What is the TNB electricity tariff rate in Malaysia 2026?

Since 1 July 2025, domestic customers are billed under the RP4 Domestic General tariff: an Energy Charge of 27.03 sen/kWh (up to 1,500 kWh a month) or 37.03 sen/kWh for all kWh above 1,500, plus a Capacity Charge of 4.55 sen/kWh, a Network Charge of 12.85 sen/kWh and a RM10 monthly Retail Charge (waived at up to 800 kWh a month until 31 December 2026). An Energy Efficiency Incentive is deducted for households using up to 1,000 kWh a month. The old block rates (21.80 to 57.10 sen/kWh) applied before July 2025 and are no longer current.

What is the AFA (formerly ICPT) and how much is it in 2026?

Since July 2025 the ICPT has been replaced by the Automatic Fuel Adjustment (AFA), which is set monthly from fuel prices and exchange rates, as determined by the Energy Commission. In October 2026 the AFA is +3.61 sen/kWh (TNB forecasts: November +4.27, December +4.46, January 2027 +7.59). Domestic customers using up to 800 kWh a month are exempt from the AFA until 31 December 2026.

What is the difference between MV General and MV Time of Use?

Both replaced the old C1/C2 and E1/E2 tariffs on 1 July 2025 and are for medium voltage non-domestic consumers. MV General has a flat energy rate of 29.83 sen/kWh with a lower MD charge of RM89.27/kW/month. MV Time of Use has a higher MD charge of RM97.06/kW/month (on peak-period demand) but a lower off-peak energy rate (27.23 sen/kWh; peak 31.32 sen/kWh). Businesses that can shift loads to off-peak hours often benefit from MV Time of Use.

How does the kVARh reactive power penalty work?

The kVARh penalty is charged when your power factor falls below 0.85. It applies to medium and high voltage consumers. TNB measures both real power (kWh) and reactive power (kVARh). If your reactive consumption exceeds the equivalent of 0.85 power factor, the excess kVARh is billed at 1.50 sen/kVARh. For a factory drawing 1,000 kVARh in excess per month, that is RM15/month — small individually but compounded across multiple bills, significant.

How much can solar reduce my TNB bill?

It depends on your usage and system size. In the worked example on this page (500 kWh/month, solar offsetting 300 kWh), the estimated bill falls from about RM162 to about RM39. For commercial consumers, solar reduces the energy charge; Maximum Demand is not reliably reduced by solar alone, because one cloudy half-hour can still set the month's MD. Send us your TNB bills for a site-specific estimate.

Will TNB tariffs increase in 2027?

Base rates for the current period are fixed under the RP4 schedule, but fuel costs are now passed through monthly via the Automatic Fuel Adjustment (AFA). TNB forecasts +4.27 sen/kWh for November 2026, +4.46 for December and +7.59 for January 2027, so your effective rate can change from month to month.

Does solar eliminate the fixed charges on TNB bills?

No. The RM10 monthly Retail Charge (waived at up to 800 kWh a month until 31 December 2026) is a fixed charge that remains regardless of your solar generation. Solar reduces the variable components — the Energy, Capacity and Network charges per kWh you no longer buy from the grid.

What is Solar ATAP and how does it interact with TNB tariffs?

Solar ATAP (Solar Accelerated Transition Action Programme) replaced NEM from 1 January 2026. It is Malaysia's solar self-consumption programme for residential and commercial consumers. Excess solar energy exported to the grid is credited at the TNB Energy Charge rate for domestic customers (RM 0.2703/kWh, or RM 0.3703/kWh above 1,500 kWh a month), or at the Average System Marginal Price (SMP) for non-domestic customers. Critically, unused credits are forfeited at the end of each Billing Period — there is no roll-over — size your system to self-consume as much as possible.

TNB Tariff Education GuideUpdated 202618 min read

TNB Tariff Rate Malaysia 2026: How Your Electricity Bill is REALLY Calculated

Most Malaysians overpay on their electricity bills without knowing it. This guide decodes every line item — residential energy, capacity and network charges, commercial MD charges, the Automatic Fuel Adjustment (AFA), kVARh penalty — and shows how solar reduces the most expensive components.

By Chandra Rau, CEO, Trexon Energy

1Residential Tariff
2Interactive Bill Calculator
3Medium Voltage Tariff (MV General / ToU)
4MV & HV Tariff Rates
5Hidden Charges on Your Bill
6How Solar Attacks Each Component
7TNB Tariff History & Trends
8FAQ

Residential / Kediaman

Residential Tariff (Domestic General): The RP4 Structure from July 2025

Since 1 July 2025, domestic customers pay an Energy Charge of 27.03 sen/kWh (up to 1,500 kWh a month) or 37.03 sen/kWh for all kWh once usage goes above 1,500, plus a Capacity Charge (4.55 sen/kWh), a Network Charge (12.85 sen/kWh) and a RM10 monthly Retail Charge (waived at up to 800 kWh a month until 31 December 2026). An Energy Efficiency Incentive is deducted for households using up to 1,000 kWh a month.

Charge	Rate (sen/kWh)	Visual	Notes
Energy Charge (up to 1,500 kWh/month)	27.03 sen	73%	Up to 1,500 kWh/month
Energy Charge (above 1,500 kWh/month)	37.03 sen	100%	All kWh once above 1,500 kWh/month
Capacity Charge	4.55 sen	12%	Per kWh, all domestic customers
Network Charge	12.85 sen	35%	Per kWh, all domestic customers

Plus the RM10 Retail Charge (waived at up to 800 kWh a month until 31 Dec 2026) and the Automatic Fuel Adjustment (AFA, +3.61 sen/kWh in October 2026; households using up to 800 kWh a month are exempt until 31 Dec 2026). The Energy Efficiency Incentive is deducted for up to 1,000 kWh a month.

How Solar Cuts the Residential Bill

Each kWh your solar system supplies avoids the Energy, Capacity and Network charges, about 44.43 sen/kWh in total (27.03 + 4.55 + 12.85), or 54.43 sen/kWh once usage is above 1,500 kWh a month. Households with higher bills benefit most.

Interactive Tool

Interactive Bill Calculator

Enter your monthly bill or kWh usage to see your bill breakdown and solar savings potential.

Monthly Bill (RM)

or enter kWh directly

Monthly Usage (kWh)

kWh

Your Bill Breakdown — 400 kWh/month

Energy, Capacity & Network Charges

Energy (27.03 sen)

RM 108.12

Capacity (4.55 sen)

RM 18.20

Network (12.85 sen)

RM 51.40

Energy, Capacity & Network Charges

RM 177.72

Energy Efficiency Incentive

RM -68.00

Estimated Total

RM 109.72

Estimated Solar Savings

RM 90.29

Estimate based on the TNB RP4 Domestic General tariff (from 1 July 2025). Excludes the RE Fund and service tax, and assumes the AFA does not apply (up to 800 kWh a month, until 31 Dec 2026). Actual bill may vary.

Commercial / Komersial

Medium Voltage Tariff (formerly C1 / C2): The Maximum Demand Trap

Since 1 July 2025, commercial and industrial consumers on medium voltage supply face a dual-component bill: energy charges (kWh) AND a Maximum Demand charge (kW). The MD charge is often larger than the energy charge for many businesses — and most owners don't notice it.

MV General (most common)

Max Demand ChargeRM 89.27/kW/month

Energy (Peak)29.83 sen/kWh (flat)

Energy (Off-Peak)29.83 sen/kWh (flat)

Peak Hours2:00 PM – 10:00 PM (Monday–Friday)

MV General is simpler — one energy rate, lower MD (RM89.27 vs RM97.06/kW). Best for operations without flexible load shifting.

MV Time of Use (Peak/Off-Peak)

Max Demand ChargeRM 97.06/kW/month

Energy (Peak)31.32 sen/kWh

Energy (Off-Peak)27.23 sen/kWh

Off-Peak Hours10:00 PM – 2:00 PM on weekdays; all day Saturday, Sunday and public holidays

MV ToU suits businesses that can shift loads to off-peak hours. Higher MD, but off-peak energy is 8.7% cheaper than the MV General rate.

The Maximum Demand Hidden Cost — Real Example

A Petaling Jaya office complex with a 200 kW maximum demand (MV General) pays:MD alone: 200 kW x RM89.27 = RM17,854/month = RM214,248/yearThat is before a single kWh of energy is billed. Solar alone does not reliably cut this charge, because one cloudy half-hour can still set the month's MD.

Full guide: How to reduce TNB MD penalty by 20%

Industrial / Perindustrian

MV & HV Tariffs (formerly E1 / E2 / E3): Where Solar ROI is Highest

Since 1 July 2025, the old industrial tariffs E1, E2 and E3 have been replaced by non-domestic tariffs grouped by supply voltage. Factories on MV Time of Use that run in the afternoon overlap with part of solar generation, which can make solar a strong energy measure.

Tariff	MD Charge (RM/kW/mo)	Peak (sen/kWh)	Off-Peak (sen/kWh)	Solar Benefit
MV General	89.27	29.83	N/A (flat)	Reduces kWh and MD
MV Time of UseBest for Solar	97.06	31.32	27.23	Peak solar aligns with peak tariff — maximum savings
HV General	31.21	43.03	N/A (flat)	Large-scale solar; high energy rate
HV Time of Use	44.82	44.52	40.43	Large-scale solar; significant MD reduction

MV ToU Solar Alignment Advantage

Only roughly 2 PM–7 PM of solar output overlaps the MV ToU peak window (2 PM–10 PM, Monday–Friday); morning output falls in off-peak. Solar still reduces the energy bill, but not every solar kWh earns the peak rate.

Running a business? Commercial solar on the Non-Domestic LV tariff

See how a commercial solar installation in Malaysia is sized against your bill. A factory on a medium-voltage supply: factory solar and maximum demand.

Bill Anatomy

Hidden Charges on Your TNB Bill

Beyond the base tariff, your bill contains several charges that most consumers overlook. Together they can add noticeably to your total electricity cost.

Automatic Fuel Adjustment (AFA)

HIGH IMPACT

+3.61 sen/kWh (October 2026)Applies to: All customers; domestic customers using up to 800 kWh/month are exempt until 31 Dec 2026

Since July 2025 the ICPT has been replaced by the AFA, set monthly from fuel prices and exchange rates as determined by the Energy Commission. TNB forecasts +4.27 sen/kWh for November, +4.46 for December and +7.59 for January 2027.

kVARh Reactive Power Penalty

HIGH IMPACT

1.50 sen/kVARh excessApplies to: Medium and high voltage consumers

Charged when power factor falls below 0.85. Inductive loads (motors, air-conditioning, compressors) cause poor power factor. Fix: install power factor correction capacitor banks.

Service Tax

MEDIUM IMPACT

8%Applies to: Domestic customers using more than 800 kWh/month

TNB applies 8% service tax to domestic customers whose monthly consumption is above 800 kWh.

Retail Charge

LOW IMPACT

RM10/monthApplies to: Domestic customers (waived at up to 800 kWh/month until 31 Dec 2026)

A fixed monthly charge that remains regardless of your solar generation. TNB waives it for households using up to 800 kWh a month until 31 December 2026 (normally up to 600 kWh).

Connected Load Charge

MEDIUM IMPACT

RM3.00/kVA/monthApplies to: Large industrial (HV) consumers

Applied to high-voltage consumers based on their connected transformer capacity. It is separate from Maximum Demand and reflects the physical infrastructure TNB must maintain for your connection.

Solar Strategy

How Solar Attacks Each Bill Component

Solar does not just reduce your kWh — it strategically targets every expensive component of your TNB bill. Here is the full picture.

Before Solar

(500 kWh/month, RP4 Domestic General)

Energy (27.03 sen × 500)

RM 135.15

Capacity (4.55 sen × 500)

RM 22.75

Network (12.85 sen × 500)

RM 64.25

Energy Efficiency Incentive (−12.0 sen × 500)

RM −60.00

Total BillRM 162.15

After Solar

(solar offsets 300 kWh/month)

Energy (27.03 sen × 200)

RM 54.06

Capacity (4.55 sen × 200)

RM 9.10

Network (12.85 sen × 200)

RM 25.70

Energy Efficiency Incentive (−25.0 sen × 200)

RM −50.00

Total BillRM 38.86

Saving: about RM 123/month (76% reduction, estimate)

Bill Component	Residential	Commercial	Industrial
Energy charges (kWh)	Reduces Energy, Capacity & Network charges	Reduces peak kWh	Reduces peak kWh
Maximum Demand (MD)	N/A (no MD for domestic)	Not reliably reduced by solar alone	Not reliably reduced by solar alone
Automatic Fuel Adjustment (AFA)	Proportional reduction	Proportional reduction	Proportional reduction
kVARh reactive penalty	N/A	No direct impact	No direct impact
Service Tax (domestic above 800 kWh/month)	Lower with lower grid usage	N/A	N/A

Historical Trend

TNB Tariff History & Future Trend

TNB moved to the RP4 tariff structure on 1 July 2025. The old Tariff A blocks no longer apply, and fuel costs are now passed through monthly via the Automatic Fuel Adjustment (AFA).

Period	Energy Rate (sen/kWh)	Fuel Adjustment	Key Event
Before 1 Jul 2025	21.80 – 57.10 sen/kWh	ICPT	Old block tariff (pre-July 2025) — no longer applies
2026NOW	27.03 / 37.03 sen/kWh	AFA	RP4 Domestic General — Energy Charge up to / above 1,500 kWh