Malaysian businesses can recover part of their solar investment through the Green Investment Tax Allowance (GITA). This significantly boosts commercial solar ROI.
How GITA Works
For standalone solar PV (GITA Tier 2), a company can claim 60% of the Capital Expenditure (CAPEX) as a tax allowance. This allowance can be used to offset up to 70% of Statutory Income in a year. (Battery storage, EV charging infrastructure and green buildings sit in Tier 1 at 100%.)
Example Calculation
- System Cost: RM 500,000
- Corporate Tax Rate: 24%
- Tax Savings: RM 500,000 * 60% * 24% = RM 72,000
Once fully used, the allowance is worth up to about 14.4% of your system cost. At RM 2,400/kWp, RM 500,000 buys about 208 kWp, which saves about RM 6,500/month in MV General energy charges (29.83 sen/kWh, all output used on site, no MD saving counted). Simple payback is about 6.4 years, or about 5.5 years with GITA. For a full breakdown of how GITA stacks with energy savings, see our commercial solar ROI analysis which includes payback period tables by system size and TNB tariff structure.
Application Process (MGTC)
GITA Asset is administered by the Malaysian Green Technology and Climate Change Corporation (MGTC) through MyHIJAU. The application is made to MGTC after the system is commissioned, and it must be submitted by 31 December 2026, so the system must be commissioned and the application submitted by then. Qualifying capex must be incurred between 1 January 2024 and 31 December 2026. Subject to MGTC verification. Trexon can help with GITA paperwork and the MGTC application. Manufacturing businesses can benefit in particular — our industrial solar guide covers how factories and warehouses can combine GITA with operational savings to shorten their payback.
Ready to explore commercial solar for your business? Visit our commercial solar solutions page for office and retail projects, or our factory solar solutions page for industrial and manufacturing installations.