The impact of optimized electricity tariff changes towards renewable energy and non‐renewable energy growth in Malaysia

The purpose of this study is to investigate the impact of electricity tariff changes towards renewable energy (RE) and non‐RE growth in Malaysia. Recently, the growth of RE explains the interest of the world to shift the source of generating electricity towards green environmental sustainability. Thus, the utility provider predicts a decreased demand for electricity associated with the rise of RE and verse vice. Input–output model is utilized in this study to elaborate on the social‐economic impact using data obtained from the Department of Statistics, Malaysia. The study focuses on the cost of production towards 124 production sectors for household expenditure from 12 types of consumer classifications. The results found a small impact on both categories, RE and non‐RE, and it is proportionally associated with a positive increase in electricity tariff. Thus, the increase in RE did not have a big impact on the non‐RE customer, leading to no impact on electricity tariff changes.