TNB MD charge is RM89.27/kW/month — the biggest hidden cost on your factory bill. Most C1/C2 tariff consumers overpay by RM6,000–50,000/month without realising it. Learn 5 proven strategies used by Malaysian manufacturers to cut maximum demand by 15–30%.
Maximum Demand is the highest 30-minute average power draw recorded on your meter during the billing period. TNB charges you for this peak capacity reservation — regardless of whether you actually use it consistently.
Illustrative. Actual bill varies by tariff, usage pattern, and PF. MD rate: RM89.27/kW/month (TNB 2026).
TNB averages your power draw every 30 minutes. The single highest 30-min reading each month becomes your MD.
A single simultaneous machine startup sets your MD for 30 days — even if it never happens again that month.
MD charges are capacity reservation fees — you pay them regardless of actual energy consumed that month.
Enter your current Maximum Demand to see exactly what you are paying — and how much you can save.
Based on TNB Tariff C1/C2 MD rate of RM89.27/kW/month (2026)
Example: A 500kW factory pays RM44,635/month in MD alone
That is RM535,620/year in capacity charges before a single kWh of energy is billed. A 20% MD reduction saves RM107,124/year — often more than the total cost of a solar system.
These strategies are ranked from lowest cost to highest ROI. Implement them in order for the fastest payback.
Sequence machine startups over 5–10 minute intervals instead of simultaneous starts. One production line firing up all motors at once can spike your MD for the entire month. This is the highest-leverage, zero-cost intervention available to any factory.
Install automatic capacitor banks at your main distribution board to bring power factor above 0.95. Poor PF artificially inflates your apparent demand and triggers higher MD readings — plus TNB charges a separate power factor penalty below 0.85.
Install VSD on your largest motor loads: HVAC fans, compressors, conveyor belts, and pumps. A VSD reduces motor startup inrush current from 6–8x rated to 1.5x rated, directly cutting your MD spike. VSD also save 20–40% on motor energy consumption.
A rooftop solar system generates power during peak daylight hours (9am–4pm), directly offsetting your grid draw during the busiest production period. For most Malaysian factories, this coincides precisely with maximum demand windows. Solar-only MD reduction: 10–25%.
Battery Energy Storage Systems charge during off-peak hours (11pm–7am) at cheaper E1 tariff rates and discharge during your peak demand window. Unlike solar, BESS works regardless of weather and can be programmed to target your specific MD spike times with millisecond response.
| Strategy | MD Saving | Cost | Payback |
|---|---|---|---|
| Load Staggering | 5–10% | RM0 | Immediate |
| Power Factor Correction | 5–15% | RM15K–50K | 12–24mo |
| VSD on Motors | 10–20% | RM5K–20K/motor | 18–36mo |
| Solar Peak Shaving | 10–25% | RM25K–200K+ | 3–5yr |
| BESS Peak Shaving | 15–30% | RM80K–500K | 4–7yr |
This chart shows how solar + BESS peak shaving flattens a typical Selangor factory load curve. The red dotted line is the old MD peak. The green bars show the new reduced demand profile.
Solar peak shaving zone (8am–4pm): average demand reduced from 88% to 62% of installed capacity — a sustained 30% MD reduction during the critical billing window.
A Selangor automotive parts manufacturer engaged Trexon for a full MD reduction audit in 2025. Here are the verified results after 6 months of operation.
Installed: Q3 2025 | System: 480kWp Solar + 200kWh BESS + Capacitor Banks
"We had no idea 52% of our TNB bill was just the MD charge. After Trexon audited our production schedule and installed the solar+BESS system, our electricity bill dropped by RM17,000 per month. The GITA application they handled saved us another RM28,000 in taxes."
— Operations Director, Selangor Auto Parts Manufacturer
Battery Energy Storage Systems (BESS) qualify for Malaysia Green Investment Tax Allowance (GITA), administered by MIDA. This makes BESS dramatically more affordable for Malaysian manufacturers.
Claim 60% Investment Tax Allowance on qualifying BESS capital expenditure via a MIDA green technology application
Apply the ITA against up to 70% of your company statutory income each year until the allowance is fully utilised
At 24% corporate tax: 60% ITA × 70% income × 24% tax = effective 10.1% annual cash saving. Net cost reduction over claim period: ~42%
Trexon delivers an integrated solar + BESS + energy efficiency solution specifically engineered for maximum demand reduction at Malaysian factories.
We analyse 12 months of TNB bills to identify your MD pattern, peak hours, and zero-cost quick wins. Free of charge.
Rooftop solar sized specifically for your peak demand window, maximising MD reduction during your busiest production hours.
LFP battery systems with AI-driven dispatch algorithms that automatically target your MD peak windows with millisecond precision.
Automatic capacitor banks that maintain PF above 0.95, eliminating power factor penalties and reducing apparent MD readings.
Live demand, solar output, BESS state-of-charge, and projected monthly MD — visible on your phone dashboard 24/7.
Our team prepares and submits your GITA application to MIDA, maximising your tax incentive return on the BESS investment.
Get a free MD reduction assessment from Trexon certified engineers. We calculate your exact savings potential before any commitment.