The 2026 Guide to Commercial Solar

For Malaysian businesses—particularly manufacturing facilities, warehouses, and large sites suited to commercial solar installation—electricity is one of the highest operating expenses. With TNB's Maximum Demand (MD) charges sitting at a hefty RM 89.27/kW (Medium Voltage General tariff), optimizing energy costs is no longer just an ESG initiative; it is a bottom-line necessity.

The good news? In 2026, transitioning your facility to solar power does not require depleting your cash reserves.

1. Hire Purchase (Mitsubishi HC Capital Malaysia)

Hire purchase lets your business spread the cost of a commercial solar system over fixed monthly instalments instead of paying the full price upfront. Trexon arranges commercial hire-purchase agreements through Mitsubishi HC Capital Malaysia.

How the Hire Purchase Works:

• The Financier Funds the System: Mitsubishi HC Capital Malaysia pays for the panels, inverters and installation, subject to its credit approval.
• You Pay Monthly: You repay in fixed monthly instalments over a 2 to 5 year term. The financier quotes the rate for your company.
• You Own the System: At the end of the hire purchase, the system belongs to your company.
• Same Warranties: 30-year panel performance, 12-year panel product, 10-year inverter and 5-year workmanship warranties apply, as with an outright purchase.

Best For: Companies with high daytime energy use that want to own their system but prefer to preserve cash.

2. Outright Purchase & The GITA Tax Allowance

If your company has cash reserves or access to a green bank loan, purchasing the solar system outright often gives a higher long-term return than hire purchase, depending on your load and tariff. At our commercial price of about RM2,400/kWp (before SST), a medium-voltage site that uses all of its solar output on site typically pays back in about 6.4 years, or about 5.5 years with GITA.

That shorter payback comes from the Malaysian Government's Green Investment Tax Allowance (GITA).

What is GITA?

GITA Asset, administered by MGTC, allows companies to claim an allowance of 60% of qualifying capital expenditure on solar PV. The allowance can be set off against up to 70% of statutory income in each year of assessment, and any unused allowance is carried forward until fully absorbed. Subject to MGTC verification.

Combine the RM 345,600 tax value with the monthly reduction in your TNB bill and an outright purchase often gives a higher long-term return than hire purchase, depending on your load and tariff. Confirm your allowance claims with your tax agent.

3. Green Bank Loans

If you want to own the system but prefer not to pay from cash reserves, many Malaysian banks offer green financing for business solar. Ask your bank for its current terms.

• GTFS 5.0 Guarantee: Under GTFS 5.0 (MGTC), the government guarantees 60–80% of the green-technology portion of a bank loan for companies. There is no interest rebate. The scheme is open until 31 Dec 2026 or until the RM1 billion allocation is used.
• Match Repayments to Savings: Ask your bank to set the tenure so the monthly repayment is close to your expected TNB savings. Savings depend on your daytime load and tariff.

Compare all Malaysian bank rates, eligibility requirements, and application steps in our solar bank loan comparison guide.