Rent-own offer for solar panels to power Xnergy’s revenue growth

KUALA LUMPUR, 26 Aug 2021:

Taking note of Covid-19 challenges, including on the bottomlines of potential customers, Plus Xnergy Holding Sdn Bhd has come up with a rent-own model for its solar panel supply and installation business.

This offer is extended to both individual and corporate clients so that no cash upfront payment is needed, said group chief executive officer Ko Chuan Zhen during a virtual launch today.

And as an extra incentive, Plus Xnergy is offering free consultation on energy usage at premises – even for those who don’t take up the rent-own packages – in an effort to help participants reduce electricity bills.

These three packages formed the main thrust of Plus Xnergy’s rebranding exercise, following a restructuring of business units previously run as Plus Solar Systems Sdn Bhd, explained Ko.

“We have always been a strong contender in the B2B (business-to-business) market, but it is an apt time to enter the B2C (consumer) market as we see strong demand from this segment. There is much room for adoption potential as there are over 3.2 million residential properties in Malaysia.”

For this segment, Plus Xnergy is offering 5-year rent-own packages with monthly costs starting from RM388. These packages include annual free maintenance plus handling of necessary processes and installations to plug into the national power grid.

“We see this pricing as a good tipping point for landed homes where the monthly electricity bills are about RM600. Our fees plus up to 90% savings in electricity bills make it a viable alternative for the five-year period, and huge savings over the next two decades as we offer a 25-year warranty on solar panels.”

In its first year, Plus Xnergy projects to outfit 2,000 houses with solar power, and up to 5,000 by its second year.This package is being offered via a collaboration with Subspace, which is providing the funding platform.

The firm is also aiming to create over 500 micro-entrepreneurs in the process, providing free training so they can subsequently install and maintain these solar panels at participating homes.

For business clients, Plus Xnergy is offering a longer rent-own model with a power purchase agreement, said Ko. “One of the greatest challenges for businesses is high overheads and operating expenses such as rent and electricity. We offer businesses a solution that lowers operating expenses but at zero upfront cost.

“15–20-year lease-to-own tenure. Once the tenure matures, adopting businesses gain full ownership of the solar setup.”

Leveraging on this business package, Plus Xnergy has forged an alliance with Yinson Renewables Pte Ltd to jointly invest and develop an asset portfolio of up to 250MW of solar commercial and industrial projects within and beyond Malaysia within the next three years.

With these ventures, Plus Xnergy banking on market growth in projecting a revenue growth of RM500 million in three years, already eyeing plans for expansion into Vietnam and one other Asian country, still weighing between the Philippines and Taiwan, said Ko.

He said the firm also plans to secure up to 100MW in large scale solar projects as well as to diversify into energy storage systems, electric vehicle chargers and floating solar setups.

In the meantime, to further attract customers, the firm is offering free energy profile analysis to help business owners understand their energy usage and leakages whilst gaining insights into ways of optimising energy consumption and reducing electricity overheads.

Having deployed and gathered data at a multitude of establishments all over the country, Ko said this proprietary artificial intelligence system can “save as much as an additional 20% on electricity bills”.