The Complete Guide to Solar in Malaysia (2026): ATAP, Rebates, and the New TNB Tariff
Last updated: July 2026
If you last researched solar panels in Malaysia a year or two ago, almost everything you read is now out of date. Since mid-2025, the entire landscape has changed: the old Net Energy Metering (NEM) scheme has ended, a brand-new programme called Solar ATAP has taken its place, TNB has restructured how every electricity bill is calculated, and the government has just launched a fresh cash rebate — SuRIA Home — worth up to RM3,000 for homeowners.
If you are researching the financial viability of Solar in Malaysia 2026, almost everything you read a year or two ago is now completely out of date. Since mid-2025, the entire renewable energy landscape has shifted: the old Net Energy Metering (NEM) scheme has officially closed, a brand-new programme called Solar ATAP has taken its place, TNB has restructured how every electricity bill is calculated, and the government has just launched a fresh cash rebate “SuRIA Home” worth up to RM3,000 for homeowners.
This guide explains exactly how solar works in Peninsular Malaysia right now: the current rules, the current incentives, the current prices, and whether the numbers still make sense for your home or business. *(Spoiler: they do — but the strategy has changed.)
Quick Summary: Solar in Malaysia 2026
Solar ATAP is the current rooftop solar programme, live since 1 January 2026. There is no national quota — applications are open year-round.
Homeowners can claim the SuRIA Home rebate: RM600 per kWac, capped at RM3,000, for systems commissioned by 31 December 2026 (or until the 250 MW national quota is taken up).
Under the TNB tariff in force since July 2025, every unit of solar you use yourself is worth roughly 44–54 sen/kWh, while exported units earn less. Because of this, systems are now designed heavily around self-consumption.
Businesses can still claim the GITA investment tax allowance (applications close 31 December 2026) plus green financing under GTFS 5.0.
A typical fully installed home system costs RM3,000–RM4,000 per kWp, with a payback period of roughly 4.5–6 years for homes and 3–5 years for businesses.
Why Everything Changed: The New TNB Tariff
To understand why solar strategy changed in 2026, you first need to understand your electricity bill. On 1 July 2025, the Energy Commission rolled out a completely restructured tariff for Peninsular Malaysia under Regulatory Period 4 (RP4), which runs until the end of 2027. The old tiered blocks are gone. A domestic bill is now built from several components:
Energy charge: 27.03 sen/kWh if you use 1,500 kWh or less per month, or 37.03 sen/kWh above that
Capacity charge: 4.55 sen/kWh
Network charge: 12.85 sen/kWh
Retail charge: RM10/month (waived if you use 600 kWh or less)
AFA (Automatic Fuel Adjustment): a monthly surcharge or rebate that tracks global fuel prices, capped at ±3 sen/kWh
Add those together and a typical household pays around 44.43 sen for every kWh drawn from the grid (54.43 sen for heavy users) — before AFA. Businesses on commercial and industrial tariffs face their own capacity and network charges, plus the same monthly AFA swings.
The Key Insight: Every kWh your solar panels supply directly to your home avoids the full stacked rate — energy, capacity, network, and AFA combined. That single fact drives every smart solar decision in 2026.
What Is Solar ATAP? Malaysia’s Current Rooftop Solar Programme
The Solar Accelerated Transition Action Programme (Solar ATAP) is the official successor to NEM, which closed on 30 June 2025. Introduced by the Ministry of Energy Transition and Water Transformation (PETRA) and administered by SEDA Malaysia and the Energy Commission, Solar ATAP has been open for applications since 1 January 2026 across Peninsular Malaysia.
How Solar ATAP Works
The programme runs on a simple “self-consumption first” logic:
Generate: Your rooftop panels produce electricity during daylight hours.
Use it first: Your home or business consumes that energy in real time, replacing grid electricity at the full retail rate.
Export the surplus: Anything you don’t use flows to the TNB grid and earns ATAP Credit on your bill.
Draw from the grid: At night or on cloudy days, TNB supplies you as normal.
At the end of each billing month, your ATAP Credit is offset against your bill.
Solar ATAP Export Rates in 2026
This is where ATAP differs most from the old scheme:
Domestic users are credited at the energy charge only — 27.03 sen/kWh (or 37.03 sen/kWh if monthly usage exceeds 1,500 kWh). The capacity and network portions are not offset.
Non-domestic users (businesses) are credited at the average System Marginal Price (SMP) — the wholesale market rate, which has hovered around 18–20 sen/kWh in recent months.
Two more rules matter enormously for system design:
No rollover: Unused ATAP Credit is forfeited at the end of each billing period. Under NEM, credits could roll over for 12 months; under ATAP, they cannot.
MAQ (Maximum Allowable Quantity): There’s a cap on how much exported energy can be credited each billing period, and credits offset your bill — they are never paid out as cash.
Solar ATAP Capacity Limits
ATAP actually raised the ceiling on how much solar you can install:
| Customer Type | Maximum System Size under Solar ATAP |
| Domestic, single-phase | 5 kW |
| Domestic, three-phase | 15 kW (up from 12.5 kW previously) |
| Commercial & Industrial | 100% of maximum demand, capped at 1 MW (up from 85%) |
Contract Length and Application
The ATAP contract runs for 10 years from commissioning. After that, the system continues to power your premises for self-consumption, but export offsets end.
You cannot apply directly. All applications go through a SEDA-Registered Photovoltaic Service Provider (RPVSP), who submits via the eATAP portal and manages the TNB process end-to-end. Once approved, the system must be commissioned within 18 months. (Note: If you prefer not to export at all, the SELCO — Self-Consumption — pathway still exists for pure own-use systems with no grid export and no contract term.)
Solar ATAP vs the Old NEM: What Actually Changed
Thousands of Malaysians still search for “NEM”, so here’s the honest comparison — and why the change matters for how your system should be designed:
| Feature | Old NEM (ended 30 June 2025) | Solar ATAP (current) |
| Availability | Fixed quotas, often fully taken | No quota, open year-round |
| Export value (home) | One-to-one offset (~45 sen/kWh effective) | Energy charge only (27.03–37.03 sen/kWh) |
| Export value (business) | System marginal price | Average SMP (unchanged in principle) |
| Credit rollover | Up to 12 months | None — monthly use-it-or-lose-it |
| Max size (3-phase home) | 12.5 kW | 15 kW |
| Max size (business) | 85% of demand | 100% of maximum demand (up to 1 MW) |
| Contract | 10 years | 10 years |
The takeaway: Exporting is now a bonus, not the business case. The money is in matching your system size to your daytime consumption — or adding a battery so your surplus works the night shift instead of being sold cheap.
SuRIA Home: The RM3,000 Solar Rebate for Malaysian Homeowners
On 22 May 2026, PETRA launched the Sustainable Rebate and Incentive Assistance (SuRIA) Home initiative — a RM150 million cash rebate fund designed to accelerate residential rooftop solar and cushion households against rising energy costs.
How Much You Get
You receive RM600 for every 1 kWac installed, capped at RM3,000. You hit this maximum cap with a 5 kWac system, which is a very common size for Malaysian terrace and semi-D homes.
| System Size | SuRIA Home Rebate |
| 2 kWac | RM1,200 |
| 3 kWac | RM1,800 |
| 4 kWac | RM2,400 |
| 5 kWac and above | RM3,000 (maximum) |
Who Qualifies
Malaysian citizens who are individual domestic low-voltage TNB customers (companies are excluded — businesses have GITA instead).
Your solar system must be installed and commissioned under Solar ATAP.
One rebate claim per person, tied to the first commissioned system.
Systems already commissioned under ATAP earlier in 2026 remain eligible.
Deadlines and How It’s Paid
The rebate rollout began on 1 June 2026 and runs until 31 December 2026 — or until the national 250 MW quota is exhausted, whichever comes first. This is strictly on a first-come, first-served basis.
Payment is refreshingly simple: TNB contacts eligible customers in phases via their registered email to collect bank details, then deposits the rebate directly. On a typical 5 kWac system quoted around RM19,000–RM20,000, the rebate effectively knocks the net cost down to roughly RM16,000–RM17,000 — trimming half a year to a full year off your payback period.
Solar Incentives for Malaysian Businesses in 2026
For companies exploring Solar in Malaysia 2026, the business case rests on three pillars — and two of them carry a hard deadline.
1. GITA — Green Investment Tax Allowance (apply by 31 December 2026)
GITA grants an Investment Tax Allowance on qualifying solar capital expenditure — 60% for standard solar PV assets, rising to 100% for Tier-1 qualifying assets such as integrated battery energy storage. Stacked with normal capital allowances, GITA can return roughly 38%–48% of a project’s cost through tax savings. The current window closes at the end of 2026, and since a commercial project typically takes 3–6 months from quote to commissioning, businesses must act immediately.
2. GTFS 5.0 — Green Technology Financing Scheme
GTFS 5.0 has been extended to 31 December 2026, offering government guarantees of up to 60%–80% on green loans through participating banks, which translates into easier approvals and lower effective rates for solar and battery projects.
3. CRESS — Corporate Renewable Energy Supply Scheme
Larger energy users (data centres, manufacturers, MNCs with RE100 commitments) can procure green electricity directly from developers through the grid under CRESS, via long-term corporate power purchase agreements.
A Note for the Boardroom: Malaysia’s carbon tax begins in 2026, initially targeting the energy and iron & steel sectors. On-site solar directly reduces the Scope 2 emissions that this framework will increasingly price.
How Much Does Solar Cost in Malaysia in 2026?
The market benchmark for a quality, fully installed residential system — Tier-1 panels, brand-name inverter, mounting, wiring, SEDA/ATAP application, and commissioning — is RM3,000–RM4,000 per kWp.
5–6 kWp (typical terrace house, RM250–RM400 monthly bill): roughly RM18,000–RM22,000
8–10 kWp (semi-D or bungalow, RM500–RM900 bill): roughly RM24,000–RM34,000
Commercial systems scale cheaper, around RM2,500–RM3,500 per kWp
Battery storage (5–10 kWh) adds roughly RM15,000–RM30,000
A well-sized 5 kWp system typically cuts around RM300 a month off a TNB bill, putting residential payback at 4.5–6 years (closer to 4 with the SuRIA rebate applied). After payback, the panels keep producing for another 18–20 years under warranty.
Do You Need a Battery in 2026?
Under the old NEM, batteries rarely paid for themselves — the grid was your battery. Solar ATAP changes that calculus. Export credits are now worth less than self-consumed energy, unused credits vanish monthly, and the optional Time-of-Use tariff rewards households that shift grid usage off-peak.
A battery lets you store your midday surplus and use it at night at full retail value instead of exporting it at the lower credit rate. For households with heavy evening consumption, a hybrid solar-plus-storage design increasingly makes financial sense.
How to Go Solar in Malaysia in 2026: Step by Step
Gather 3–6 months of TNB bills so your daytime consumption can be accurately profiled.
Appoint a SEDA-Registered PV Service Provider (RPVSP) — verify registration on SEDA’s public directory.
Get a site assessment and right-sized design. Under ATAP, oversizing wastes money; the goal is maximum self-consumption.
Your installer submits the Solar ATAP application via SEDA’s eATAP portal and handles the TNB technical process.
Installation and commissioning — typically 1–2 days on the roof for a home, after which TNB completes meter works and your ATAP contract begins.
Claim your SuRIA Home rebate — once commissioned, watch for TNB’s email to submit your bank details, and the rebate is deposited directly.
Frequently Asked Questions
Is NEM still available in Malaysia?
No. NEM closed on 30 June 2025. The current programme is Solar ATAP, open since 1 January 2026 with no quota. Any installer still selling “NEM” is working from outdated information.
How much is the SuRIA Home solar rebate?
RM600 per kWac installed, up to a maximum of RM3,000 (reached at 5 kWac). It applies to Solar ATAP systems commissioned by 31 December 2026, subject to a 250 MW first-come, first-served national quota.
What rate does TNB pay for exported solar in 2026?
Homes earn bill credits at the energy charge — 27.03 sen/kWh (or 37.03 sen/kWh if monthly usage exceeds 1,500 kWh). Businesses are credited at the average System Marginal Price. Credits offset your bill within the same month and do not roll over.
Is solar still worth it under Solar ATAP?
Yes — arguably more than ever, because grid electricity now costs around 44–54 sen/kWh all-in for many users. The difference is strategy: returns now come primarily from using your own solar power rather than exporting it.
How long is the Solar ATAP contract?
Ten years from commissioning. After that, the system continues to serve your own consumption, but grid-export offsets end.
The Bottom Line
The bottom line for Solar in Malaysia 2026 is that it’s a genuine sweet spot: an open, quota-free programme in Solar ATAP, live cash on the table through SuRIA Home, tax incentives for businesses that expire at year-end, and grid tariffs that make every self-generated kilowatt-hour more valuable than before. The winners this year won’t be the people who install the biggest system — they’ll be the ones who install the right-sized system, designed around how they actually use energy.
Ready to see your real numbers? Send the Amiya team your latest TNB bill for a free, no-obligation system design and savings projection under Solar ATAP — and let us secure your RM3,000 SuRIA Home rebate before the quota runs out. Get your free assessment →
Disclaimer: Programme terms, tariffs and incentive quotas are set by the authorities and may change. Figures above reflect official announcements as of July 2026; confirm current details with SEDA Malaysia, TNB and MIDA before making purchase decisions. Sabah and Sarawak operate their own utilities and solar frameworks with separate rules and incentives.
