What Businesses Must Know to Maximise Solar Savings
For over a decade, solar in Malaysia was about the Net Energy Metering (NEM) scheme. As of January 1, 2026, the policies have shifted to Solar Accelerated Transition Action Programme (Solar ATAP).
“ATAP” means “roof” in Malay. Solar ATAP is a new solar rooftop scheme managed by Sustainable Energy Development Authority (SEDA) and the Energy Commission (ST). It moves us away from fixed quotas towards a more dynamic, market-responsive energy ecosystem.
For businesses looking to hedge against rising electricity tariffs, this guide explains how the new rules affect your ROI.
Table of Contents
- What is Solar ATAP?
- From NEM to ATAP: What Has Changed?
- Understanding the New Electricity Tariff Structure
- How Does Solar ATAP Work for Commercial & Industrial (C&I)?
- Key Considerations Before Installing Solar Under ATAP
- Why Acting Early Matters
- Start Your Solar Journey with Confidence
What is Solar ATAP?
Solar ATAP is an upgrade to the NEM 3.0 program, designed to be “cost-neutral” to reward energy efficiency management. Unlike the previous NEM scheme, Solar ATAP prioritises direct consumption method, meaning you use the energy you generate in real-time. Surplus energy can still be exported to the grid, but this now occurs through a transparent, structured pathway.
From NEM to ATAP: What Has Changed?
Under NEM, solar users benefited from a 1-to-1 offset mechanism, where exported energy could directly offset electricity bills. With Solar ATAP, the focus shifts to benefits a consume-first approach. This means – the more solar energy you use directly, the more you save.
| Type of Policies | NEM | Solar ATAP |
| Core Savings | Export-based savings | Consume-driven savings |
| Export Value | 1:1 offset | Based on energy tariff structure (explained at below) |
| Mechanism | Generate & export | Generate, consume first, then only export the extra |
| Market Quota | Quota-based | First come first serve |
Understanding the New Electricity Tariff Structure
To fully understand how the mechanism works, you need to understand the new energy tariff and to confirm your electricity consumption habits.
| New Energy Tariff Component | What It Covers? | Can Solar ATAP Offset This? |
| Energy Charge
|
The actual cost of electricity (RM/kWh) you consume | YES. This is the primary savings for solar offsets, when you directly consume the solar generated electricity |
| Capacity Charge
|
Infrastructure costs for power plants and grid usage | PARTIALLY. Reduced only when you minimise grid dependency |
| Network Charge
|
Infrastructure costs such as transmission lines and distribution systems to your doorstep | NO. This remains a fixed cost when importing electricity |
| Retail Charge
|
A flat service fee for billing and customer service. (RM10 for homes; RM20-RM250 for businesses) | NO. (Though waived for homes consuming less than 600 kWh) |
Reference: TNB New Energy Tariff Structure.
How Does Solar ATAP Work for Commercial & Industrial (C&I)?
Solar panels generate electricity during the day. The more of this energy you use instantly, the greater your savings. For example: running air-conditioning, machinery, or appliances during daytime or aligning business operations during solar generation hours. This directly reduces your Energy Charge and Capacity Charge.
Export is “Secondary” under Solar ATAP. If your system produces more energy than you consume, you can export surplus electricity to the grid and credits will be provided based on the applicable pricing mechanism. Now it is important to remember that export is not the main source of savings. WHY? Because exported energy is worth less than energy you consume yourself.
Under Solar ATAP, direct consumed solar offsets retail electricity price at a higher value; while exported solar energy is compensated at a lower rate (compared to NEM). To put it into real numbers, direct consumed energy ranges ~ RM0.2723 – RM0.3132 per kWh, exported energy is compensated at ~RM0.18 per kWh (based on system marginal price, SMP in March 2026).
| Solar ATAP | Energy Charge | Capacity Charge | Network Charge | Retail Charge | Energy Efficiency Incentive |
| Direct consumption | X | X | / | / (for 600 kWp+) | Available for household total consumption 1,000 kWh and below per month & Non-Domestic Low Voltage customers consumed 200 kWh and below per month |
| Energy Export | X | / | / | / | |
| Without solar | / | / | / | / | |
| Charge to BESS during daytime and use it at night | X | X | / | / |
Refer to Energy Efficiency Incentive
Simple Scenario Comparison
Exporting excess solar energy typically delivers up to 43% lower value compared to direct self-consumption, depending on tariff category and usage profile. For example, consuming 1,000,000 kWh of solar energy could generate savings of approximately RM272,000 – RM313,000, whereas exporting the same amount may only yield around RM180,000 in credits.
Scenario A: You USE your solar energy
Savings Comparison:
Total Savings: RM272,300 – RM313,200 |
Scenario B: You EXPORT your solar energy
Savings Breakdown:
Total Savings: RM226,150 – RM246,600 |
Integrating Battery Energy Storage (BESS)
Solar under ATAP is no longer about generating the most energy, it is about using the most of what you generate. To maximise solar usage beyond daytime hours, many users are exploring Battery Energy Storage Systems (BESS). Benefits include:
- Storing excess solar energy for night use
- Reducing reliance on grid electricity
- Improving long-term cost efficiency
When BESS comes into play, instead of exporting the excess 500,000 kWh generated, you can store it and use at night to avoid reliance on TNB grid with savings of RM0.
Key Considerations Before Installing Solar Under ATAP
To fully optimise your investment, consider:
1. Your Consumption Profile
- When do you use electricity the most?
- Does it align with solar generation hours?
2. System Sizing Strategy
- Avoid oversizing purely for export
- Focus on matching generation with consumption
3. Future Energy Needs
- Expansion plans
- Electrification (EV charging, automation, etc.)
4. Potential Integration with BESS
- Evaluate long-term savings vs upfront cost
Why Acting Early Matters
Solar ATAP operates on a first-come, first-served basis, delaying your decision could mean:
- Missing available quota
- Facing higher system costs due to market changes
- Losing early-mover advantage in energy savings
Start Your Solar Journey with Confidence
Understanding Solar ATAP is the first step. Designing the right system is what unlocks real savings.
At Solarvest, we help homeowners and businesses:
- Analyse their energy consumption
- Design optimised solar solutions
- Maximise long-term ROI under the latest regulations
Get a free consultation today and discover how much you can save with Solar ATAP.