Harnessing solar energy has been limited. The largest solar installations are solar water heating systems in hotels, small food and beverage industries and upper middle class urban homes. It is estimated that there are no less than 10,000 units of domestic hot water systems installed now.

A third of the Government's total allocation of RM469 million for rural electrification programmes under the Seventh Malaysia Plan has been allocated for the provision of solar powered installations for rural and remote communities.

A 100 kWp Demonstration Photovoltaic Project was implemented under the initiatives of the Ministry of Energy, Water and Communications, and the Japanese Government, represented by NEDO in Marak Parak, Sabah. The project was completed in 1995. The project has given the necessary beginning for the effective and efficient transfer of technology in the field of PV power generation.

TNB Research Sdn, Bhd is undertaking a research project on Photovoltaic Grid Connected Roof Solar 3KW. It is funded by the trust fund (RM500,000).

There is also a demonstration project 'Hybrid Diesel Solar PV' by Persatuan Pencinta Alam Malaysia funded by the trust fund (RM 472,000).