How BESS eliminates the surged Maximum Demand and RP4 Costs for your factory
The TNB tariff adjustment RP4 (Regulatory Period 4), with the introduction of Time-of-Use (ToU) tariffs and monthly adjustments under the Automatic Fuel Adjustment (AFA) mechanism, many energy intensive factories and manufacturers, especially in key industrial zone like Selangor/Klang Valley, Johor, and Penang are facing increasing up to ~202% surge in Maximum Demand (MD) charges for medium-voltage users. Implementation a Battery Energy Storage System (BESS) is no longer just a “tool”, it’s a financial strategy for Peak Shaving.
Why Malaysian Businesses Are Adopting BESS in 2026
With the launch of Malaysia’s Solar Accelerated Transition Action Programme (Solar ATAP), the rules of energy economics have changed. The most profitable solar photovoltaics (PV) systems are no longer the largest ones, but the smartest ones, and that intelligence comes under the AI-powered Battery Energy Storage System (BESS).
The cost difference between “Imported Power” (what you pay TNB) and “Exported Solar” (the ATAP credit) has increased to approximately RM 0.13 per kWh.
- Buying from Grid (Off-peak): You pay ~2723/kWh (Energy Charge only)
- Buying from Grid (Peak): You pay ~3132/kWh (Energy Charge only)
- Selling to Grid (SMP): You receive ~1881/kWh
- You lose 09 – RM0.13 for every kWh you “sell” to the grid
With BESS, you can store excess daytime energy and discharge it at night to avoid peak period grid purchase (worth RM0.3132/kWh). This significantly accelerates your ROI.
Did You Know? Majority of Malaysia factories (~80%) operates under Medium Voltage (MW) with >1,000,000 kWh electricity usage. Without BESS, this can result in losses of at least RM9,000 per month.
Hacking the “Maximum Demand” Charge
As per TNB’s commercial tariff structure, Maximum Demand (MD) is the highest level of electrical power drawn from the grid during any consecutive 30-minute period within a billing cycle. This charge is a significant component of a commercial electricity bill. The higher a facility’s peak demand, the higher this capacity charge will be, irrespective of its total energy consumption (kWh).
Leveraging Time-of-Use (ToU) Tariffs with BESS
Under Malaysia’s Time-of-Use (ToU) tariff structure, electricity rates are higher during peak hours (2PM to 10PM on weekdays) and lower during off-peak periods, creating a clear opportunity for businesses to optimise energy usage and reduce costs with BESS.
Solarvest’s Battery Energy Storage System (BESS) comes with AI-powered Energy Management System (EMS) to detect the spike and discharges the battery dynamically, saving your facility tens of thousands of Ringgit in Maximum Demand (MD) penalties.
How BESS Works in a Factory (Real Scenario)
- Daytime (Solar Generation): Solar photovoltaics (PV) system generates electricity. The factory consumes what it needs, and excess energy is stored in the battery.
- Peak Hours (2PM – 10PM): Electricity tariffs are highest. Instead of drawing from the grid, the factory uses stored battery energy for peak shaving.
- Night (Off-Peak): Battery can recharge using lower-cost grid electricity during off-peak hours.
In 2026, smart energy management is more important than ever for Malaysia manufacturing factories. This includes sectors like semiconductors, automotive, furniture, steel, paper, plastic, food, pharmaceutical and more. Even a 30-minute surge can affect the entire production line, costing tens of thousands additional product cost. A well-designed BESS protects your profit margin, provide stability in your product cost and competitive edge.
Operational Resilience: Beyond the Bill
The Automatic Fuel Adjustment (AFA) fluctuates monthly based on global coal and gas prices. A Solar PV + Battery Energy Storage System (BESS) allows businesses to better control electricity expenses and minimise the impact of high-surcharge months by providing a more stable long-term energy cost structure for 10–15 years.
For May 2026, Tenaga Nasional Berhad (TNB) bills will feature an additional +1.38 sen/kWh AFA surcharge, compared to April 2026, which recorded a rebate of -0.47 sen/kWh. Majority of Malaysia factories (~80%) operates under Medium Voltage (MW) with >1,000,000 kWh electricity usage, it means an additional cost of >RM18,500.
With Battery Energy Storage System (BESS), your product cost and profit margin will be measurables when you managed to manage your energy smartly. This provides a competitive edge every time there’s fluctuation in fuel/energy cost.
What A BESS looks like
Choosing Your BESS Policies
A Battery Energy Storage System (BESS) is a system that stores electricity and releases it when needed. This electricity can come from the grid and/or solar PV systems. Instead of exporting electricity, BESS allows you to store and use energy strategically for its best value.
For manufacturing factory, this is not just about storage. It’s about control over your product cost and maintaining profit margin when cost fluctuates.
- Solar ATAP users can export energy to the grid and earn credits — but adding BESS gives you greater control to store and use energy when it is most cost-efficient.
- BESS is compulsory under solar self-consumption (SELCO) above 1MWac. If you are unable to export energy to the grid, BESS ensures that excess energy is stored instead of being wasted.
For factory and manufacturer, Solar + BESS delivers the best long-term value.
| Solution | Best For | Limitation | Savings Estimates | ROI |
| Solar Only (Solar ATAP) | Reduce daytime electricity cost | No control over maximum demand/ usage at night | ~30% | ~ 3 Years |
| Solar + BESS (Solar ATAP) | Ability to store excess energy and optimise usage | – | Up to 65% | ~ 3 Years |
| Solar + BESS (Selco) | Maximum savings + flexibility | Unable to export energy to the grid | Up to 75% | ~ 2 Years |
Solarvest’s Solution Ecosystem
Solarvest’s integrated BESS solution is a holistic energy management ecosystem designed for the modern commercial andindustrial market. It built on a synergy of three key pillars: the Battery Energy Storage System (BESS), the AI-driven Energy Simulator (AIES), and the Energy Performance Monitoring System (EPMS). The seamless integration of these three components creates a closed-loop system that not only manages electricity costs but also transforms a company’s energy strategy into a competitive advantage.
Battery Energy Storage System (BESS)
The BESS is the physical component of the solution. It is a smart system that manages electricity usage by shifting consumption from high-cost peak hours to low-cost off-peak hours. Its core benefits include peak demand reduction, maximizing renewable energy self-consumption, and improving power reliability.
AI-driven Energy Simulator (AIES)
The AIES is an intelligent software platform that uses advanced algorithms and machine learning to simulate and analyze a facility’s energy demand profile. The AIES identifies historical and potential MD peaks, then optimizes the BESS sizing and a precise charge/discharge schedule to achieve maximum financial savings. It enables smarter energy planning and investment decisions by providing a clear view of the potential impact of a BESS on the facility’s load profile.
Energy Performance Monitoring System (EPMS)
The EPMS provides real-time, granular visibility into a facility’s energy usage. It is the data source that feeds the AIES, collecting and tracking consumption trends, identifying inefficiencies, and ensuring compliance with energy targets. The EPMS provides the data-driven insights necessary to make proactive adjustments and ensure the system operates at peak efficiency.
Malaysia Case Reference
A large manufacturing plant (Medium Voltage) in Malaysia, facing increased electricity costs under the RP4 tariff, sought a solution to reduce their Maximum Demand (MD) charges. Their facility’s energy consumption data showed significant spikes in demand during the weekdays, particularly between 2PM and 10PM, which are classified as TNB’s peak hours.
Upon implementation, the BESS intelligently charge during off-peak hours and discharge during the daily peaks. The EPMS data showed a clear flattening of the load curve and reduced the facility’s recorded Maximum Demand (MD) by from 20% to over 65%. This quantifiable reduction yielded a significant decrease in the client’s monthly utility bills, providing a proven return on investment (ROI) within 3 years and maximising long-term electricity cost savings.
Making BESS Affordable
BESS is classified as a “Tier 1” Green Asset. You can claim a 100% Investment Tax Allowance on the capital expenditure. This allowance can be set off against 70% of your statutory income. For most manufacturers, this effectively reduces the “real” cost of the BESS by nearly a third.
Commercial and Industrial (C&I) players can now leverage Green Investment Tax Allowance (GITA) Tier 1, which offers a 100% tax allowance on qualifying capital expenditure for BESS. This effectively reduces the upfront cost of your battery by up to 24% through tax savings.
Contact us for a simulation of your 2026 TNB bill with a BESS.