Build your solar plan — no payment until you approve
Configure solarEvery kilowatt-hour your solar panels generate offsets CO2 and creates a tradeable certificate worth real ringgit. Malaysian solar owners can now earn RM100 to RM5,000+ per year through Bursa Carbon Exchange and I-REC certificates — on top of their electricity bill savings.
Many solar panel owners are confused about the difference between carbon credits and Renewable Energy Certificates (RECs). Both represent the environmental value of clean energy generation — but they work differently, have different buyers, and generate different income streams.
| Feature | Carbon Credits | RECs (I-REC) |
|---|---|---|
| What it represents | 1 tonne of CO2 avoided/removed | 1 MWh of renewable electricity |
| Standard/Platform | Verra VCS, Gold Standard, ACM | I-REC, TIGR, RECerT |
| Who buys | Companies offsetting emissions | Companies claiming RE usage (Scope 2) |
| Verification | Rigorous 3rd-party audit required | Metered generation data sufficient |
| Accessible for homeowners | Difficult — high verification cost | Yes — via aggregator |
| Accessible for businesses | Yes — with methodology | Yes — direct I-REC registration |
| Current Malaysia pricing | RM50-200 per tonne CO2 | RM15-50 per MWh |
| Payment frequency | Annual (post-verification) | Quarterly |
For most Malaysian solar panel owners, I-RECs are the practical choice. Carbon credits (Verra VCS, Gold Standard) require expensive third-party audits costing RM20,000-50,000+ — only feasible for large projects. I-RECs use your existing TNB meter data, making them accessible to any SEDA-registered system.
Launched in December 2022 by Bursa Malaysia, the Bursa Carbon Exchange (BCX) is Southeast Asia's first end-to-end voluntary carbon exchange. It connects renewable energy generators — including solar panel owners — with companies that need to offset their greenhouse gas emissions.
Your solar panels produce electricity, displacing coal/gas generation from the national grid.
Your metered generation data is converted to I-REC certificates — 1 certificate per MWh generated.
Your I-RECs are listed on Bursa Carbon Exchange, where Malaysian and international buyers can purchase them.
Companies with ESG commitments, Scope 2 targets, or net-zero pledges purchase your RECs to prove clean energy use.
RM15-50 per MWh lands in your account quarterly. Large systems can earn thousands of ringgit annually.
Once purchased, RECs are 'retired' in the registry — preventing double-counting and ensuring integrity.
Prices are projected to rise 8-15% annually as Malaysia tightens ESG disclosure requirements and more corporations commit to net-zero targets. Early registration locks in better aggregator terms.
The I-REC Standard is the international framework for issuing Renewable Energy Certificates. In Malaysia, I-RECs are the primary mechanism for solar panel owners to monetize the environmental value of their clean energy generation. Each I-REC represents 1 MWh of verified renewable electricity.
Malaysia Grid Emission Factor: Why It Matters
Malaysia's grid emission factor of 0.78 tCO2/MWh is significantly higher than Singapore (0.41) or the EU average (0.26). This means each MWh of solar generated in Malaysia offsets nearly 3x more CO2 than in Europe — making Malaysian solar RECs particularly valuable to international buyers with global carbon accounting frameworks.
Estimate your annual income from carbon credits and I-RECs based on your solar system size. These calculations use Malaysia's national grid emission factor of 0.78 tCO2/MWh and current I-REC market pricing.
Estimates based on 1,350 kWh/kWp/year (Malaysia average), 0.78 tCO2/MWh grid emission factor. Actual income varies based on system performance, aggregator fees, and market pricing. Not financial advice.
If you have a residential solar system between 6-10kWp, you can participate in carbon credit markets through aggregator services. Here's what you need to know about realistic income expectations, the aggregator process, and which services operate in Malaysia.
| System | Generation/Year | CO2 Offset | REC Income Range |
|---|---|---|---|
| 6kWp (Terrace House) | ~8,100 kWh/year | 6.3 tonnes/year | RM122 – RM405/year |
| 8kWp (Semi-D) | ~10,800 kWh/year | 8.4 tonnes/year | RM162 – RM540/year |
| 10kWp (Bungalow) | ~13,500 kWh/year | 10.5 tonnes/year | RM203 – RM675/year |
Sign up with an approved aggregator who registers your SEDA-registered system into their pooled portfolio.
Your generation data flows automatically from TNB smart meter or your inverter monitoring portal. No manual input needed.
Quarterly payments arrive in your account after the aggregator sells the pooled I-RECs. Typical net payout: RM100-675/year for residential.
For businesses with 50kWp+ solar installations, carbon credits and I-RECs offer both a revenue stream and powerful ESG reporting tools. As Bursa Malaysia strengthens mandatory ESG disclosure requirements for listed companies, solar-generated RECs are becoming a strategic asset.
I-RECs allow you to claim market-based Scope 2 emissions as zero — critical for GHG reporting under GRI, CDP, and Bursa ESG framework.
From 2025, all Bursa-listed companies must disclose climate-related risks. Solar RECs provide quantifiable, auditable evidence of RE commitment.
Malaysia's export manufacturers face EU Carbon Border Adjustment Mechanism from 2026. RECs reduce your embedded carbon footprint, protecting export competitiveness.
Banks offer lower interest rates on green loans and sustainability-linked financing when you can demonstrate RE usage through I-RECs.
MNCs increasingly require Scope 3 supplier emissions data. Showing solar REC certification keeps you in their approved vendor list.
I-RECs from your own solar installation carry more credibility than purchased offsets — regulators and investors prefer operational decarbonization.
Registering your solar system for I-REC issuance requires coordination between your SEDA registration, TNB metering data, and the I-REC Local Issuer. Here is the complete step-by-step process for Malaysian solar owners.
Ensure your solar system is fully registered under SEDA's Solar ATAP programme and connected to the TNB grid. You'll need your SEDA application number and connection approval letter.
Compile: SEDA registration certificate, TNB connection agreement, single-line diagram, inverter specifications, metering point ID (MPAN), and 12 months of generation data from your monitoring system.
Systems under 100kWp: contact an approved aggregator. Systems 100kWp+: apply directly to APX (the I-REC Local Issuer for Malaysia) at www.apx.com. Aggregator handles all paperwork for residential.
Your aggregator (or you directly) submits the Device Registration Form to APX, including all system documentation, GPS coordinates, TNB connection point details, and metering configuration.
APX or their auditor verifies your metering data matches actual generation. For residential systems going through aggregators, this is handled automatically via smart meter data from TNB.
Once registered, I-RECs are issued quarterly based on your metered generation. Your aggregator sells them on the market and transfers payment minus their service fee (typically 15-30% of REC income).
Carbon credit prices have been rising as Malaysia's ESG reporting requirements tighten and more corporations commit to net-zero targets. Here's how your annual I-REC income is projected to grow over 5 years for different system sizes.
5-Year Cumulative Income: RM1,981 for a 10kWp system — entirely on top of your electricity savings. Adjust the system size slider above to recalculate.
The right path to market depends on your system size and whether you can meet the minimum trading thresholds on Bursa Carbon Exchange. Generally, systems below 100kWp benefit from aggregation, while larger commercial and industrial systems can trade directly.
Trexon Energy's certified team handles the entire I-REC registration process — from SEDA documentation to aggregator matching. Whether you're a homeowner with a 6kWp system or a factory with 500kWp, we optimise your solar investment beyond electricity savings.