SELCO Scheme

SELCO Scheme

☀️ What is SELCO (Self-Consumption)?

SELCO stands for Self-Consumption Solar PV System, also called the Self-Consumption Scheme under SEDA Malaysia (Sustainable Energy Development Authority) and Suruhanjaya Tenaga (Energy Commission).

It allows consumers to generate their own solar electricity using on-site solar PV systems and consume it directlywithout exporting the excess energy to the grid.


⚙️ How SELCO Works

  • The solar PV system installed under SELCO is connected to the user’s internal electrical network, not to export power to Tenaga Nasional Berhad (TNB)’s grid.

  • Any energy generated by solar is used instantly by your building’s electrical loads.

  • If your solar generation is less than your consumption, the grid supplies the rest.

  • If your solar generation is more than your consumption, the extra energy is wasted (or curtailed) since exporting to TNB is not allowed under SELCO.

In short:

You produce your own electricity and use it for yourself  "no selling, no exporting, just saving on your TNB bill"


🏢 Who Uses SELCO

The SELCO scheme is designed for:

  • Commercial and Industrial (C&I) users such as factories, warehouses, and retail buildings

  • Government and institutional buildings

  • Residential properties (though less common for high capacity systems)


💰 Benefits of SELCO

Save electricity cost – Reduce grid energy usage by consuming your own solar power
Simpler application – Fewer regulatory processes than Net Energy Metering (NEM)
Energy independence – Less reliance on grid electricity
Supports green initiatives – Lower carbon footprint