All Solar Panel Subsidies & Incentives Malaysia 2026

All 8 Solar Incentives at a Glance

Malaysia has the most comprehensive solar incentive stack in Southeast Asia. Here is every programme available in 2026:

Solar ATAP (Akta Tenaga Penggunaan Sendiri) is the foundation of Malaysia's solar policy. Under GP/ST/No. 60/2025, you install solar panels and self-consume the electricity — reducing your TNB bill directly. Any surplus goes to the grid at the System Marginal Price (SMP) for businesses, or Energy Charge rate for households. The savings compound over the system's 25+ year lifespan, with total lifetime savings of RM50,000–150,000 for a typical home. Unlike NEM 3.0 which had a fixed export rate, Solar ATAP prioritises self-consumption — the more you use during daylight hours, the higher your returns.

GITA (Green Investment Tax Allowance) is the most powerful tax incentive for Malaysian businesses installing solar. Under Schedule 7A of the Income Tax Act 1967, your company receives a 60% tax allowance on qualifying capital expenditure — set off against 70% of your statutory income each year for up to 5 years. On a RM500,000 solar system, GITA generates RM300,000 in allowances. At 24% corporate tax, that is RM72,000 in actual tax saved. GITA is approved by MIDA (Malaysian Investment Development Authority) and requires MyHIJAU certification for the equipment. Critical: you must submit the MIDA application BEFORE installation begins — retroactive applications are not accepted.

Capital Allowance (CA) under Schedule 3 of the Income Tax Act 1967 allows companies to deduct the full cost of solar equipment against taxable income over time. Solar PV is classified as 'Plant & Machinery' — one of the most generous CA categories. Year 1: claim 20% Initial Allowance (IA) + 14% Annual Allowance (AA) = 34% of system cost deducted immediately. Years 2-6: 14% per year until 100% recovered. On a RM200,000 system, Year 1 alone gives you a RM68,000 tax deduction. At 24% corporate tax, that is RM16,320 cash saved in Year 1 alone. Unlike GITA, CA requires no pre-approval and has no deadline — every company buying solar qualifies automatically.

The SolaRIS (Solar Residential Incentive Scheme) programme provided a RM4,000 cash rebate for residential solar installations. It officially ended in April 2025 and is no longer accepting applications. All annual quota has been fully allocated. If you were hoping to benefit from SolaRIS, it is no longer an option. For residential customers in 2026, the best available options are: (1) Solar ATAP bill credit programme — export excess solar energy to TNB for bill credits, (2) at 0% interest, (3) Maybank / CIMB Green Financing.

Sarawak has its own electricity grid (Sarawak Energy Berhad — SEB) and its own solar incentive programme separate from TNB and federal SEDA. The Sarawak NEM subsidy provides up to RM12,000 direct subsidy on residential solar installations — triple the SolaRIS rebate available in Peninsular Malaysia. This reflects Sarawak's abundant hydro capacity and government policy to encourage distributed solar. The subsidy is applied upfront, reducing what you pay to the installer directly. Only available through SEB-registered solar installers in Sarawak.

GTFS (Green Technology Financing Scheme) provides a 2% per annum interest rate subsidy and 60% government guarantee on loans for qualifying green technology projects, including solar PV. For a RM200,000 commercial solar system financed over 7 years at 6% bank rate, GTFS reduces the effective rate to 4% — saving approximately RM18,000 in interest over the loan period. The government guarantee also makes approval easier for SMEs that might not meet standard bank collateral requirements. Administered by MGTC (Malaysian Green Technology & Climate Change Corporation), participating banks include CIMB, Maybank, RHB, Bank Islam, and AmBank.

Solar panels, inverters, and related equipment imported for green technology installations may be exempt from import duty and sales tax under the Malaysia Green Technology Master Plan. The exemption applies to equipment that has received MyHIJAU certification from MGTC. For large commercial or industrial installations where equipment is imported directly (bypassing local distributors), this can represent 5-15% of equipment cost. SEDA-registered installers like Trexon Energy typically manage this process on behalf of commercial clients for large-scale projects.

My Solar Savings Calculator

Select all incentives you qualify for to see your total potential savings:

Which Incentives Apply to Me?

Answer 3 quick questions to identify your eligible programmes:

All Incentives: Side-by-Side Comparison

Use this table to quickly see which programmes apply to your situation:

Application Timeline: When to Apply for Each

Timing your applications correctly can save weeks of delay. Here is the optimal sequence:

Frequently Asked Questions