on this blue ocean opportunity and accelerate the adoption of solar energy. With this acceleration, we hope to create a win-win-win situation for our capital partners, the environment and companies that will eventually experience reduced utility bills, thus resulting in resource conservation in the long run,” Lee said.