Malaysia has started the implementation of solar energy harvesting in 1998. Located at equatorial region, Malaysia has a large potential for solar energy. This paper examines the current energy consumption and demand in Malaysia. The potential of solar energy harvesting in Malaysia is described together with the suitable photovoltaic construction. It also explains the plans conducted by Malaysia involving solar energy that covers investments and also projects involved such as Malaysia Building Integrated Photovoltaic (MBIPV). Finally, this paper analyses the potential of having a gridconnected PV system in a residential area. The positive and negative findings in terms of cost and suitability of the system are explained.