This paper presents a novel System Dynamics model for solar thermal installed capacity for Malaysian Industries. The objective of this paper is to foresee the influences of technical acceptance and willingness of the Malaysian industries to install the solar thermal system to replace the current system for heating process. Results revealed the Malaysian industries interest level on solar thermal is low. Therefore to increase the interest, Malaysian industries need more booster supports from the government to increase the investment in new technology, which will advantage the company and Malaysia in long-term. Not only industries, the policy makers will also benefit from the outcome, to tailor the framework for solar thermal in developing the solar thermal policy for industries in Malaysia.
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