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Configure solarTNB maximum-demand charges are tariff-specific and can be a major hidden cost on a factory bill. C1/C2 customers should use the rate printed on their current bill. Learn 5 practical 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 C1 input only. Actual MD rate varies by tariff, voltage, billing schedule and power factor; verify the current bill.
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.
Illustrative only — enter the MD rate shown on your current TNB bill
Example: model a 500kW factory using its current tariff bill
The annual result depends on the tariff-specific RM/kW rate and interval data. Treat any saving as a modeled scenario until the bill and load profile are checked.
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.
Illustrative 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
Some BESS projects may qualify for Malaysia's GITA Asset regime, subject to the asset category, certification, applicant, timing and statutory-income rules. Confirm the current administering body and treatment with MGTC and your tax adviser before using any savings figure.
Confirm the applicable GITA Asset category, certification and application route with MGTC and your tax adviser
Apply the ITA against up to 70% of your company statutory income each year until the allowance is fully utilised
An allowance percentage is not a cash-cost reduction. Model utilisation, statutory income, tax rate and timing with your tax adviser.
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 can help prepare the evidence pack; MGTC and your tax adviser must confirm eligibility and the current application route.
Get a free remote MD reduction assessment from Trexon certified engineers. We analyse your TNB data and calculate your savings potential before any commitment.