From GITA tax allowances to GTFS financing and Sarawak subsidies — the only page that covers all 8 Malaysian solar incentives in one place.
Malaysia offers eight distinct solar incentive programmes in 2026 — but most homeowners and businesses only know about one or two. This guide covers all of them: tax allowances, tax exemptions, government-guaranteed financing, direct subsidies, and compliance drivers that make solar even more financially compelling.
Use this table to quickly identify which schemes apply to you, then read the full section below for eligibility details and application steps.
| Scheme | Benefit | Expiry |
|---|---|---|
| Solar ATAP | Net billing at retail tariff rate | Ongoing |
| GITA | 100% Investment Tax Allowance on green capex | Dec 2026 |
| GITE | Green Income Tax Exemption (solar leasing) | Dec 2026 |
| GTFS 5.0 | RM1B government-guaranteed green financing | Dec 2026 |
| CRESS | Corporate renewable energy supply | Ongoing |
| Sarawak NEM Subsidy | RM8,000–12,000 per installation | 2026 |
| Carbon Tax | RM35–45/tonne (makes solar more competitive) | Starts 2026 |
| EV Charger Tax Relief | RM2,500 income tax relief | 2026 |
Eligibility requirements, application processes, and the financial numbers — for each scheme.
Solar ATAP (Solar Accelerated Transition Action Programme) is Malaysia's solar net-billing programme that replaced NEM 3.0 in January 2026. Under ATAP, excess solar energy exported to the grid is credited at the Energy Charge rate for domestic consumers (~RM0.218/kWh) or the Average SMP for non-domestic consumers (~RM0.25/kWh). While the export rate is lower than the old NEM 1:1 offset, self-consumed energy still saves at full tariff rates — making solar highly attractive.
For a typical 10kWp residential system, ATAP can reduce monthly TNB bills by 60–80%. The key to maximising savings under ATAP is self-consumption — every kWh consumed directly saves the full tariff rate (up to RM0.571/kWh), while exported kWh earn the Energy Charge rate (~RM0.218/kWh). Systems sized for 70–80% self-consumption deliver the best ROI.
With an average payback period of 5–7 years on a residential system and a 25-year panel lifespan, ATAP installations deliver ROI of 300–400% over the system lifetime. Commercial systems with higher daytime consumption can achieve payback in as little as 3–4 years.
Sarawak Note
The Green Investment Tax Allowance (GITA) is one of the most powerful corporate solar incentives available in Malaysia. Under GITA, companies that invest in qualifying green technology assets — including solar PV systems — receive a 100% Investment Tax Allowance (ITA) on the capital expenditure incurred. This allowance can be offset against up to 70% of statutory income in each assessment year, with the remaining balance carried forward indefinitely.
For a business investing RM500,000 in a rooftop solar system, GITA effectively allows the full RM500,000 to be deducted from taxable income over successive years — delivering a direct tax saving of RM120,000 for companies at the 24% corporate tax rate, on top of the ongoing electricity cost savings.
GITA is most powerful when combined with GTFS green financing (see below). Use GTFS to fund the capital outlay at subsidised interest rates, then claim GITA on the full project cost — effectively double-dipping on government support for the same investment. This combination can reduce the net effective cost of a commercial solar installation by 40–60%.
Deadline Alert
The Green Income Tax Exemption (GITE) is the sister incentive to GITA, designed for companies that provide green technology services rather than purchasing green assets themselves. Under GITE, qualifying companies receive an income tax exemption of up to 100% on statutory income derived from green technology services — including solar leasing, solar O&M, energy auditing, and green building consultancy.
GITE is particularly relevant to solar leasing models (also known as Zero CAPEX or Power Purchase Agreements), where a solar company owns the panels and sells electricity to the building owner. The solar company's income from these lease agreements can qualify for full income tax exemption under GITE — making the leasing model commercially viable and allowing building owners to go solar with no upfront investment.
For building owners interested in a zero-CAPEX solar solution, ask Trexon about our solar leasing programme — where the financial benefits of GITE flow through to competitive PPA pricing that can be lower than your current TNB tariff from day one.
The Green Technology Financing Scheme 5.0 (GTFS 5.0) is a government-backed loan guarantee programme administered by the Malaysia Green Technology and Climate Change Corporation (MGTC). The scheme allocates RM1 billion in government-guaranteed financing to help businesses access affordable loans for green technology investments including solar PV systems.
Unlike GITA (which provides tax relief), GTFS directly reduces the cost of capital. The government provides a 2% interest rate rebate and a 60% government guarantee on the loan principal, dramatically lowering the risk profile for lending banks and allowing them to offer more favourable terms to borrowers. For SMEs — which often struggle to secure asset-backed financing for intangible investments — GTFS is a game-changer.
Government Guarantee
60% of loan principal
Interest Rebate
2% per annum (government-funded)
Maximum Loan
RM50M (companies) / RM10M (SMEs)
Loan Tenure
Up to 10 years
Eligible Sectors
All sectors using green tech
Scheme Allocation
RM1 billion (GTFS 5.0)
GTFS 5.0 financing is channelled through approved partner banks and Development Financial Institutions (DFIs) including Maybank, CIMB, RHB, AmBank, Bank Islam, Bank Muamalat, Agro Bank, SME Bank, and EXIM Bank. Each bank sets their own credit assessment criteria, so it's worth comparing offers across institutions.
Stack GTFS + GITA for Maximum Benefit
The Corporate Renewable Energy Supply Scheme (CRESS) allows large electricity consumers to directly purchase renewable energy — including solar — to meet their sustainability targets and power purchase commitments. The scheme has attracted commitments totalling 1.3 GW of renewable capacity and RM3.5 billion in expected investment, making it one of the largest corporate green energy programmes in Southeast Asia.
Under CRESS, qualifying corporations can enter long-term Power Purchase Agreements (PPAs) with renewable energy generators. The renewable electricity is wheeled through TNB's grid to the corporate buyer's premises. This is distinct from rooftop solar — CRESS allows companies to source large volumes of renewable power even without suitable rooftop space, and to meet 100% renewable electricity targets across multiple facilities simultaneously.
For corporations that also own factory or warehouse rooftops, CRESS complements on-site solar perfectly — use rooftop ATAP for daytime self-consumption and CRESS to cover balance loads and night-time demand with verified green electricity.
Sarawak operates its own Net Energy Metering (NEM) programme administered by SESCo (Sarawak Energy Berhad), separate from SEDA's Solar ATAP programme on the peninsula. Sarawak residents benefit from SESCo's NEM framework, which provides bill credits for exported solar energy at rates comparable to Peninsular Malaysia. Sarawak also benefits from higher solar irradiance (averaging 4.8–5.2 kWh/m²/day) compared to the Peninsula.
For a typical 6–10kWp residential system, Sarawak solar payback periods are often competitive due to higher generation yields. SESCo's electricity tariffs differ from TNB's — consult a SESCo-registered contractor for current applicable export rates and ROI calculations specific to your location in Sarawak.
Sarawak operates its own Net Energy Metering programme administered by SESCo, separate from SEDA's ATAP programme on the peninsula. Export rates and billing structures differ slightly — consult with a SESCo-registered contractor for the current applicable rates in your area. SESCo's electricity tariffs are also structurally different from TNB's, which affects the ROI calculation for Sarawak installations.
Sarawak Solar Savings
Malaysia's Carbon Tax, effective from January 2026, imposes a levy of RM35–45 per tonne of CO2 equivalent on the iron and steel sector and energy-intensive industries. While technically a compliance cost rather than a direct solar incentive, carbon tax is the strongest market force making solar economically compelling for manufacturers — and savvy businesses are treating it as exactly that.
A factory consuming 5 million kWh annually from grid electricity (coal-heavy mix) generates approximately 3,000–4,000 tonnes of CO2e. At RM40/tonne, that is RM120,000–160,000 per year in carbon tax liability. A 1MWp rooftop solar system generating 1.4 million kWh annually eliminates roughly 900 tonnes of CO2e — saving RM36,000/year in carbon tax alone, stacked on top of the electricity cost savings.
Onsite solar generation directly reduces grid electricity consumption, which is the primary source of Scope 2 emissions for most manufacturers. Every kWh generated on-site reduces the carbon tax liability proportionally. For energy-intensive facilities, the carbon tax savings alone — before counting electricity cost reduction — can justify a significant portion of the solar investment ROI.
Companies subject to carbon tax can also combine solar with GITA (100% ITA), GTFS green financing, and CRESS to build a comprehensive decarbonisation strategy that satisfies regulators, reduces operating costs, and meets ESG investor requirements.
Under Malaysia's Budget 2025 and 2026 personal income tax incentives, individual taxpayers can claim up to RM2,500 income tax relief for the purchase and installation of a home EV charging unit. This relief is available from YA 2024 through YA 2026 and applies to any EV-certified home charger installed at your primary residence.
The smart play is to combine the EV charger tax relief with a home solar system. With Solar ATAP generating free daytime electricity and a home charger on a time-of-use tariff, EV owners can charge their vehicles at near-zero cost using surplus solar generation — effectively driving on sunlight while also claiming the RM2,500 tax relief on the charger hardware.
Select your profile to see the relevant schemes.
The real power is in stacking multiple schemes. Here are the optimal combinations by profile.
Trexon's advisors will map every available incentive to your specific situation — homeowner, SME, or large corporation — and show you the stacked financial impact before you commit to anything.
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Solar ATAP Malaysia 2026 Guide
Deep-dive on net billing rates, application, and ROI
Solar ATAP Programme
How Trexon handles your ATAP application end-to-end
Solar Financing Options
Zero-CAPEX, GTFS loans, and hire-purchase explained
Solar in Sarawak
Sarawak NEM + SESCo rates + local installation team
EV Charger Solutions
Home and commercial EV charging with tax relief
Commercial Solar
CRESS, GITA, and large-scale industrial solar