Malaysia Solar Incentives 2026:
Every Scheme Explained

Solar ATAP (Solar Accelerated Transition Action Programme) is Malaysia's solar export-credit 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 (RM0.2703/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 household whose usage matches the system size, ATAP typically cuts the monthly TNB bill by about 70% (Trexon's savings engine; your own bill decides the real figure). The key to maximising savings under ATAP is self-consumption — every kWh consumed directly saves the avoidable tariff rate (RM0.4443/kWh, or RM0.5443 above 1,500 kWh a month), while exported kWh earn the Energy Charge rate (RM0.2703/kWh). Systems sized for 70–80% self-consumption deliver the best ROI.

Who Can Apply

• Residential premises connected to TNB in Peninsular Malaysia
• Commercial and industrial premises on applicable tariff bands
• New installations and systems converting from NEM 3.0
• System size: residential typically 5.58–19.84 kWp, within the 5 kWac single-phase / 15 kWac three-phase caps

Application Process

1. Engage a SEDA-registered solar contractor (like Trexon)
2. Submit system design and equipment specs to SEDA
3. SEDA approves and issues the ATAP quota allocation
4. Install system and commission with TNB bidirectional meter
5. TNB activates export crediting — credits appear on monthly bill

Financial Impact

On Trexon's catalogue, residential payback runs from about 3.1 to 9.5 years depending on system size and your bill (RM15,999 to RM40,499 against RM140 to RM960 a month saved), over a 25-year panel lifespan. Commercial systems with higher daytime consumption pay back sooner: about 6.4 years on Medium Voltage and 3.8 years on Low Voltage (illustrative, energy charge only, RM2,400/kWp before SST).

The Green Investment Tax Allowance (GITA) is a major corporate solar incentive available in Malaysia. Under GITA, companies that invest in qualifying green technology assets — including solar PV systems — receive an Investment Tax Allowance (ITA) on the capital expenditure incurred: 60% for standalone solar PV (Tier 2), or up to 100% for BESS, EV charging infrastructure and green buildings (Tier 1). 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 Tier 2 effectively allows 60% of that RM500,000 to be deducted from taxable income over successive years — delivering a direct tax saving of RM72,000 for companies at the 24% corporate tax rate, on top of the ongoing electricity cost savings.

What Qualifies Under GITA

• Solar PV systems (panels, inverters, mounting structures, wiring)
• Battery energy storage systems (BESS) installed with solar
• Energy management systems and smart meters
• Green buildings certified under GreenRE, GBI, or MyCREST
• EV charging infrastructure installed at business premises
• Biomass, biogas, and other renewable energy equipment

Who Can Apply

• Malaysian-incorporated companies (Sdn Bhd, Bhd)
• Companies that own and operate the green technology asset (not lease)
• Both new installations and qualifying upgrades to existing systems
• Application is made to MGTC after the asset is commissioned, and the application must be submitted by December 31, 2026

How to Apply

1. Install and commission the asset (capex incurred between 1 January 2024 and 31 December 2026)
2. Submit the GITA (Asset) application to MGTC, which verifies the asset and lists it on MyHIJAU
3. Subject to MGTC verification, the allowable allowance amount is confirmed
4. Claim the ITA in your corporate tax return (Form C) annually
5. Carry forward unused allowances to subsequent years

GITA + GTFS Stack

GITA is most powerful when combined with GTFS green financing (see below). Use a GTFS-guaranteed loan to fund the capital outlay (the bank sets the rate; GTFS provides no interest rebate), then claim GITA on the qualifying project cost.

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 70% of statutory income (per MIDA, applications by 31 December 2026) 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 the 70% GITE exemption (for the service provider or lessor, not the buyer of a system) — making the leasing model commercially viable and allowing building owners to go solar with little capital investment of their own.

Qualifying Green Technology Services

• Solar PV system leasing and Power Purchase Agreements (PPAs)
• Operation and maintenance of renewable energy systems
• Energy auditing and efficiency advisory services
• Green building design, commissioning, and certification support
• EV charging network operation

Key Conditions

• Company must be verified by the Ministry of Natural Resources and Environmental Sustainability
• GITE application submitted to MIDA by December 31, 2026
• Exemption period: up to 10 years from first year of income
• Separate applications required for each qualifying project or service line

GITE applies to the solar company that leases the system or sells the power, not to the building owner. Trexon does not offer a PPA or a solar lease directly; for owning your system, see GITA Asset above.

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 works on the financing side. The government guarantees 60–80% of the green-technology portion of a company's bank loan, which lowers the risk for lending banks. GTFS 5.0 provides no interest rebate, is for companies only (not homeowners), and is open until 31 December 2026 or until the RM1 billion allocation is used. For SMEs — which often struggle to secure asset-backed financing for intangible investments — GTFS is a game-changer.

Key Terms

Participating Banks

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.

How to Access GTFS

1. Obtain a MGTC Green Technology Verification for your solar project
2. Apply through any participating bank, citing GTFS 5.0 as the funding scheme
3. Bank submits guarantee application to CGC (Credit Guarantee Corporation)
4. Loan approved on the bank's own terms, with the government guarantee in place
5. Draw down funds to pay your solar contractor directly

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.

Who CRESS Is For

• Large corporations with annual electricity consumption exceeding 1 GWh
• Multinational companies with RE100 or Science Based Targets (SBTi) commitments
• Export-oriented manufacturers facing supply chain sustainability pressure
• Companies building ESG credentials for investors and customers

Key Benefits

• Renewable Energy Certificates (RECs) for verified green electricity claims
• Long-term price stability vs. volatile fossil fuel tariffs
• Supports Scope 2 emission reductions under GHG Protocol
• Access to dedicated renewable capacity — not just carbon offsets

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.

Eligibility Requirements

• Sarawak residential or commercial premises connected to SESCo grid
• Property must be owned (not rented) for residential claims
• System size: up to 10 kWac for residential premises
• Installation through a Sarawak Energy-registered contractor (Trexon works through local partners)
• Subsidy form submitted to Sarawak Energy within 7 days of signing your NEM contract

How Sarawak NEM Works

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.

Budget 2026 announced a carbon tax for the iron, steel and energy sectors. It was put on hold in April 2026 and no rate has been set. Malaysia's carbon market (Bursa Carbon Exchange) is voluntary.

If a carbon price is introduced, factories that cut their grid electricity use would reduce their exposure. Rooftop solar reduces grid electricity consumption, the main source of Scope 2 emissions for most manufacturers, whatever the rate turns out to be.

Sectors Announced

• Iron and steel manufacturing
• Energy sector — power generation companies
• Separate from the above: export-oriented manufacturers subject to EU CBAM (Carbon Border Adjustment Mechanism)

Solar and Carbon Exposure

Onsite solar generation directly reduces grid electricity consumption. Every kWh generated and used on-site lowers your Scope 2 emissions and your electricity bill, with or without a carbon tax.

Companies can also combine solar with GITA Asset (60% of qualifying capex, set off against up to 70% of statutory income; commission and submit to MGTC by 31 December 2026), GTFS 5.0 and CRESS to build a decarbonisation strategy that 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 supplying your own 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.

Eligibility

• Malaysian individual taxpayer (not companies — this is personal income tax)
• Purchase and install a certified home EV charger at residential premises
• Charger must be purchased new (not second-hand)
• Claim via annual tax return (e-BE/BE form under Special Tax Relief)