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Configure solarTNB E2 TOU tariff charges 35.50 sen/kWh during peak and 21.90 sen/kWh off-peak — plus RM97.06/kW MD charge. Solar generates 90% of output during peak hours, displacing the most expensive electricity. This guide shows you exactly how to maximise savings with TOU.
Time of Use tariff charges different kWh rates based on when you consume electricity — not just how much you consume. TNB offers TOU under Tariff E2 for medium voltage commercial and industrial consumers. Instead of one flat rate all day, you pay more during peak hours when grid demand is high, and less during off-peak hours when the grid has surplus capacity.
Peak Hours
35.50 sen/kWh
8:00am – 10:00pm (Monday–Saturday)
14 hours/day on weekdays = the majority of business hours
Off-Peak Hours
21.90 sen/kWh
10:00pm – 8:00am + All day Sunday + Public Holidays
Nights, all day Sunday, and Malaysian public holidays
Monday – Saturday daily pattern. Sunday and public holidays are fully off-peak.
E2 has three billing components: a Maximum Demand charge per kW, a peak kWh rate, and an off-peak kWh rate. Understanding all three is critical to evaluating whether E2 is right for your business.
| Component | E1 (Flat Rate) | E2 TOU |
|---|---|---|
| MD Charge | RM 35.50/kW/mo | RM 97.06/kW/mo |
| Peak kWh Rate | 33.70 sen (flat) | 35.50 sen |
| Off-Peak kWh Rate | 33.70 sen (flat) | 21.90 sen |
| Solar kWh Value | 33.70 sen | 35.50 sen |
| BESS Arbitrage Spread | N/A (flat rate) | 13.60 sen/kWh |
When does E2 beat E1? When off-peak consumption exceeds 60% of total usage.
Here is the fundamental insight: solar panels generate maximum output between 9am and 4pm. The TOU peak window runs from 8am to 10pm. Solar generation falls almost entirely inside the peak billing window — meaning every kWh your solar panels produce displaces expensive peak electricity at 35.50 sen, not cheap off-peak electricity at 21.90 sen.
Solar value is 62% higher on TOU vs flat rate E1
Solar displaces 35.50 sen/kWh on E2 TOU vs 33.70 sen/kWh on E1 flat — every panel is worth 5.3% more in annual savings.
Solar generation (yellow curve) aligns almost perfectly with TOU peak hours (orange band). Every solar kWh displaces 35.50 sen peak electricity.
Solar generates 9am–4pm, entirely within the 8am–10pm peak window. Zero off-peak solar output wasted on cheap rates.
Each kWh from solar saves 35.50 sen (peak) instead of 33.70 sen (flat). Over 25 years at 100kWp, this extra 1.80 sen/kWh compounds to RM200,000+.
Solar reduces grid demand during peak production hours. On E2, every kW of MD reduction saves RM97.06/month — 2.7x more valuable than on E1.
Enter your consumption details to compare your bill on E1 flat rate vs E2 TOU — with and without solar.
kWh / month
kW
kWp (set to 0 for no solar)
E1 Flat Rate Bill
RM 23,950
/month
E2 TOU Bill (No Solar)
RM 34,782
/month
E2 TOU Bill + Solar
RM 29,007
/month
Extra savings from TOU vs flat rate
Solar saves this much MORE on E2 vs E1 tariff
RM 0
Based on TNB E2 TOU tariff 2026. Solar generation estimated at 4.5 peak sun hours/day, 80% yield.
Battery Energy Storage Systems unlock a second profit stream on TOU tariff: arbitrage. Charge your batteries during off-peak hours when electricity costs 21.90 sen/kWh. Discharge during peak hours when electricity costs 35.50 sen/kWh. The arbitrage spread is 13.60 sen per kWh per cycle.
Off-Peak
10pm – 8am
21.90 sen/kWh
Charge BESS
Arbitrage value: 13.60 sen/kWh per cycle
Peak Hours
8am – 10pm
35.50 sen/kWh
Discharge BESS
| BESS Size | Monthly Arbitrage | Annual Arbitrage |
|---|---|---|
| 100 kWh | RM 408 | RM 4,964 |
| 300 kWh | RM 1,224 | RM 14,892 |
| 500 kWh | RM 2,040 | RM 24,820 |
| 1,000 kWh | RM 4,080 | RM 49,640 |
Based on 1 cycle/day, 13.60 sen/kWh arbitrage spread, 30-day month. Excludes BESS charge/discharge efficiency losses (~90%).
Buy cheap off-peak, sell value during peak. 13.60 sen/kWh spread per daily cycle.
Discharge at demand peaks to lower your MD reading. On E2, each kW saved = RM97.06/month.
Store excess midday solar. Release during evening peak (4pm–10pm) when solar no longer generates.
E2 is not automatically better than E1. The answer depends on your consumption pattern, your MD, and whether you have — or plan to install — solar or BESS. Use this decision framework to assess your situation.
Your off-peak consumption exceeds 60%
The cheap off-peak rate (21.90 sen) drives your average kWh cost below E1's 33.70 sen flat rate, even after paying the higher MD charge.
You have or plan to install solar
Solar generates during peak hours (35.50 sen vs 33.70 sen flat). Every panel you install is 5.3% more valuable on E2 than on E1.
You operate BESS for demand management
TOU arbitrage (13.60 sen/kWh spread) provides a direct revenue stream on top of demand charge savings. BESS payback is materially faster on E2.
You run a night-shift operation
Night production (10pm–8am) runs entirely on off-peak rates, dramatically cutting your energy cost without changing operations.
You operate only during daytime peak hours
If all consumption is during peak hours, E2 costs more per kWh AND charges a 2.7x higher MD rate — a double penalty.
Your MD is very high relative to kWh consumption
The E2 MD premium (RM97.06 vs RM35.50) adds RM61.56/kW/month. If your MD is 500kW, that is RM30,780/month extra — it takes a lot of kWh savings to offset this.
You have no plans for solar or BESS
Without solar or BESS, the only way to benefit from E2 is shifting consumption to off-peak hours. If you cannot shift loads, E1 is safer.
Critical: Run the numbers before switching
E2 MD charge (RM97.06/kW) is 2.7x higher than E1 (RM35.50/kW). For a 500kW MD site, this is an extra RM30,780/month in MD alone. Your off-peak kWh savings must exceed this MD premium to benefit from E2. Use our calculator above to model your specific scenario.
Switching to E2 TOU is free. TNB does the meter upgrade at no cost. The process typically takes 2–4 weeks from application to activation.
Contact your local TNB Commercial office and request 30-minute interval consumption data for the past 3 months. This shows your actual peak vs off-peak split.
Calculate what percentage of your monthly kWh falls in peak hours (8am–10pm Mon–Sat) vs off-peak. Use the calculator above to model your potential savings.
Compare your projected E2 bill (peak kWh savings minus the MD premium) against your current E1 bill. Ensure savings are positive before applying.
Submit a tariff change request at your TNB Commercial office or through the myTNB portal. The tariff switch is free of charge.
TNB will schedule a meter replacement appointment. The new TOU-capable smart meter records 30-minute interval data and enables accurate peak/off-peak billing. Installation takes 2–4 weeks.
Let Trexon handle the TOU analysis for you
We request your TNB interval data, model your peak/off-peak split, and recommend the optimal tariff — free of charge.
Trexon engineers will remotely analyse your TNB bills, calculate your peak/off-peak split, and prepare an initial solar + BESS design that maximises your E2 TOU savings. Free remote assessment, no commitment.