A green loan in Malaysia is financing meant for projects with an environmental benefit, and solar energy systems are a common use. Bank terms change and differ by product, so this guide sets out the routes we can verify, explains what to check with each bank, and shows how to compare the real cost against your expected savings.
What Is a Green Loan in Malaysia?
A green loan is a lending product where the proceeds are used for a project with a clear environmental benefit. Many banks label some of their personal, home or business financing as green when it funds solar. The label does not guarantee a lower rate, so compare the actual rate and terms, not the name.
Green Technology Financing Scheme (GTFS 5.0)
GTFS 5.0, run by MGTC, is a government guarantee scheme for companies. It guarantees 60–80% of the green-technology portion of a bank loan, which can help a company that would otherwise struggle to get approved.
GTFS 5.0 Key Points
- Who it is for: Companies only. It is not for homeowners.
- Government guarantee: 60–80% on the green-technology portion of the bank loan
- No interest rebate: GTFS 5.0 does not reduce the interest rate. The bank sets the rate.
- Availability: Open until 31 December 2026 or until the RM 1 billion allocation is used
- How to use it: Ask your bank whether it participates and whether your project qualifies
Solar Financing Routes: What We Can Confirm
We do not publish rates for banks whose current solar product terms we cannot verify. Check the bank's current rate and terms on its own product page.
| Route | What we can confirm | Who it suits |
|---|---|---|
| Maybank Solar PV Financing | Up to RM 100,000, up to 10 years, floating rate (Maybank's own illustration uses SBR + 2.70%) | Homeowners who want a longer repayment |
| CIMB | CIMB's own page describes solar financing as an add-on to a home-purchase loan (5% of property value or RM 50,000); check current terms with CIMB | New home buyers |
| Other banks (RHB, Public Bank, Bank Islam, Hong Leong, AmBank and others) | No current verified solar product terms. Check the bank's current rate and terms on its own product page. | Anyone comparing quotes |
| 0% card instalment at Trexon checkout | Up to 24 months: Affin, AmBank, HSBC, RHB and Standard Chartered 3/6/12/24 months; Alliance, OCBC and UOB 6/12/24 months | Buyers who want to spread the cost without interest |
| OKAPI rent-to-own | 7 or 10 years, you own the system at the end, insurance and warranty included, maintenance cover as set out in your OKAPI agreement. No batteries on rent-to-own. Approval needs positive cashflow, and the monthly amount comes only from OKAPI. | Homeowners who prefer a monthly plan |
| Commercial and industrial hire purchase | Mitsubishi HC Capital hire purchase, rate set by the lender, 2–5 years | Businesses |
| GTFS 5.0 (MGTC) | 60–80% government guarantee on the green-technology portion of a bank loan; companies only; no interest rebate | Companies borrowing from a participating bank |
Maybank 0% EPP is not available through Trexon. Every Trexon route starts with a RM 2,000 booking. If you pay Trexon directly, the balance is paid 70% on Solar ATAP approval and 30% on equipment delivery, before installation. Nothing is due after installation.
Choosing Between Routes
- Want to avoid interest and can handle a higher monthly payment: a 0% card instalment of up to 24 months.
- Want a lower monthly repayment: ask a bank for a written quote on a longer tenure, such as Maybank Solar PV Financing, and compare the total cost.
- Want Shariah-compliant financing: ask Islamic banks and Islamic windows for their current terms. See our Bank Islam solar financing guide.
- Considering CIMB: check current terms with CIMB. See our CIMB solar loan guide.
- Business with a large system: compare hire purchase and a bank loan, and ask your bank about GTFS 5.0.
Government Incentives That Work Alongside Financing
Several incentives reduce the net cost or the running cost of solar. Understanding how they interact with your financing helps you plan your cashflow.
Solar ATAP (Solar Accelerated Transition Action Programme)
Solar ATAP is a billing mechanism, not a grant. Excess solar energy exported to TNB earns a bill credit at the Energy Charge: RM 0.2703/kWh for homes (RM 0.3703 above 1,500 kWh a month). Businesses are credited at the monthly Average SMP.
- Unused export credit is forfeited at the end of each billing period and is not carried forward, so oversizing wastes money
- Your SEDA-registered contractor handles the application
- The contract runs for up to 10 years (GP/ST/No. 60/2025)
- Caps for homes: 5 kWac single-phase, 15 kWac three-phase
Read our complete Solar ATAP programme guide for eligibility details and the application process.
SuRIA Home Rebate
For Malaysian citizens with a home system, SuRIA Home pays RM 600 per kWac, capped at RM 3,000, to the TNB account holder. TNB notifies eligible customers, so there is no separate application.
Income Tax: GITA (Companies Only)
- GITA Asset: 60% allowance on qualifying solar capital expenditure (Tier 2), set off against up to 70% of statutory income each year, with unused allowance carried forward. Battery storage and EV charging systems qualify at 100% (Tier 1).
- Apply to MGTC after commissioning, through MyHIJAU. The system must be commissioned and the application submitted by 31 December 2026. Subject to MGTC verification.
- GITA is for companies only. Individual homeowners cannot claim it.
How to Calculate Your True Cost of Solar Financing
Before choosing a route, compare the repayment against your expected saving. Here is a worked example with catalogue numbers.
Example: 8.06 kWp System, RM 21,499 (Solis), RM 550 Monthly Bill
- System cost: RM 21,499 (Huawei adds RM 3,000, Sungrow RM 5,000)
- Bill before solar: about RM 550 a month
- Estimated saving: about RM320 a month (RM3,840 a year); bill falls to about RM 230
- Simple payback: about 5.6 years
- 25-year saving: about RM75,480 before the system cost (export credit counted for the first 10 years only)
- 0% card instalment over 24 months: RM 21,499 ÷ 24 = about RM 896 a month, higher than the saving
- What-if loan, not a bank quote: at an assumed 4% over 10 years the repayment would be about RM 218 a month, which is below the estimated saving. Real rates differ, so get a written quote.
Estimate on the RP4 domestic tariff (from 1 Jul 2025), before AFA, the 1.6% RE Fund and service tax; 3.5 sun-hours a day; about 40% of solar used at home and the rest exported and credited at the 27.03 sen Energy Charge (capped at what you import) for 10 years under Solar ATAP; no tariff increases. Your bill and roof will change the figures.
Use our solar savings calculator to run these numbers for your own bill and system size.
Step-by-Step: How to Apply for Solar Financing
Step 1: Determine Your System Size and Budget
Use our calculator to estimate system size from your monthly TNB bill. For commercial premises, book the RM500 commercial site survey, fully credited to your project when you proceed, because sizing depends on roof space, shading and peak demand.
Step 2: Obtain a Written Solar Quotation
Get a written quotation from a SEDA-registered contractor with system size (kWp), panel and inverter models, installation scope, total price, warranty terms and TNB meter coordination. Request a free Trexon quote.
Step 3: Compare Your Options
Use the table above to shortlist two or three routes. Consider whether you need Islamic financing and whether you want to avoid interest. Use our financing comparison tool for estimates.
Step 4: Run Your Credit Check
Get your CCRIS report from BNM's eCCRIS portal and work out your debt service ratio (total monthly loan commitments divided by gross monthly income). Each bank sets its own limit, so ask the bank.
Step 5: Prepare Your Documents
Typical documents (confirm the exact list with each bank):
- NRIC (colour copy)
- Recent salary slips or bank statements (self-employed)
- Income tax return with LHDN acknowledgement
- Solar system quotation from a SEDA-registered contractor
- TNB bill for the installation address
- For businesses: SSM registration, audited accounts, director's NRIC and CCRIS
Step 6: Compare the Actual Offers
You may ask more than one bank for a quote. Compare the actual Letter of Offer terms, because the quoted rate and the offered rate can differ, and look at the total cost, not only the monthly instalment.
Step 7: Accept and Proceed to Installation
Once you accept, your contractor schedules installation. With Trexon, on-site installation takes 1–2 days and booking to TNB commissioning is typically 6–10 weeks.
Common Mistakes to Avoid When Financing Solar
- Comparing flat rates with effective rates: A flat rate and an effective rate are not the same. Ask for the effective rate disclosed in the offer letter.
- Not planning cashflow: Compare your monthly repayment with your estimated saving, and remember export credit is forfeited each billing period.
- Choosing the cheapest contractor to reduce the loan: The cheapest quote can mean lower equipment quality, shorter warranties or an unregistered contractor. A contractor who cannot complete SEDA registration leaves you unable to use Solar ATAP.
- Relying on unverified rates: Always confirm the rate and terms on the bank's own page or in writing.
Frequently Asked Questions: Solar Financing in Malaysia
Can I use a bank loan to add a battery to an existing solar system?
It depends on the bank and product, so ask the bank. Note that a battery adds little to your bill saving on the RP4 tariff and is mainly a backup-power purchase.
Is there a minimum solar system size for a bank loan?
Banks may set a minimum financing amount, which differs by bank. Ask the bank. Trexon's smallest package is 6.82 kWp at RM 17,499.
Can Permanent Residents or foreigners apply for a bank loan for solar?
Eligibility for non-citizens differs by bank and product. Ask the bank before you apply.
Can I use EPF instead of taking a loan?
No. Solar panels are not on KWSP's approved home improvement withdrawal list, and Trexon does not offer EPF-funded solar.
Take the Next Step: Get a Free Quote
Understanding your financing options is step one. The next step is knowing exactly how much your system will cost and how much you can expect to save.
Browse our solar packages to find the right system for your property, use our savings calculator to model your returns, or go to our financing page to compare options.
Ready to start? Request your free solar quote from Trexon today. We will help you size the system and prepare the documents for your financing application.
