Commercial solar in Malaysia pays back on the numbers when the output is used on site: a 100 kWp rooftop system (RM 240,000 before SST at RM 2,400/kWp) saves about RM 37,600 a year on an MV General tariff (payback about 6.4 years) or about RM 63,900 a year on a Non-Domestic Low Voltage tariff (payback about 3.8 years). With the GITA 60% tax allowance (commissioned and submitted by 31 December 2026), payback is about 5.5 years (MV) or 3.2 years (LV). This guide gives you the complete financial picture and the assumptions behind it.
Run your own numbers with the commercial solar ROI calculator, or see how a commercial solar installation is scoped and delivered.
Why Commercial Solar ROI Can Beat Residential
Commercial solar systems can pay back faster than residential for three structural reasons:
- Daytime load alignment: Factories, offices, and retail premises run during the hours solar generates, so most of the output can be used on site.
- Higher avoided rate on LV supply: Non-Domestic Low Voltage customers avoid about RM 0.5068/kWh (energy 27.03 + capacity 8.83 + network 14.82 sen), against RM 0.4443/kWh for homes. On MV General the energy charge is 29.83 sen/kWh, so MV payback is longer.
- Lower price per kWp: Our commercial price is RM 2,400/kWp before SST, below residential catalogue prices per kWp at small sizes.
ROI Calculation Methodology
A robust commercial solar ROI calculation has these components:
1. Annual Energy Savings
kWp x 3.5 sun-hours x 360 days x TNB energy rate avoided (RM/kWh), assuming all output is self-consumed.
Example: 100 kWp x 3.5 x 360 = 126,000 kWh a year. At RM 0.2983/kWh (MV General) that is about RM 37,600 a year; at RM 0.5068/kWh (Non-Domestic LV) it is about RM 63,900 a year.
2. Maximum Demand (MD) Charge: Not Counted
The MD charge is set by the single highest 30-minute demand in the month. One cloudy half-hour can set it, so solar alone does not reliably reduce MD, and our solar-only examples count no MD saving. Reducing MD needs a site-specific study, often with storage. Send us 12 months of bills for a site-specific model.
3. Total Annual Savings
For the 100 kWp example: about RM 37,600 (MV General) to RM 63,900 (LV) a year.
4. Payback Period
System cost / annual savings = simple payback. A 100 kWp system at RM 2,400/kWp costs RM 240,000 before SST. RM 240,000 / RM 37,600 = 6.4 years (MV General); RM 240,000 / RM 63,900 = 3.8 years (LV).
Payback Period by Commercial System Size
| System Size | System Cost (before SST) | Annual Savings (MV General) | Annual Savings (LV) | Payback (MV) | Payback (LV) | With GITA (MV / LV) |
|---|---|---|---|---|---|---|
| 50 kWp | RM 120,000 | RM 18,800 | RM 31,900 | 6.4 years | 3.8 years | 5.5 / 3.2 years |
| 100 kWp | RM 240,000 | RM 37,600 | RM 63,900 | 6.4 years | 3.8 years | 5.5 / 3.2 years |
| 200 kWp | RM 480,000 | RM 75,200 | RM 127,700 | 6.4 years | 3.8 years | 5.5 / 3.2 years |
| 500 kWp | RM 1,200,000 | RM 187,900 | RM 319,300 | 6.4 years | 3.8 years | 5.5 / 3.2 years |
Assumptions: 3.5 sun-hours a day, all output self-consumed, no maximum-demand saving, energy rate RM 0.2983/kWh (MV General) or RM 0.5068/kWh (Non-Domestic LV), RM 2,400/kWp before SST, no tariff changes, no degradation. GITA column assumes a 24% corporate tax rate, a 60% allowance on capex fully absorbed, and MGTC verification.
GITA: The 60% Tax Allowance for Commercial Solar
The Green Investment Tax Allowance (GITA Asset) is administered by MGTC (Malaysian Green Technology and Climate Change Corporation) through MyHIJAU and provides a 60% allowance (Tier 2) on qualifying capital expenditure for renewable energy projects, including commercial solar. The allowance can be offset against up to 70% of statutory income in any given year of assessment, with unused allowance carried forward.
How GITA Works in Practice
- A company invests RM 480,000 in a 200 kWp solar system (RM 2,400/kWp, before SST)
- GITA allowance: 60% x RM 480,000 = RM 288,000 tax allowance
- At 24% corporate tax rate: RM 288,000 x 24% = RM 69,120 tax saving
- Effective net cost of system after GITA: RM 480,000 − RM 69,120 = RM 410,880
- Revised payback period: RM 410,880 / RM 75,200 per year (MV General) = about 5.5 years vs 6.4 without GITA; RM 410,880 / RM 127,700 per year (LV) = about 3.2 years vs 3.8 without GITA
GITA Eligibility Requirements
- Company incorporated in Malaysia (Sdn Bhd or Bhd)
- GITA Asset application submitted to MGTC after the system is commissioned
- Solar system must be new (not used or relocated)
- Must use for own consumption (not primarily for sale to grid)
- Current GITA deadline for solar: commissioned and submitted by December 31, 2026 — plan installation early
GITA Asset applications are submitted to MGTC through MyHIJAU after commissioning, and must be submitted by 31 December 2026. Your installer typically provides technical documentation; your company's tax consultant handles the application. Trexon provides the itemised invoice and installation documents for the application.
TNB Tariff Impact: Understanding Your Commercial Bill
Malaysian commercial TNB bills have two main components that solar affects differently:
Energy Charge (sen/kWh)
The per-unit charge for electricity consumed. Solar directly displaces this:
- Medium Voltage General: 29.83 sen/kWh
- Medium Voltage Time of Use: 31.32 sen/kWh peak, 27.23 sen/kWh off-peak
- Non-Domestic Low Voltage General: energy 27.03 + capacity 8.83 + network 14.82 sen = RM 0.5068/kWh avoided
Maximum Demand (MD) Charge
Charged on the highest 30-minute power demand recorded in the billing month, in kW (TNB schedule from 1 July 2025):
- Medium Voltage General: RM 89.27/kW/month
- Medium Voltage Time of Use: RM 97.06/kW/month (peak-period demand)
- High Voltage General: RM 31.21/kW/month
Solar can help reduce the demand TNB records only if it is generating during the half-hour that would otherwise set your peak, which cannot be guaranteed. Our solar-only examples therefore count no MD saving; a site-specific study of your 12-month bills shows what is realistic.
ESG Reporting Benefits
Beyond the direct financial return, commercial solar can support Renewable Energy Certificate (REC) claims; one I-REC represents 1 MWh. REC documentation of your self-consumed solar generation can be used for:
- Scope 2 emission reduction reporting under GHG Protocol accounting standards
- Science Based Targets initiative (SBTi) compliance for companies with net-zero commitments
- Supply chain decarbonisation requirements from MNC customers (particularly in automotive, electronics, and F&B sectors where Scope 3 pressure from global brands is increasing)
- Bursa Malaysia Sustainability Reporting requirements for listed companies
- Bank Negara taxonomy classification benefits for green financing eligibility
For export-oriented manufacturers supplying to EU or US buyers, the ability to demonstrate renewable energy use is increasingly a commercial requirement — not just an ESG checkbox. Solar with REC documentation is one way to support this.
Next Steps for Commercial Solar in Malaysia
The window for GITA applications is open only until December 31, 2026. Start as early as possible: the system must be commissioned and the application submitted by 31 December 2026, and the whole process from booking to TNB commissioning typically takes 6–10 weeks.
Explore our complete commercial solar solutions and factory solar packages, or review our full pricing guide to understand cost structures by system size. Our commercial team provides financial modelling — including TNB tariff impact analysis, GITA documentation, and long-term cash flow projections — as part of the quotation process (free quote).
Frequently Asked Questions
What is the typical solar payback period for commercial properties in Malaysia?
For systems from 50 kWp to 500 kWp in Peninsular Malaysia, if all output is used on site: about 3.8 years simple payback on a Non-Domestic LV tariff and about 6.4 years on MV General, at RM 2,400/kWp before SST and with no maximum-demand saving. With the GITA 60% tax allowance, effective payback is about 3.2 years (LV) or 5.5 years (MV) for companies paying corporate tax at 24%.
What is GITA and when is the deadline for solar applications?
GITA (Green Investment Tax Allowance) is a 60% investment tax allowance on qualifying renewable energy capital expenditure, administered by MGTC through MyHIJAU. For solar, the system must be commissioned and the application submitted by December 31, 2026. The application is made to MGTC after the system is commissioned, so plan installation early enough to file before the deadline.
How does solar reduce Maximum Demand charges on TNB commercial bills?
Maximum Demand (MD) is charged on the highest 30-minute average power demand recorded in the billing month, in kW. Solar generation during business hours reduces the power drawn from the grid, but MD is set by a single half-hour: if that half-hour is cloudy, solar does not reduce it. We therefore count no MD saving in solar-only examples. Send 12 months of bills for a site-specific model.
