The New Era of Solar: Everything You Need to Know About Malaysia’s Solar ATAP Scheme (2026)

The New Era of Solar: Everything You Need to Know About Malaysia’s Solar ATAP Scheme (2026)

Introduction As Malaysia accelerates its transition toward renewable energy, the landscape for homeowners and business owners is evolving. Effective January 1, 2026, the Energy Commission is introducing the Solar Accelerated Transition Action Programme (Solar ATAP).
Designed to encourage self-consumption while maintaining a fair electricity ecosystem, Solar ATAP offers a new way to offset your electricity bills. Whether you are a homeowner or running a commercial facility, here is what this new guideline means for you.
1. What is Solar ATAP?
Solar ATAP is a mechanism that allows consumers to install Solar Photovoltaic (PV) systems primarily for their own use. Unlike previous schemes, Solar ATAP is designed to be "cost-neutral," ensuring fairness across the electricity supply industry while still rewarding you for going green.
Under this programme, you can generate your own electricity and export any surplus energy back to the grid in exchange for bill credits.
2. How Much Solar Can You Install?
One of the biggest updates in Solar ATAP is the flexibility in system sizing.
  • For Businesses (Non-Domestic): You can now install a solar system capacity of up to 100% of your Maximum Demand, capped at 1MW. This allows businesses to maximize their roof space to cover their actual peak usage.
  • For Homeowners (Domestic): The standard limits are 5kW for single-phase and 15kW for three-phase homes. However, you can apply for a larger system subject to a technical check by TNB.
3. How the Bill Credits Work
The mechanism for earning credits for exported energy has changed. Under Solar ATAP, the value of your exported energy depends on your tariff category:
  • Residential Homes: Your exported energy is credited based on the Energy Charge rate. This helps offset your consumption directly.
  • Commercial & Industrial: Your exported energy is valued at the Average SMP (System Marginal Price). This is a market-driven rate determined by the New Enhanced Dispatch Arrangement (NEDA).
Note: Credits can offset your electricity usage, but they cannot be used to offset the Automatic Fuel Adjustment (AFA) charges.
4. Who Is Eligible?
Solar ATAP is available to any consumer who:
  • Does not currently have a solar PV installation.
  • Is not currently participating in the NEM programme.
  • Note: If you are currently on NEM, you may switch to Solar ATAP by terminating your existing contract and adhering to the new guidelines.
5. The Application Process
Getting started involves a few technical steps to ensure grid safety:
  1. Assessment: Depending on your system size, you may need a Connection Confirmation Check (CCC) or a Connection Assessment Study (CAS).
  2. Application: Applications are submitted to the Implementing Agency (SEDA) with a fee of RM7.50 per kW.
  3. Contract: Once approved, you will sign a Solar ATAP contract valid for 10 years.
Conclusion
Solar ATAP represents a mature step forward for Malaysia's renewable energy sector. By allowing 100% capacity matching for businesses and providing a transparent credit mechanism, it encourages energy independence while stabilizing the grid.
Are you ready to transition to solar in 2026? Contact us today to perform a quick calculation on your potential savings under the new Solar ATAP guidelines.

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Source:
https://www.st.gov.my/contents/files/download/154/GUIDELINES%20FOR%20SOLAR%20ACCELERATED.pdf