Features Nation’s First Affordable Rent-To-Own Household Solar Contributes to APAC subscription business worth USD478.2 billion by 2025
Kuala Lumpur – Leading clean energy provider Plus Xnergy Holding Sdn Bhd (“Plus Xnergy”) has forged an exclusive partnership with SUBPLACE, Asia’s first subscription and rental platform. The two brands now offer residential solar solutions, through rent-to-own packages, the first of its kind in Malaysia.
The solar rent-to-own packages start from RM388 with zero upfront cost and project savings of up to 90% of a household’s monthly electricity bill. Instead of monthly grid electricity payments, users can now divert this expense to offset the solar setup’s cost.
Depending on monthly electricity usage, this can result in minimal to zero increase in monthly expenses. After rental payments over a five-year plan, the solar setup will be owned by the residents who will gain markedly higher savings.
The scheme is also closely regulated by Bank Negara Malaysia and credit agency CTOS, who ensure creditworthiness of hopeful adopters as well as due legal process and regulations adherence.
“We are extremely pleased to partner with SUBPLACE in offering the first clean energy rental plan solution in Malaysia. Consumers now have the opportunity to own their own solar solution affordably. Once considered a premium product, it is now made accessible, whilst removing all burdens of maintenance from the user within the rental plan period,” said Ko Chuan Zhen, Group CEO & Co Founder of Plus Xnergy.
“With this strategic partnership, we aim to outfit 2,000 houses with solar power within the next year, and up to 5,000 in the second year. We recognize an untapped potential in Malaysia’s solar market, given its 3.2 million residential properties. Additionally, our efforts are aligned with the government’s NEM 3.0 Rakyat program, introduced early this year to encourage growth and adoption of solar solutions for consumers. We’re excited to be a part of our nation’s push towards household solar adoption and eager to see how it unfolds in the near future,” added Ko.
“I foresee rental models to not merely be a trend but a permanent shift in the way consumers shop. In fact, Asia Pacific is leading the pack in terms of subscription e-commerce which is expected to reach a market size of USD$478.2 billion by 2025. Which is where this significant partnership with Plus Xnergy is remarkable – for the first time on a subscription and rental platform, a solar solution is featured,” says Mak Wai Hoong (WH Mak), CEO of SUBPLACE. Across the world, subscription models are seeing increased consumer adoption. According to a recent McKinsey report from May 2021, there was 300% collective growth in subscription businesses over a span of six years. This insight drives Plus Xnergy’s latest move towards promoting this model, given its popularity and evident rise.
“Many believe that environmental protection and economic growth are competing interests, but the truth is, the two can be bridged with green technology. We hope to make sustainable cities a reality through this partnership with Plus Xnergy,” adds Mak.
Plus Xnergy’s rent-to-own solar packages start at RM388 per month over a 5-year period. Besides addressing shifting consumer needs and trends, the initiative also aims to create over 500 business opportunities for Malaysians by August 2022. This is achieved through local micro-entrepreneurs who will carry out consultations and drive adoption. Through its education unit, Plus Uni-Verse, the firm also provides free technical training and business knowledge for potential talents with a goal to absorb them into the solar industry.
Left: Ko Chuan Zhen, Group CEO of Plus Xnergy Holding. Right: Mak Wai Hoong (WH Mak), CEO of SUBPLACE
The rent-to-own program also extends a further five year warranty on a system’s inverter to public servants and frontline workers to honour their contributions throughout the pandemic. An inverter is a major part of the solar PV system which converts solar energy to usable electricity.
In total, a 10-year inverter warranty is granted exclusively for this segment. Worth RM6,000, it entails a one-to-one replacement, at no cost to customers. “We wish to give back to government servants and front liners as they have sacrificed much for our nation throughout the pandemic; said Ko.