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 directly — without exporting the excess energy to the grid.
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"
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)
✅ 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
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