Solar ATAP vs NEM Malaysia 2026: Complete Comparison — Credits, Fees, Capacity & Savings
NEM 3.0 closed to new applications on 31 December 2025 (existing contracts continue). Solar ATAP replaced it from 1 January 2026. The biggest change: export credits are no longer 1:1, and excess credits do not carry forward. Self-consumption is now the priority strategy for maximising savings.
If you're considering solar panels for your home or business in Malaysia, you've probably heard of both NEM (Net Energy Metering) and Solar ATAP (Solar Accelerated Transition Action Programme). Understanding the differences between these two programmes is critical because it directly affects how much money you save.
This guide provides a comprehensive, side-by-side comparison based on the official GP/ST/No. 60/2025 guidelines issued by Suruhanjaya Tenaga (Energy Commission). We include real calculation examples so you can see exactly how your savings change under each programme.
Quick Overview: What Are NEM and Solar ATAP?
NEM 3.0 (Net Energy Metering)
- Active: 2016 to 31 December 2025 (now closed)
- Concept: A "virtual battery" — excess solar energy exported to the grid was credited at near 1:1 against your bill
- Carry-forward: Excess credits carried forward for up to 24 months
- Best for: Maximising export revenue
Solar ATAP
- Active: 1 January 2026 onwards
- Concept: Export credits calculated at Energy Charge rate (domestic) or Average SMP (non-domestic) — NOT 1:1
- Carry-forward: No carry-forward — excess credits forfeited each billing period
- Best for: Maximising self-consumption
Complete Side-by-Side Comparison
| Feature | NEM 3.0 (Ended) | Solar ATAP (2026) |
|---|---|---|
| Status | Closed 31 Dec 2025 | Active from 1 Jan 2026 |
| Credit Rate (Domestic) | 1:1 displaced cost (near retail rate) | Energy Charge rate only |
| Credit Rate (Non-Domestic) | 1:1 displaced cost | Average System Marginal Price (SMP) |
| Excess Credit Carry-Forward | Yes — up to 24 months | No — forfeited each billing period |
| MAQ (Export Limit) | No explicit MAQ | Capacity x 5 hours x billing days |
| Domestic Capacity (1-Phase) | Max 12kW | Max 5kW |
| Domestic Capacity (3-Phase) | Max 72kW | Max 15kW |
| Non-Domestic Capacity | Up to 1MW | Up to 100% of MD, max 1,000 kWac (1 MW) |
| Contract Period | Varies (typically FiT duration) | 10 years |
| Application Fee | Varies | RM7.50/kW |
| Implementing Agency | SEDA + TNB | SEDA |
| BESS (Battery) Allowed | Limited | Yes — encouraged |
| RECs (Environmental Attributes) | Belong to utility | Belong to consumer |
| NEM-to-ATAP Conversion | N/A | Yes (terminate NEM first) |
Understanding the Credit Mechanism — The Biggest Change
The single most important difference between NEM and ATAP is how export credits are calculated. This determines how much your solar system is "worth" when it exports excess energy to the grid.
NEM 3.0 Credit Mechanism
Under NEM, your solar system exported excess energy at a near 1:1 ratio. If your solar panels generated 1 kWh of excess energy, your bill was reduced by approximately the same amount as 1 kWh of consumption. This meant it did not matter much whether you used the energy yourself or exported it — the financial value was similar.
Solar ATAP Credit Mechanism
Under ATAP, the credit calculation is fundamentally different:
- Domestic consumers: Export credits are calculated at the Energy Charge rate only. This excludes ICPT surcharges, base tariff adjustments, and other components. Since 1 July 2025 the domestic Energy Charge is a flat RM0.2703/kWh (RM0.3703/kWh when monthly usage is above 1,500 kWh).
- Non-domestic consumers: Export credits are calculated at the Average System Marginal Price (SMP), which is the wholesale electricity price. The SMP is a wholesale price that changes every month, and is lower than the avoided retail rate (for example RM0.5068/kWh on the low-voltage non-domestic tariff).
What This Means in Practice
Under NEM, exporting 1 kWh offset roughly 1 kWh of your bill. Under ATAP, exporting 1 kWh earns only the Energy Charge (RM0.2703 for homes) or the monthly Average SMP (businesses), while using 1 kWh yourself avoids about RM0.4443. Self-consumption now saves roughly 60% more per kWh than exporting for a home.
Real Calculation Example: 6.20 kWp System, RM400 Monthly Bill
Let's work through the savings for a typical Malaysian household with a 6.20 kWp solar system (the size our savings engine matches to a RM400 monthly electricity bill on the RP4 domestic tariff).
System Assumptions
- System size: 6.20 kWp (10 panels, single-phase)
- Monthly generation: ~651 kWh (6.20 kWp x 3.5 sun-hours x 30 days)
- Self-consumption ratio: 40% (260 kWh used directly)
- Export to grid: 60% (391 kWh exported)
- Method: we compare your RP4 bill before and after solar. Solar used at home avoids the Energy, Capacity and Network charges (RM0.4443/kWh); exported solar is credited at the 27.03 sen Energy Charge (RM0.2703/kWh), capped at what you import, for the 10-year ATAP term; AFA is excluded. Your bill and roof will change the figures.
Under Solar ATAP
| Component | Value |
|---|---|
| Bill before solar | RM400 |
| Total Monthly Savings | about RM230 |
| Effective bill after solar | about RM170 |
Estimate: 3.5 sun-hours, 40% used at home, export credited at 27.03 sen for 10 years, excl. AFA.
Why Self-Consumption Matters
Under NEM 3.0, exported energy was offset 1:1 against imports. Under Solar ATAP, exported energy is credited only at the Energy Charge, so it is worth less than the energy you use yourself. The solution? Increase your self-consumption ratio.
Optimised ATAP Scenario (50% Self-Consumption)
By shifting heavy appliance usage to daytime (washing machine, EV charging, water heater) or adding a battery, you can increase self-consumption from 40% to 50%:
| Component | Value |
|---|---|
| Bill before solar | RM400 |
| Total Monthly Savings | about RM241 |
| Effective bill after solar | about RM159 |
By optimising self-consumption, monthly savings increase from about RM230 to about RM241 on the same system.
Capacity Limits: What Has Changed
Solar ATAP introduces stricter capacity limits for domestic consumers:
- Single-phase domestic: Maximum 5kW (down from 12kW under NEM)
- Three-phase domestic: Maximum 15kW (down from 72kW under NEM)
- Non-domestic: Up to 100% of Maximum Demand (MD), capped at 1,000 kWac (1 MW)
For most Malaysian homes, these limits are sufficient. A typical terrace house consumes 500-800 kWh/month, which a 5kW single-phase system handles comfortably. Larger semi-Ds and bungalows with three-phase supply can install up to 15kW, which covers most high-consumption households.
Fees and Application Process
Solar ATAP Fees
- Application fee: RM7.50 per kW (e.g., 8kW = RM60)
- CCC fee: RM1,000 for domestic systems exceeding 5kW (single phase) or 15kW (three phase)
- CAS fee: RM1,000-RM8,000 for non-domestic systems exceeding 72kW
- Contract duration: 10 years from Commencement Date
Who Handles the Application
Solar ATAP is implemented by SEDA Malaysia (Sustainable Energy Development Authority). Your SEDA-registered installer (RPVSP) handles the application process on your behalf. At Trexon Energy, we manage the entire process — from SEDA application to TNB meter upgrade to final commissioning.
Who Should Stay on NEM? Who Should Choose ATAP?
Stay on NEM if:
- - Your NEM contract is still active and not expiring soon
- - You are happy with your current system size
- - Your self-consumption ratio is low (you export a lot)
- - You benefit from the 24-month credit carry-forward
Choose Solar ATAP if:
- - You are installing solar for the first time in 2026 (NEM is closed)
- - Your NEM contract is expiring and you want to continue
- - You want to add battery storage (BESS) to your system
- - You want to own your RECs (Renewable Energy Certificates)
- - You have high daytime consumption (self-consumption optimised)
Key Advantages of Solar ATAP Over NEM
While the credit mechanism is less favourable, Solar ATAP does offer some genuine improvements:
- Capacity: NEM had a national capacity quota that was fully taken up. ATAP capacity is set by the Government and allocated first-come, first-served.
- RECs belong to you: Under NEM, environmental attributes belonged to the utility. Under ATAP, you own your Renewable Energy Certificates (RECs); check the current rules before relying on them for ESG reporting.
- BESS integration: ATAP explicitly allows battery storage, encouraging self-consumption optimisation.
- Simpler conversion: NEM consumers can convert to ATAP if they want to upgrade their system or add batteries.
Tips to Maximise Your Savings Under ATAP
- Right-size your system: Do not oversize beyond your daytime consumption. An oversized system just exports more at the lower credit rate.
- Shift heavy loads to daytime: Run washing machines, water heaters, EV chargers, and pool pumps during 9am-3pm when solar generation peaks.
- Consider battery storage: A 5-10 kWh battery can capture excess daytime generation for evening use, avoiding the lower export credit rate.
- Monitor and optimise: Use your inverter's monitoring app (Huawei FusionSolar, Solis Cloud, or Sungrow iSolarCloud) to track self-consumption and adjust usage patterns.
- Use smart home automation: Timer switches and smart plugs can automatically schedule appliance usage during peak solar hours.
Frequently Asked Questions
What is the main difference between Solar ATAP and NEM?
The main difference is the credit mechanism. Under NEM 3.0, exported solar energy was credited at a 1:1 ratio. Under Solar ATAP, domestic consumers receive credits at the Energy Charge rate only (not the full tariff), and non-domestic consumers receive credits at the Average SMP. Excess credits are forfeited each billing period.
Can I convert from NEM to Solar ATAP?
Yes. You must terminate your NEM agreement first, then apply for Solar ATAP through SEDA. The conversion is one-way — you cannot go back to NEM.
Is Solar ATAP worth it compared to NEM?
For new installations, ATAP is your only option. For existing NEM users, staying on NEM is generally better unless your contract is expiring or you want to add batteries/expand capacity.
What is the MAQ under Solar ATAP?
MAQ (Maximum Allowable Quantity) = Capacity (kWac) x 5 sun hours x billing period days. For an 8kW system over 30 days: 8 x 5 x 30 = 1,200 kWh maximum export per billing cycle.
Do excess Solar ATAP credits carry forward?
No. Excess credits are forfeited at the end of each billing period. This is why self-consumption optimisation is critical under ATAP.
What is the application fee for Solar ATAP?
RM7.50 per kW of installed capacity. An 8kW system costs RM60 in application fees. CCC fee of RM1,000 applies for domestic systems exceeding 5kW (1-phase) or 15kW (3-phase).
Next Steps
Whether you are a new solar customer or an existing NEM user evaluating your options, understanding these differences is crucial for making an informed decision. Here are your recommended next steps:
