RENEWABLE energy solutions outfit Northern Solar Holdings Bhd has an optimistic feel on 2026, underpinned by a strengthening financial position, steady execution in 2025 and an accelerating national renewable energy (RE) build-out.
Looking ahead, the group expects 2026 to mark the start of a multi-year expansion phase for the solar industry, driven by large-scale solar (LSS) roll-outs, enhanced self-consumption frameworks and the increasing integration of battery energy storage systems (BESS).
Industry estimates indicate that the latest LSS PETRA 5+ allocation alone could generate up to RM5.9 bil in EPCC (engineering, procurement, construction and commissioning) opportunities with further capacity expected under upcoming LSS6 rounds.
Northern Solar enters this phase having built solid momentum in 2025. The group successfully listed on the ACE Market of Bursa Malaysia in February 2025 backed by adequate capital to strengthen its balance sheet and improved access to financing facilities.
This has expanded the group’s capacity to undertake larger and more technically complex projects while maintaining prudent leverage.
Operationally, Northern Solar delivered consistent financial performance throughout 2025 and into 2026.
The group recorded revenue of RM56.2 mil which represents 40% of its year-on-year growth for the first half of its FY3/2026 ended Sept 30, 2025 while its net profit rose to RM8.1 mil.
Expansion spree
Gross profit margins remained healthy, supported by disciplined cost management and favourable procurement conditions during a period of low solar panel prices.
During 2025, the group continued to execute projects across its core commercial, industrial and residential segments while also expanding into adjacent growth areas.
Notably, Northern Solar delivered a ground-mounted self-consumption solar project integrated with BESS, demonstrating its capability in integrated solar-plus-storage solutions.
This positions the group ahead of regulatory changes that will require BESS integration for larger non-domestic systems from January 2026 onwards.
At the same time, Northern Solar also laid the foundation for participation in larger-scale and utility solar projects by aligning its strategy with Malaysia’s National Energy Transition Roadmap (NETR) which targets a 70% renewable energy mix by 2050.
Analysts project solar to account for a rising share of Malaysia’s installed capacity over the coming decades, implying sustained demand for both solar EPCC services and supporting infrastructure such as energy storage.
“We view 2026 as a transition year from preparation to execution,” envisages Northern Solar’s managing director Lew Shoong Kai.
“The industry is moving into a phase where scale, balance sheet strength and execution discipline will matter more than headline capacity announcements.”
Towards this end, the group’s priority is not to chase volume indiscriminately but to participate selectively in projects where we can preserve margins and deliver reliably.
“With our strengthened financial position and integrated solar-plus-storage capability, we believe Northern Solar is well-positioned to navigate the next stage of the sector’s expansion,” added Lew.
At 3.38pm, Northern Solar was unchanged at 63.5 sen with 127,500 shares traded, thus valuing the company at RM251 mil. – Dec 30, 2025
