Energy Policies And Strategies For The Residential


Discuss the Residential Energy Policies and Strategies.



Governments around the world have become increasingly concerned with energy production and distribution.

However, these core activities are only a few of the many factors that influence organizations’ policies around the world.

All sectors need to find energy conservation solutions.

This essay focuses on the problem of residential energy conservation in Malaysia.

After energy crisis, the continuous depletion natural resources, climate change concerns, and rising global temperatures, energy conservation has become a key topic of discussion.

Inefficient systems, lack of awareness and high losses in residential sector lead to high wastage (Thumann 2010).

The essay will also discuss the reasons why energy is being wasted and the need for energy conservation in Malaysia’s residential sectors.

Due to the significant increase in energy needs of Malaysian residents, energy conservation in residential sector is an urgent issue.

The Malaysian residential sector has seen a significant increase in carbon dioxide emissions due to its high electricity consumption.

This essay will also address the issues in energy conservation and improve energy efficiency.

The best ways to increase energy efficiency in residential areas include increased public awareness, better building solutions, energy regulations and improved efficiency of domestic equipment.

This essay presents a summary of the various measures and policies that have been taken by authorities.

To address energy conservation problems, the government has implemented various strategies such as the national energy efficiency plan (NEEMP), bill rebates, energy rebate programme, and energy rebate program.

The essay will also discuss how phasing away of outdated technologies and the importance of renewable resources in maximising gains out of limited resources.

The second part also discusses international initiatives in the residential sector in energy conservation.

It is often said that energy saved is the same as energy produced.

It is possible to use the financial savings from reducing energy wastage and eliminating energy conservation problems for better social purposes (Dincer and Zamfirescu (2011)).

The revenue generated by these measures can go towards the development of future technologies.


The world’s energy consumption is on the rise, with an especially high rate in Asian countries.

Malaysia is no exception.

Malaysian residents do not have mandatory energy efficiency standards so energy conservation is essential.

Zaid and Graham, 2017, recommend 135kWh/m2/year as the recommended energy consumption in non-residential sectors.

But, residential sector has no equivalent consumption standard.

Energy conservation for residential sector is therefore a major concern of the government.

The subsidization of electricity in Malaysia to residential sector increases over-consumption. This also affects the balance of electricity markets.

Malaysia’s inefficient system has been there for many years.

Inefficient systems in Malaysia have been caused by a variety of factors, including inadequate energy planning, a lack of regulatory structure, leadership in energy efficiency programs and inconsistency when sustaining efforts for conservation.

Malaysia’s residential buildings are not energy efficient.

Single pane windows and daylight around windows or doors frame are all faults. Older electrical appliances, poor insulation, and weather-related damage can also lead to deterioration of exterior walls.

Also, loose microwave seals and placing a refrigerator next to heating appliances can cause energy wastage.

It can be difficult to control household electrical consumption.

They are not easy to enforce.

Household behaviour has a direct impact on conservation.

Attitude, socio-economic status, and demographics all have an impact on the behavior.

These socioeconomic factors, such as income, education, gender, and status, play a major role.

Malaysian energy production is largely based on traditional sources of energy.

These traditional sources are often inefficient.

The household is also a major emitter of carbon-dioxide. (Azlina, et.

Authorities often overlook the seriousness of energy conservation.

The savings made from energy conservation can be used for environmental protection and marginal parts of society.

Many measures have been taken in Malaysia to improve efficiency and increase energy conservation in residential areas.

Tiered electricity tariffs, which were established in 1970, were implemented.

These tariffs were inclusive of the cost after subsidies.

In 2008, the rebate on electric bills was also introduced.

This rebate program was also introduced in 2008.

All customers who had a monthly charge above RM20 paid all of their bills.

SAVE was launched in 2012, a few years later.

SAVE stands for Sustainability achieved through energy efficiency rebate programme.

This program was designed to eliminate inefficient domestic appliances and replace them with more efficient ones.

While these appliances are expensive initially, energy conservation will save you a lot of money.

For efficient appliances, financial incentives were provided by rebates.

Refrigerators and air-conditioners were eligible for rebates.

2007 saw the launch of Suria 1000.

This program was founded on the Fuel Policy’s promotion of renewable resources.

Bidding allowed consumers to receive rebates on photovoltaic system (PV).

A new mission, Feed in Tariff (FIT), was created in 2011 to improve PV efficiency.

This allowed for guaranteed grid access and lower prices for consumers.

The Goods & Service Tax (GST), which was implemented on electricity consumption by households in 2015, was applied.

A 6% tax was imposed on electricity consumptions above 300KWh.

This caused consumers to adopt energy conservation practices and properly utilise electricity (Bekhet & IvyYap, 2014).

National Energy Efficiency Master Plan (NEEMP), 2010-2015, was developed to improve efforts at all levels of society.

This plan promoted appliances with minimum energy performance standards (MEPS), and five-star ratings.

In 2017, a program was launched to distribute LED bulbs at low prices in Melaka state, Malaysia. This scheme also included the replacement of CFLs.

These measures, which were introduced by authorities to conserve energy, led to a substantial change in consumer behavior and consumption patterns.

It will take longer for results from holistic and more recent programmes to be shown.


Energy conservation has been a major topic of conversation around the globe.

Due to the increase in population and development urban infrastructure, residential sector energy consumption is on the rise (Gellings (2009)

Malaysian resources are continually being used for electricity and energy supply.

Inefficient systems and large amounts of energy are leading to huge losses for the exchequer.

Malaysia’s energy demand has increased by 210% between 1990 and 2009.

Malaysia’s total greenhouse emissions came from the residential sector, which accounted for almost half of them.

This country’s rapid growth in carbon dioxide emissions will cause it to move towards unsustainable development.

Malaysia is one of the most important developing countries to meet international standards for energy efficiency.

Energy conservation and control of energy wastage in residential areas is important.

Most problems in Malaysia related to environment or bio-diversity are due to inadequate measures for the development and administration of resources ( Zaid and.

It is hard to regulate the residential sector’s energy conservation in developing countries.

A large number of people first move towards a high-quality lifestyle.

These people are first buyers of energy-consuming homes and devices. They want a better life.

Because of the high price difference, inefficient systems can be built and used by everyday people.

Although certain appliances have minimum energy requirements, Malaysian has not set any design or construction standards that are mandatory for residential buildings.

Inadequacy of standards leads to energy waste and lower efficiency.

Malaysia’s government can save money by conserving energy and use it for other social purposes.

It is possible to use economic savings for the benefit of the poorest sections of society.

Malaysia’s residential sector has experienced a rapid growth.

The urbanization of Malaysia is increasing rapidly, due to both the economic growth and growing industrialization.

Malaysian employees in the public sector receive a monthly allowance for their homes.

The minimum house allowance was increased to RM300 by the government in 2015.

Employees living in quarters weren’t eligible for the allowance.

They were however entitled to this allowance after the announcement.

This will increase disposable income and result in more residential properties (Ging, 2015).

It is important to consider energy conservation in residential buildings. Therefore, any actions taken must be carefully planned.

Energy Conservation: Some Important Measures

Authorities should be considering all measures taken to conserve residential energy.

It is important to plan and implement measures taking into account all the pros and disadvantages.

The benefits of these measures must be greater than the costs.

These initiatives should be evaluated on a cost-benefit basis before being implemented (Karam & Morgan (2014)

Malaysia has taken several measures to accomplish this.

These initiatives are listed below.

Electric tariffs tied

Three-tiered electric tariffs were implemented in the 3rd Malaysian Plan (1976-1980).

Different rates were offered for different tiers.

The lowest tariffs received a great deal of management.

This led to electricity rates falling significantly below their actual cost in the lowest tier.

Subsidy was cut in every higher tier.

Prices in these categories rose substantially compared with the first tier.

The average price per unit increased with increasing consumer consumption.

This led to consumers being more careful about how much they consume power.

This way of encouraging electric conservation prevents customers from overconsumption.

Tiered electric tariffs were created on the basis that energy prices increase and consumers want to encourage energy efficiency and conservation.

Governments around the globe have tried the idea of tiered tariffs, but consumers don’t want to be discouraged from excessive electrical consumption.

The benefits of living a healthy, happy life with all the modern amenities is more important than the cost.

Consumption continues to rise and consumers purchase more energy-consuming appliances (Sioshansi (2013)).

Subsidy RM20

Tenaga Nasional Berhad, (TNB), introduced the plan on October 1st 2008.

Under this scheme, residential customers could get a rebate.

Customers who were billed under RM20 could be eligible for the rebate.

The bill was not due to the customer who is eligible for subsidy.

If customer’s monthly consumption exceeded RM20 (Tenage Nasional 2018).

This board scheme was designed to improve energy efficiency and increase awareness among customers.

The board offered a rebate of around 11.95 millions per month in the first year following the introduction.

1.05 Million customers were eligible for benefits from the board in 2008.

Board spent RM146million on exemptions in 2012.

The Star Online (2013) reported that 1.1 million customers were able to benefit from the scheme in the same year.

This scheme encourages energy conservation and the judicious use by households of resources. However, the government spends a lot to provide the subsidy.

There are many other benefits to this subsidy.

A government should use its funds to provide long-term solutions for the majority.

For years to promote energy efficiency, households should have financial resources. The government shouldn’t have to burden them.

Similar to tiered rates, people are not discouraged from using more electricity to live a higher quality life.

SAVE Program

Sustainability achieved through energy efficiency (SAVE), is a program that promotes energy efficiency and is supported by Ministry of Energy, Green, Technology and Water.

This program was designed for domestic consumers. It was launched in 2012.

The scheme offered a rebate for households that purchased refrigerators and air conditioners with 5 stars rating.

All Malaysian customers were eligible to receive the rebate for air conditioners.

Customers in Peninsular Malaysia were also eligible for this rebate on refrigerators.

All customers in Sarawak, Sabah and Sarawak were eligible for this rebate on refrigerators.

This programme has been funded by R50 million. The government aims to save 127.3GWh per year by 2020 (AWER, 2012).

The program was successful in reducing carbon dioxide emissions and consumption.

The scheme has led to a reduction in carbon dioxide emissions of 167 568,689 tonnes since 2014.

In the opposite direction, residential electrical consumption was reduced by 158.1 GWh. This has resulted in savings of RM34.4million. (KEETHA, 2014.

This program was intended to make use of renewable energy.

This program enabled a management team to generate electricity with Building Integrated Photovoltaic System.

They were also capable of connecting BIPV to grid.

The programme’s goal was to install 1MW worth of photovoltaic systems for commercial and domestic use.

There is bidding involved and consumers may receive discounts of up to 75%.

Under this program, the Energy Commission will offer discounts.

Nine calls were made for bidding between 2006 and 2009.

The discounts in each subsequent call were lower than the previous one.

United Nations supported the program, which promoted solar energy usage.

These programmes can really help to promote energy efficiency.

A further advantage of PV systems are that they don’t need any land for installation. This is a benefit which is normally not affordable in urban areas.

They also help to reduce carbon dioxide emissions and do not harm the environment.

The downside was that PV systems are expensive and people don’t understand them.

It was necessary to import PV modules.

Development required a lot of expertise and technology (Renewable Energy World 2007, 2007).

Goods & Services Tax

Malaysians have been paying Goods and Services Tax since April 2015.

GST replaced the previous sales and services tax.

It is a multistage tax that is collected on supplies goods and services.

GST is currently charged to domestic electricity consumers whose consumption exceeds 300KWh. The billing period lasts 28 days.

GST is not applicable to power consumption up to 300 KWh.

GST rates were set at 6%

GST applied to all charges for new connections as well as testing of meters (Tensaga Nasional (2018)).

GST was implemented to streamline the tax system in Malaysia, but it also led to an increase of prices for certain goods.

The tax imposed on domestic customers was intended to increase government revenues, improve energy efficiency, and raise revenue.

National Energy Efficiency Action Plan (NEEMP).

You can use energy intensity ratios to assess the country’s efficiency standards.

Malaysia’s energy efficiency has always been higher than 1.0 since 2000.

If the value is higher than 1.0, it means that there are inefficient systems and a lack of energy conservation.

A National Energy Efficiency Action Plan (NEEMP), 2010-2015, was created to address this problem.

Multiple actions were required to implement the plan.

It established a project team to promote energy efficiency, and implement the procedures.

It also sought to create capacity.

The plan included major research for the development of better processes, and systems.

This plan was initiated by departments and government agencies.

This plan was not targeted at any one consumer but instead took a holistic approach to energy conservation.

This plan focused on improving the quality and life of residents in the residential sector.

Under this plan, many steps were taken to increase energy efficiency in Malaysia’s residential sector.

One of these initiatives was the rating and labelling for appliances.

Most consumers don’t consider the cost of regular operation and maintenance when deciding on a product.

This holds true for domestic appliances.

This plan introduced rating systems for appliances.

Air-conditioners, refrigerators, and fans were all rated.

The majority of Malaysian households have refrigerators. This allows for substantial financial savings.

For new customers, a subsidy was offered for efficient appliances.

This helped customers to be more aware about the many benefits of highly rated appliances.

Appliances with 5 stars were purchased more often than others.

Similar to refrigerators, air conditioners were promoted in the same way.

Normal homes have between 3 and 4 air conditioners.

These 5-star rated air-conditioners are 10% better than conventional air conditioners.

The 5 star rated airconditioners can help improve energy conservation in your home.

Malaysia has an average of 3-4 fans per household.

Fans rated 5 stars are similar to air conditioners in that they increase energy efficiency at least 10% when compared with traditional fans (Keetha 2014).

The plan included another initiative to replace incandescent light bulbs with Compact Fluorescent (CFL) bulbs.

CFL can last for up to 6000 hours. Incandescent bulbs last approximately 1000 hours.

CFLs are more efficient and have a longer lifespan than incandescent bulbs, which is why they cost so much.

LED Distribution Programme

Malaysian state Maleka created a program to distribute LEDs at affordable prices to its residents in Sep 2017.

Each household will be supplied with 10 high quality LED bulbs.

They will be sold at a cost that is nearly half of what it costs to buy international market bulbs ($3-4).

The residents will be charged RM 10 per bulb.

1,000,000 9W LEDs will replace the 18W CFLs.

The annual carbon dioxide emissions from Maleka will drop by almost 19000 tonnes.

It will also lead to savings of about 10.22 millions RM each year.

All of these LED bulbs are guaranteed and can be replaced if they malfunction (The True Picture 2017).

Malaysians have been taking energy conservation measures to reduce their residential energy consumption for decades.

These initiatives have led to significant savings and a notable decrease in carbon dioxide emissions.

The problem of energy conservation remains due to increasing power consumption and increasing populations.

The adoption of better technology in other parts of the globe and the use of renewable resources can make a huge difference to these measures and greatly improve energy efficiency.

Renewable energy plays a significant role in energy conservation, improving efficiency across all sectors of management and reducing energy consumption.

Renewable energy sources are renewable, can be replenished, and help to preserve the environment, as well as reduce dependency on fossil fuel for energy generation ( Twidell & Weir 2015).

The residential sector can also make use of renewable energy.

This is especially true for Malaysia, where the country’s urbanization is driving a significant increase in energy use.

A variety of technologies and processes can be applied to mass-scale in Malaysian households to make use of renewable energy resources.

In a country such as Malaysia where the climate is hot and humid year round, solar energy could play a significant role in the residential sector.

Solar water heaters can be very efficient and require little maintenance, as most of their components are stationary.

Solar water heaters capture heat from the sun and transfer it to water.

The water absorbs any heat that is transferred.

The heated water can then be stored in insulated containers until needed.

These heaters are also possible to be placed on a terrace.

Solar ventilation preheating systems are also low-maintenance and can achieve energy efficiency levels up to 80%.

They can be mounted on south-facing walls and used to heat buildings that have high utility rates.

Geothermal energy, another renewable source of energy that is underutilized, is also a good option.

It uses heat from rocks and shallow ground that is below the surface of the Earth.

For heat extraction, geothermal heat pump are used.

The temperature at the top three meters of the Earth’s surface is between 10deg and 16deg Celsius. Residents can heat their homes with geothermal heat pumps. This technology can be especially helpful for large bungalows or large housing societies ( Hayter, Kandt 2011).

Bioenergy can be made from organic wastes or plants.

For energy generation, wastes from industries and municipalities can be used.

Agricultural residue is also used as an alternative energy source.

Pellet mills make wood pellets in dense forests that are less polluting.

These wood pellets are available for households to heat their homes.

Bioenergy Day 2018: Stoves and other appliances can also use these wood pellets.

Renewable energy sources are available in many ways.

The Malaysian government could invest in and promote these technologies to improve the climatic conditions, and minimize dependence on fossil fuels.

All countries around the globe are striving to improve their existing systems and create new capabilities for increasing energy efficiency in homes.

Malaysia can also learn from the best countries in order to conserve its resources and improve its standards.

The incessant consumption of fossil fuels causes climate change, such as flooding, droughts, global warming.

These changes affect the health and lifestyle of individuals ( Spalding 2010).

Smart technologies are a great way for households to increase their energy efficiency.

Singapore will soon adopt smart home technology. This is comprised of sensors and various devices that are installed in homes.

These devices can communicate.

These devices can also be controlled remotely.

This can increase efficiency by monitoring consumption patterns and making adjustments to your lifestyle.

Smart home technology is also beneficial for improving the safety of your home and enhancing your lifestyle.

The most commonly used devices in smart home technology are smart meters, and devices for automation.

Smart fans are capable of only operating when temperatures and humidity reach predefined levels (Bhati Hansen & Chan 2017).

In-home display (IHD) can give data on energy consumption in real time via app or display screens.

Consumers can get feedback about their energy use by using this app.

This information can be used to identify devices that aren’t energy efficient.

Research has shown that feedback is a powerful motivator for individuals to make changes in their lives in order to save energy.

Smart meters are capable of measuring energy consumption, and can manage the grid.

While smart meters cannot directly save electricity they can measure domestic power consumption at preset intervals like every 15 minutes, or every hour.

Smart meters can also be used to verify savings that result from energy conservation projects.

The use of artificial intelligence and machine learning to regulate the temperature and humidity of a room, smart thermostats are able to do this.

They can also easily be managed and monitored via app (IEA 2017).

Smart home technology is still very much in the early stages of development. There are many experiments going on to make these appliances more affordable.

For better energy efficiency, the Malaysian residential market can also benefit from these technologies.

These devices will need to be installed in homes with financial support and incentives through rebates.


This essay discusses energy conservation in Malaysia’s residential sector.

The Malaysian population is growing rapidly and the consumption of energy has increased significantly.

Urbanization is also influenced by rising incomes.

In the discussion, we also discuss energy wastage in Malaysian residential sectors and how to conserve it.

Energy wastage in the residential sector can be caused by overconsumption of residents, inefficient systems or use of traditional sources.

Residential buildings are not required to follow energy efficiency guidelines.

The country’s dependence on fossil fuel for energy has caused a substantial increase in carbon dioxide emissions.

This will lead Malaysia toward unsustainable development and worsen environmental conditions.

You can use the financial savings that are generated by reducing energy consumption and using efficient systems to help develop new technologies.

Malaysia’s government has developed and implemented several programs for energy conservation.

For residential energy conservation in Malaysia, the Malaysian government has undertaken various programmes for energy conservation. These include tariffed electric tariffs (Tiered Electric Tariffs), Suria 1000 scheme, RM20 scheme and GST on electricity bills.

These programs are discussed in detail in the essay.

National Energy Efficiency Action Plan offers a holistic approach to energy conservation.

This plan mandated mandatory labeling of appliances such as refrigerators, air-conditioners, and electric fans.

This program aimed to phase out incandescent light bulb and replace them with Compact Fluorescent (CFL) bulbs.

Maleka state, Malaysia, has also done LED distribution.

Tiered electric tariffs and RM20 schemes, as well as GST on electric bill, are designed to discourage overconsumption.

This essay also addresses the role of renewable energy to reduce energy wastage in Malaysian homes and improve efficiency.

Residents can use solar water heaters and bioenergy to provide their daily energy requirements.

Numerous new technologies are in development and being tested in other areas.

Smart homes are equipped with smart meters, smart fans as well as in-home displays and thermostats that monitor and control energy consumption.

Malaysia’s residential sector can also adopt renewable energy technologies and improve their energy efficiency.

Malaysian government will have to make great efforts and plan in order to reduce energy consumption and increase efficiency.

It will also take the support of residents to implement new measures and improve energy efficiency standards.

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The RM20 power bills will continue to be paid by government.

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