The rapid rise in global oil prices, the scarcity of petroleum sources, and environmental concerns have all created severe issues. As a result of the country’s rapid expansion and financial affluence, Malaysia’s energy consumption has skyrocketed. Biodiesel and solar power are currently two of the most popular alternatives to fossil fuels in Malaysia. These two types of renewable energy sources appear to be viable options because of their abundant availability together with environmental and performance competence to highly polluting and fast depleting fossil fuels. The purpose of adopting renewable technology is to expand the nation’s accessibility to a reliable and secure power supply. The current review article investigates nonconventional energy sources added with nanosized metal particles called as nanomaterials including biodiesel and solar, as well as readily available renewable energy options. Concerning the nation’s energy policy agenda, the sources of energy demand are also investigated. The article evaluates Malaysia’s existing position in renewable energy industries, such as biodiesel and solar, as well as the impact of nanomaterials. This review article discusses biodiesel production, applications, and government policies in Malaysia, as well as biodiesel consumption and recent developments in the bioenergy sector, such as biodiesel property modifications utilizing nanoparticle additions. In addition, the current review study examines the scope of solar energy, different photovoltaic concentrators, types of solar energy harvesting systems, photovoltaic electricity potential in Malaysia, and the experimental setup of solar flat plate collectors (FPC) with nanotechnology.