Solar Incentives & Government Benefits Malaysia 2026

No. The SolaRIS (Solar Residential Industry Scheme) rebate of RM4,000 ended in April 2025. All quota under the programme has been fully allocated. If you are a residential customer, the current recommended pathway is Solar ATAP combined with for financing.

Solar ATAP replaced NEM 3.0 (Net Energy Metering) as the primary residential solar export programme. Unlike NEM 3.0 which had quota limits and waiting lists, Solar ATAP has no published quota ceiling. Excess solar energy is exported to TNB at the System Marginal Price (SMP) rate rather than a fixed feed-in tariff.

Yes, GITA (Green Investment Tax Allowance) is active until December 2026 for qualifying solar investments. It provides a 60% allowance on qualifying capital expenditure (capex) against statutory income, capped at 70% of your company's statutory income per year. Applications must be submitted to MIDA before commissioning. Businesses should engage a tax advisor to structure claims correctly.

GTFS 5.0 (Green Technology Financing Scheme 5.0) provides a government guarantee of up to 80% on loans taken for green technology projects including solar. This substantially reduces the risk premium banks charge, resulting in lower interest rates for qualifying borrowers. The scheme is administered by the Malaysian Green Technology and Climate Change Corporation (MGTC) and is active until December 2026.

No. Solar panels are not currently on KWSP's approved home improvement withdrawal list, so EPF Account 2 cannot be used to pay for a residential solar installation. The good news: green bank loans from Maybank, CIMB, RHB, Public Bank and BSN offer rates from 3.5% p.a. with tenures up to 10 years — often a better financial choice than touching your retirement fund anyway. Trexon handles all the green loan paperwork.

For commercial and industrial businesses, GITA combined with GTFS 5.0 financing typically delivers the highest total value. GITA provides a 60% tax allowance on the full capex — potentially saving hundreds of thousands in corporate tax — while GTFS lowers financing costs. For very large corporations without a suitable roof, the CGPP Virtual PPA programme avoids capex entirely while delivering RECs for ESG reporting.

Solar ATAP registration is handled as part of the TNB grid connection application process, which your solar installer manages. You do not apply separately to a government agency. Once your system passes inspection and is commissioned, TNB registers your meter for Solar ATAP export metering automatically. Ask your installer to confirm ATAP registration is included in the scope of work.

Yes. Factories and industrial users qualify for GITA (60% tax allowance on capex), GTFS 5.0 (government-guaranteed green loans), and can participate in CGPP if they lack roof space. Additionally, large industrial consumers on TNB C1/C2/C3 tariffs can explore Physical PPA arrangements with Trexon — zero capex with immediate electricity cost savings. SARE (Sustainable Alternative Renewable Energy) is a separate programme for large industrial RE procurement.