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Get QuoteTNB Commercial & Industrial Tariff Malaysia 2026
C1, C2, E1, E2, E3 Rates Explained
Built for Malaysian business owners — full breakdown of TNB commercial (C1/C2) and industrial (E1/E2/E3) tariff rates for 2026, plus maximum demand (MD), kVARh reactive-power penalty, and ICPT surcharge. See exactly which line items solar eliminates first.
Looking for residential tariff (Tariff A) instead? See our domestic tariff guide.
Understanding the TNB Tariff Structure
Tenaga Nasional Berhad (TNB) charges electricity using a tiered progressive block rate system for domestic consumers. This means your tarif per kWh increases as your monthly consumption rises — lower users pay less per unit, while high-consumption households pay significantly more in upper blocks.
For Peninsular Malaysia, the domestic tariff falls under Tariff A. Commercial users are billed under Tariff B or C, and industrial users under Tariff D, E, or F depending on voltage and consumption levels. Each category has its own rate schedule and minimum charges.
On top of base tariff rates, TNB applies the ICPT (Imbalance Cost Pass-Through) surcharge every six months. This adjustment reflects changes in fuel and generation costs and is reviewed by the Suruhanjaya Tenaga (Energy Commission Malaysia).
Note: Sabah (SESB) and Sarawak (SESCO) have separate tariff schedules. All rates on this page apply to Peninsular Malaysia under TNB.
TNB Domestic Residential Tariff 2026 (Tariff A)
Tarif TNB domestik semasa untuk rumah kediaman di Semenanjung Malaysia. Kadar blok progresif — bil elektrik naik dengan penggunaan yang lebih tinggi.
| Block | Monthly Usage (kWh) | Base Rate (sen/kWh) | + ICPT (sen/kWh) | Effective Rate |
|---|---|---|---|---|
| Block 1 | 1 – 200 kWh | 21.80 | 3.70 | 25.50 sen/kWh |
| Block 2 | 201 – 300 kWh | 33.40 | 3.70 | 37.10 sen/kWh |
| Block 3 | 301 – 600 kWh | 51.60 | 3.70 | 55.30 sen/kWh |
| Block 4 | 601 – 900 kWh | 54.60 | 3.70 | 58.30 sen/kWh |
| Block 5 | 901 kWh and above | 57.10 | 3.70 | 60.80 sen/kWh |
Minimum monthly charge: RM3.00. ICPT surcharge of 3.70 sen/kWh applies for domestic consumers (Jan–Jun 2026 gazette period). Service tax applies to commercial accounts. Verify at tnb.com.my.
What Is the ICPT Surcharge?
ICPT (Imbalance Cost Pass-Through) is a fuel cost adjustment reviewed every 6 months. For domestic consumers, the current surcharge is 3.70 sen/kWh (Jan–Jun 2026). Commercial and industrial users face a higher ICPT rate. The surcharge appears as a separate line item on your TNB bill. It is reviewed by the Energy Commission and can be positive (surcharge) or negative (rebate) depending on global fuel prices.
Commercial & Industrial Tariff Rates 2026
Businesses on Tariff B, C, or E pay energy rates plus maximum demand charges based on their peak consumption in a billing period.
| Tariff | Category | Energy Rate | MD Charge | Min. Charge |
|---|---|---|---|---|
| Tariff B | Small commercial (low voltage) | 43.50 sen/kWh | N/A | RM7.20/month |
| Tariff C1 | Medium commercial (low voltage, MD) | 36.50 sen/kWh | RM30.30/kW | RM600/month |
| Tariff C2 | Large commercial (medium voltage) | 36.50 sen/kWh | RM29.60/kW | RM600/month |
| Tariff E1 | Industrial (medium voltage, MD) | 33.70 sen/kWh | RM29.60/kW | RM600/month |
| Tariff E2 | Industrial (medium voltage, TOU) | Peak / off-peak | RM37.00/kW | RM600/month |
| Tariff E3 | Industrial (high voltage, TOU) | Peak / off-peak | RM35.00/kW | RM600/month |
Indicative rates for Peninsular Malaysia under RP4 (2025–2027). Maximum Demand (MD) charges are based on highest 30-minute peak demand each billing cycle. ICPT applies additionally. E2/E3 Time-of-Use rates vary by peak and off-peak windows — see our TOU Tariff Guide.
Maximum Demand charges explained: Commercial and industrial users on Tariff C and E pay a monthly kW charge based on their peak 30-minute consumption during the billing period. Solar panels directly reduce this peak demand — for a business drawing 200kW at peak, a solar system that shaves 50kW of that demand saves approximately RM1,480–1,850/month in MD charges alone.
How Solar Reduces Your TNB Bill — Real Examples
Because TNB uses progressive block rates, solar savings compound as your bill gets larger. The higher your usage, the more you save per kWh with solar.
Why Progressive Blocks Amplify Solar Savings
Enter your latest TNB bill amount — takes 60 seconds
Solar ATAP & NEM: How Export Credits Work
Under Malaysia’s Net Energy Metering (NEM) scheme — branded as Solar ATAP for residential users — surplus solar energy exported to the TNB grid earns credits on your bil elektrik. This means you generate electricity during the day, export what you do not use, and receive a credit that reduces your nighttime grid consumption charge.
Key rules to understand for 2026: credits are not a 1:1 cash payment— they offset your bill within the same billing cycle and do not carry forward. The scheme runs on a 10-year contract. Your system must be installed and commissioned by a registered SEDA contractor, and capacity is subject to individual state quotas.
For most households, self-consumption delivers far more value than export credits. A well-sized system designed to maximise self-consumption (offsetting your Block 3–5 tariff units) delivers the fastest payback and highest lifetime savings.
Learn more: The Solar ATAP 2026 guide covers quota allocation, GP/ST approval process, and NEM system sizing rules in detail.
What Does a Solar System Cost vs TNB Savings?
At 2026 TNB tariff rates, residential solar systems typically pay back in 5–8 years and generate free electricity for 20+ years after that.
Factors That Affect Your Solar Payback in Malaysia
Soalan Lazim — TNB Tariff 2026 FAQ
Common questions about TNB tariff rates, ICPT, and how solar reduces your bil elektrik.
What is the current TNB domestic tariff rate in 2026?
TNB domestic (Tariff A) uses a tiered block rate structure. Block 1 (1–200 kWh): 21.80 sen/kWh. Block 2 (201–300 kWh): 33.40 sen/kWh. Block 3 (301–600 kWh): 51.60 sen/kWh. Block 4 (601–900 kWh): 54.60 sen/kWh. Block 5 (901 kWh and above): 57.10 sen/kWh. A minimum monthly charge of RM3.00 applies. These rates apply to Peninsular Malaysia under Tenaga Nasional Berhad.
What is ICPT and how much does it add to my bil elektrik?
ICPT (Imbalance Cost Pass-Through) is a surcharge or rebate applied every six months to reflect changes in fuel and generation costs. For the current period (January–June 2026), domestic consumers pay an additional 3.70 sen/kWh surcharge on top of base tariff rates. Commercial and industrial users face a higher surcharge. ICPT is reviewed by the Energy Commission and can change — check tnb.com.my for the latest gazette.
How does TNB calculate my monthly electricity bill?
TNB applies block rates progressively — the first 200 kWh are charged at 21.80 sen/kWh, the next 100 kWh at 33.40 sen/kWh, and so on through higher blocks. The ICPT surcharge of 3.70 sen/kWh is then applied to your total consumption. Service tax (8%) and any applicable rebates are added to arrive at the final amount payable.
How much can solar reduce my TNB bill?
Solar panels generate electricity during daylight hours and directly offset the kWh you would otherwise buy from TNB. Because Malaysian residential tariffs use progressive block rates, solar has a multiplied effect — every kWh of solar self-consumption reduces usage from the most expensive blocks first. A well-sized system typically reduces a RM400–800 monthly bill by 50–80%.
Does the tarif TNB 2026 include NEM solar export credits?
NEM (Net Energy Metering) allows you to export surplus solar energy back to the TNB grid. Under Solar ATAP (Residential NEM), credits are applied to your bill at a rate set by the scheme — currently one-way displacement (not 1:1 cash credit). Exported units offset your monthly consumption, reducing the amount you owe TNB. Credits do not carry forward beyond the billing cycle.
Are TNB tariff rates the same in Sabah and Sarawak?
No. Sabah and Labuan are served by SESB (Sabah Electricity Sdn Bhd) with its own tariff schedule. Sarawak is served by SESCO (Sarawak Energy). Only Peninsular Malaysia and Putrajaya fall under the TNB Tariff A–F structure described in this guide. Rates and block thresholds differ across regions.
Will TNB tariff rates increase after 2026?
TNB tariffs are reviewed under the Incentive-Based Regulation (IBR) framework every regulatory period (RP). Peninsular Malaysia is currently in RP4 (2025–2027). Rate changes are gazetted by the Energy Commission and announced in advance. Installing solar now locks in your savings against future tariff increases — a key reason Malaysian homeowners and businesses are going solar in 2026.
Beat the TNB Tariff with Solar
Every month you delay is another month at Block 3, 4, or 5 rates. Use our calculator to see exactly how much a solar system saves on your current TNB bill — and get a no-obligation quote from our team.
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