Solar ATAP vs NEM 3.0: What Changed on January 1, 2026 (And How It Affects Your Savings)
Critical Policy Change — verify the current programme route
NEM 3.0 intake has closed under its published programme timetable. New applicants should verify the current Solar ATAP or SELCO route, eligibility and export-credit treatment against the latest Energy Commission and TNB notices.
In this article
- 1.The Big Switch — NEM to ATAP
- 2.Side-by-Side Comparison Table
- 3.What "No Carry Forward" Means
- 4.The New Strategy
- 5.Domestic vs Commercial Credit Rates
- 6.How to Maximise Savings
- 7.How to Apply for Solar ATAP
- 8.Frequently Asked Questions
The Big Switch — NEM to ATAP
For nearly a decade, Malaysian solar adopters benefited from the Net Energy Metering (NEM) programme. NEM 3.0 was its final iteration. On January 1, 2026, it was replaced by Solar ATAP (Solar Accelerated Transition Action Programme), governed by Energy Commission guidelines GP/ST/No. 60/2025.
Side-by-Side Comparison: NEM 3.0 vs Solar ATAP
| Feature | NEM 3.0 Intake closed under published timetable | Solar ATAP From Jan 1, 2026 |
|---|---|---|
| Programme name | NEM 3.0 / NEM Rakyat | Solar ATAP |
| Governing document | SEDA NEM guidelines | GP/ST/No. 60/2025 (Energy Commission) |
| Domestic export credit rate | 1:1 (NEM Rakyat — same as grid import rate) | Energy Charge rate only (lower than retail) |
| B2B / Commercial credit rate | Displaced cost rate | Average SMP (System Marginal Price, monthly) |
| Credit carry forward | YES — credits carried forward to later bills | NO — expires each billing period |
| Residential system cap | 72 kWp | 5 kWac single-phase / 15 kWac three-phase (larger needs a TNB CCC) |
| Commercial/Industrial cap | 1 MW | 1,000 kWac, not exceeding 100% of MD |
| Self-consumption priority | Optional — export was profitable | MANDATORY for best ROI |
| Application body | SEDA Malaysia | SEDA Malaysia |
| Meter requirement | Bi-directional meter | Bi-directional meter |
What "No Carry Forward" Means for You
This is the single most impactful change under Solar ATAP. Let us break down the difference with an illustrative example.
Under NEM 3.0 (OLD)
- Exported excess kWh stored as credits in your account
- Credits could be carried forward to later bills
- Generated excess in sunny months? Use credits during rainy seasons
- Oversizing your system was a valid strategy
Under Solar ATAP (NEW)
- Credits applied to the current billing period only
- Surplus credit at the end of each billing period: FORFEITED
- Cannot bank daytime generation for nighttime or future months
- Oversizing means paying for panels that generate value you lose
Monthly Generation vs Consumption — Where Credits Go to Die
12kW oversized system on a 1,000 kWh/month home
The New Strategy — Right-Size for Self-Consumption
Under NEM, "install maximum panels" was sound advice. Under Solar ATAP, oversizing can cost you, because unused export credit is forfeited monthly.
OLD strategy (NEM era)
Maximise system size. Export excess at 1:1 rate. Credits roll over. Bigger = better ROI.
NEW strategy (ATAP era)
Size to your daytime use (monthly kWh / 105 = kWp) rather than total consumption. Maximise self-consumption. Every kWh used directly is worth about 1.6× more than an exported credit.
Rule of thumb: Size from your TNB bill and daytime usage (monthly kWh ÷ 105 = kWp needed). Oversizing sends more energy to the grid, where exports earn only energy-charge credit that is forfeited monthly if unused.
Find Your ATAP-Optimal System Size
* 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. Prices are Solis catalogue prices. Your bill and roof will change the figures.
Domestic vs Commercial Credit Rates Under ATAP
Not all users are compensated equally for solar exports. Understanding your tariff category is critical.
Tariff A (Domestic)
Non-domestic MV (Commercial)
Non-domestic MV/HV (Industrial)
SMP (System Marginal Price) is the wholesale electricity market clearing price. It is published by the Energy Commission and fluctuates monthly. The monthly Average SMP is generally lower than the retail energy rate you avoid by self-consuming (RM0.4443/kWh for a home).
How to Maximise Savings Under Solar ATAP
The rules changed, but your ability to save has not — if you adapt your strategy. Here are the five highest-impact moves:
Right-size your system
CriticalSize your system to your daytime use. Use our calculator to find a suitable size for your TNB bill.
Shift heavy loads to daytime
High ImpactRun washing machine, dishwasher, water heater, pool pump, and EV charging between 9am–4pm. Use solar energy directly instead of exporting it.
Add battery storage
High ROIA home battery such as Huawei LUNA2000 or SolisStorage stores excess daytime solar for nighttime use — replacing grid electricity at full retail rates instead of exporting at reduced SMP/Energy Charge rates.
Monitor and optimise in real time
OngoingUse real-time monitoring (via your inverter manufacturer's app) to track your self-consumption ratio daily. Higher self-consumption is better.
B2B: Target demand charge reduction
B2B PriorityFor commercial and industrial users, reducing Maximum Demand (MD) can be more valuable than export credits. Solar and battery sizing must use the customer tariff, interval data and current programme rules.
How to Apply for Solar ATAP Through a SEDA-Registered Installer
The application process is similar to NEM. Here is the current flow for residential applicants:
Get a quotation from a SEDA-registered installer (RPVSP)
Your installer must be registered with SEDA. Trexon Energy is a SEDA-registered RPVSP (SEDA-RPVSP-2026/373) and handles the Solar ATAP application.
Submit application through SEDA Online
Your installer submits the Solar ATAP application on your behalf via the SEDA online portal with technical drawings.
Wait for Letter of Approval (LOA)
SEDA reviews and issues an LOA. Timing depends on the queue; from booking to commissioning, the whole process typically takes 6–10 weeks.
Install the solar system
Your installer proceeds with installation after LOA. Work must comply with Energy Commission standards.
TNB installs bi-directional meter
After installation, TNB schedules meter replacement. This is required before grid interconnection.
Commissioning and connection
Your system is connected to the grid and ATAP credits begin appearing on your next TNB bill.
Frequently Asked Questions
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Get Your ATAP-Optimised Solar Quote
Our calculator accounts for the Solar ATAP rules — including the no-carry-forward policy — to recommend a system size suited to your bill.
