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Get QuoteSolar Incentives Malaysia 2026:
Grants, Tax Relief & 0% Financing
Every solar rebate, grant, and financing scheme available in Malaysia right now — explained in plain English. From the GITA 60% tax allowance to zero CAPEX PPA, here is exactly what you qualify for and how to claim it.
8 Active Incentives You Can Claim in 2026
Solar ATAP
Grid export credits
GITA 60%
Corporate tax relief
Up to RM500K
GTFS 2%
Interest subsidy
Zero CAPEX PPA
No upfront cost
SEDA Licensing
Grid connection
Bank 0% Plans
CIMB, Maybank, RHB
GITE (SMEs)
Tax exemption
Solar ATAP Scheme (Replaced NEM 3.0)
Effective January 1, 2026, the Energy Commission replaced the Net Energy Metering (NEM 3.0) programme with the Solar Accelerated Transition Action Programme (ATAP), governed by Guideline GP/ST/No. 60/2025. This is the foundational framework for all grid-connected solar in Peninsular Malaysia and Sabah.
3 Critical Differences from NEM 3.0
- Credits are NOT 1:1 — Non-domestic consumers are credited at the Average System Marginal Price (SMP), the wholesale rate (~RM 0.23/kWh), not the full retail rate.
- Credits are NOT carried forward — Unutilised export credits expire at the end of each billing period. Oversizing your system throws money away.
- 10-year contract — ATAP is a fixed-term agreement. Ensure your roof, system, and business plans align with this commitment.
Residential (Domestic) Eligibility
- TNB residential account holder (Tariff A)
- Maximum system size: 5kW (single phase) or 15kW (three phase)
- Export credits applied at full energy charge rate
- SEDA-registered contractor required
- 10-year ATAP agreement
Commercial / Industrial Eligibility
- Commercial or industrial TNB account (Tariff B, C, D, E)
- Maximum system size: 100% of Maximum Demand (MD), hard cap 1MW
- Export credits at Average SMP rate (~RM 0.23/kWh)
- SEDA Type Approval and inspection required
- 10-year ATAP agreement
Green Investment Tax Allowance (GITA)
GITA is a 60% Investment Tax Allowance on qualifying capital expenditure for green technology assets, including solar PV systems. It is administered by MIDA (Malaysian Investment Development Authority) and is the most financially significant tax incentive for businesses installing solar in 2026.
Worked Example: RM800,000 Industrial Solar System
RM800,000
System Cost
RM480,000
60% GITA Allowance
× 24%
24% Corp Tax Rate
RM115,200
Tax Saved
GITA Eligibility
- Malaysian-incorporated company (Sdn Bhd or Bhd)
- Solar system installed and commissioned in Malaysia
- Minimum 70% local component or qualifying green tech asset
- MIDA application submitted BEFORE installation begins
- Deadline: December 31, 2026 (application submission)
- System must be in operation within 3 years of approval
GITA for SMEs: GITE Variant
SMEs with annual revenue below RM50 million may be eligible for the Green Income Tax Exemption (GITE)— a 100% income tax exemption for up to 10 years on income derived from green technology activities. This is structured differently from GITA and suits solar companies or ESCOs more than end-users. Consult MIDA directly for SME applicability.
How to Apply
- Register on MIDA's Investment Malaysia portal (mida.gov.my)
- Submit application with project details and cost breakdown
- Receive approval letter before commencing installation
- Install, commission, and submit Form E (utilization report)
Green Bank Loans for Solar
A common misconception: many Malaysians believe they can withdraw from EPF (KWSP) Account 2 to pay for solar panels. Unfortunately, this is not the case — solar panels are not currently on KWSP's approved home improvement withdrawal list.
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. Monthly instalments are typically lower than your TNB bill savings, meaning a financed system is cash-flow positive from day one — while your EPF keeps compounding in the background at ~5.5% p.a.
From 3.5%
Interest Rate
Per annum, green loan rate
10 years
Maximum Tenure
Matches panel warranty
7–14 days
Processing Time
Most banks
Eligibility Requirements
- Malaysian citizen or permanent resident
- Clean CCRIS record (no active defaults)
- Minimum monthly income RM3,000 (salaried) or 2 years tax returns (self-employed)
- Property in your name (or spouse/immediate family)
- Solar installer must be SEDA-registered (Trexon qualifies)
- Installation quotation required for loan application
How to Apply
- 1Request a detailed quotation from Trexon (free site survey)
- 2Choose your preferred bank (Maybank, CIMB, RHB, Public Bank, BSN)
- 3Trexon prepares the loan application paperwork for you
- 4Submit to bank — approval typically 7–14 working days
- 5Bank disburses funds directly to the installer after approval
Green Technology Financing Scheme (GTFS)
GTFS is a government interest rate subsidy of 2% per annum on qualifying green technology loans, administered through MGTC (Malaysia Green Technology and Climate Change Corporation) via participating banks. It dramatically reduces the effective cost of financing a solar installation through a bank loan.
How the 2% Subsidy Works in Practice
Without GTFS: A RM300,000 solar loan at 5.5% base rate over 7 years = RM61,200 in interest.
With GTFS: The same loan at 3.5% effective rate = RM39,200 in interest. You save RM22,000.
Participating Banks:
GTFS Eligibility
- Malaysian-registered company or individual
- Solar system must be listed on MyHIJAU Directory
- Minimum loan amount: RM50,000
- Maximum loan amount: RM100 million
- Loan tenure up to 15 years
- MGTC endorsement required before bank application
Application Steps
- 1Confirm solar product is listed on MyHIJAU (myhijau.gov.my)
- 2Submit GTFS application to MGTC for green endorsement
- 3Receive MGTC endorsement letter
- 4Present endorsement to participating bank for loan application
- 5Bank processes loan at subsidised rate
SEDA Licensing & Grid Connection
SEDA (Sustainable Energy Development Authority Malaysia) is the statutory body under the Ministry of Energy Transition that administers Solar ATAP applications and certifies Photovoltaic System Contractors (PVSCs). Without a SEDA-registered installer, your solar system cannot be connected to the TNB grid and will not be eligible for any incentive.
PVSC Registration
Your installer must hold a valid SEDA PVSC licence. Ask for their licence number before signing any contract.
SEDA Application
The installer submits the ATAP application to SEDA on your behalf. Approval is required before TNB can connect the system.
TNB Grid Inspection
After installation, TNB performs a technical inspection. A SEDA-issued Renewable Energy Approval Letter is required for this step.
Zero CAPEX Solar: PPA & Rental Models
Zero CAPEX solar eliminates the upfront cost entirely. You get solar generation on your building with no purchase required. Two common structures exist in Malaysia: the Power Purchase Agreement (PPA) and the Solar Rental / Leasing model. Trexon offers both for qualifying commercial and industrial properties.
Power Purchase Agreement (PPA)
- Solar company installs and owns the system on your roof
- You buy electricity at a fixed discounted rate (typically 10–20% below TNB tariff)
- Contract period: 15–25 years
- Maintenance and insurance covered by installer
- Option to buy out the system at market value mid-contract
Best for: businesses wanting guaranteed savings with zero financial risk
Solar Rental / Leasing
- Pay a fixed monthly rental for use of the solar system
- All electricity generated offsets your TNB bill directly
- No ownership — no ATAP/GITA eligibility in this structure
- Shorter contracts available (5–10 years)
- Early termination penalties apply
Best for: SMEs that cannot access GITA and want predictable monthly costs
Bank 0% Instalment Plans
Several major Malaysian banks offer 0% interest instalment plans for solar system purchases made with their credit cards or personal financing products. These plans allow you to split the cost into 12–60 monthly payments with no interest charges, provided you meet the minimum purchase amount and use an eligible card.
| Bank | Plan Type | Tenure | Min Purchase | Interest |
|---|---|---|---|---|
| CIMB | CIMB Instalment Plan | Up to 60 months | RM500 | 0% |
| Maybank | Maybank EzyPay | Up to 36 months | RM500 | 0% |
| RHB | RHB Easy Instalment | Up to 24 months | RM500 | 0% |
| Public Bank | PB EasiPay | Up to 24 months | RM300 | 0% |
| Hong Leong | HLB Instalment Plan | Up to 36 months | RM500 | 0% |
| OCBC | OCBC FlexiPay | Up to 24 months | RM500 | 0% |
Rates and tenures are subject to change. Confirm current terms with your bank or speak to a Trexon financing consultant who can structure the optimal payment plan for your situation.
All Solar Incentives Malaysia 2026
Quick reference comparison of every scheme — who qualifies, how much you save, and where to apply.
| Incentive | Who It's For | Benefit | Max Value | Apply Via |
|---|---|---|---|---|
| Solar ATAP | Homeowners + Businesses | Bill offset credits for exported energy | Varies by usage | SEDA / Your installer |
| GITA 60% | Malaysian companies (Sdn Bhd / Bhd) | 60% investment tax allowance on capex | RM115,200+ on RM800K system | MIDA (mida.gov.my) |
| GITE | SMEs (revenue below RM50M) | 100% income tax exemption, up to 10 years | Full tax exemption | MIDA (mida.gov.my) |
| Green Bank Loan | Malaysian homeowners | Rates from 3.5% p.a., tenures up to 10 years | Up to system cost | Maybank, CIMB, RHB, Public Bank, BSN |
| GTFS 2% Subsidy | All businesses / individuals | 2% interest rate subsidy on green loan | RM22,000+ on RM300K loan | MGTC + participating bank |
| Zero CAPEX PPA | Commercial / industrial buildings | Discounted electricity, zero upfront | 10–20% below TNB tariff | Trexon Energy |
| Bank 0% Instalment | Credit card holders | Split cost with zero interest | Up to 60 months at 0% | CIMB / Maybank / RHB / Public Bank |
Frequently Asked Questions
The most common questions about Malaysian solar incentives, answered clearly.
What is the biggest solar incentive in Malaysia in 2026?
Can I use EPF (KWSP) to pay for solar panels?
Is the Solar ATAP credit rate the same as NEM 3.0?
What is GTFS and how does the 2% interest subsidy work?
What does zero CAPEX solar mean? Is there a catch?
Do I need a SEDA licence to install solar?
Can a company claim both GITA and GTFS at the same time?
Find out exactly which incentives you qualify for.
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