KUALA LUMPUR: Tune Protect Group Bhd has partnered with Verdant Solar to introduce the country’s first integrated residential solar and insurance protection model, a move aimed at accelerating rooftop solar adoption as Malaysia advances its renewable energy transition.
The collaboration embeds insurance protection directly into residential solar installation packages, offering homeowners coverage against accidental damage and loss of electricity savings if solar systems are disrupted.
Industry players say the model could help address one of the key barriers to solar adoption – perceived financial risk – at a time when the country is pushing to expand renewable energy capacity under initiatives such as the Solar Accelerated Transition Action Programme.
Speaking at the launch, Tune Protect Malaysia’s appointed representative, Hans-Joachim Zimmermann, said the partnership reflects a broader shift in how insurance can support sustainability efforts.
“Today’s launch represents a new approach to supporting Malaysia’s energy transition at the household level. As more homeowners explore rooftop solar, their long-term investments must be supported by protection that provides greater peace of mind.”
Under the partnership, homeowners installing solar systems through Verdant Solar will automatically receive insurance protection embedded within the installation package. The coverage includes protection against accidental damage from events such as storms, lightning, or fire, as well as compensation for the loss of electricity savings when systems are unable to generate power due to insured incidents.
Zimmermann said integrating protection into the solar offering simplifies the adoption journey and supports consumer confidence. “Solar systems are a significant long-term investment, yet they remain vulnerable to unexpected incidents. Our role is to bridge this gap and make sustainable living practical, secure and achievable for Malaysian households.”
The initiative comes as the residential solar market in Malaysia continues to expand but remains largely untapped.
According to Verdant Solar CEO Zeth Lim, rooftop solar adoption has grown rapidly over the past decade, but still represents only a small fraction of the potential market.
“Solar energy in Malaysia is no longer a niche solution,” he said.
“In 2013, about 5,000 homes were installed with solar in a year. Last
year, the number rose to more than 30,000 units, representing a roughly 20-fold increase over the past 12 years.”
Despite the growth, Lim noted that adoption remains low relative to the number of landed homes nationwide.
“Out of around four million landed homes in Malaysia, only about 100,000 currently have solar installed,” he said, adding that this leaves significant room for expansion as energy costs rise and environmental awareness grows.
A typical residential solar system can offset between 60% and 90% of household electricity consumption while generating savings over a lifespan of around 20 to 25 years, Lim said.
However, homeowners are increasingly considering system protection and long-term investment security when deciding whether to install solar.
“This partnership becomes transformative because customers want peace of mind when installing solar panels. Solar adoption requires more than technology; it requires a strong ecosystem where installers, financiers, policymakers and insurers work together,” Lim said.
The partnership will initially focus on new customers installing solar systems through Verdant Solar before expanding the offering to the company’s existing customer base and potentially other homeowners in the market.
Lim said Verdant Solar currently has around 10,000 existing customers and aims to extend the protection offering to them in later phases.
Executives from both companies said reducing perceived risks could also unlock further financing options for homeowners considering solar investments.
Lim noted that lowering risk exposure may encourage financial institutions to offer more competitive financing packages for solar installations in the future.
“One of the biggest barriers to solar adoption is risk and financing. By reducing risk, we hope banks will eventually offer better financing terms, such as longer tenures or more attractive interest rates, making solar even more accessible,” he said.
From the insurance perspective, Tune Protect sees partnerships like this as part of a broader strategy to embed protection into sustainability-driven products and services.
Zimmermann said the initiative aligns with the group’s environmental, social and governance framework and its longer-term goal of achieving net-zero emissions for Scope 1 and Scope 2 by 2050.
He added that encouraging residential solar adoption contributes to climate resilience and supports Malaysia’s broader clean energy ambitions.
“With more households adopting rooftop solar, we are not only supporting renewable energy usage but also strengthening communities’ ability to transition toward a low-carbon future,” Zimmermann said.
The Sun Malaysia
