Malaysia Launches Solar ATAP Program After Net Metering Scheme Ends

Following the conclusion of Malaysia’s Net Energy Metering (NEM) program in June 2025, the government has introduced the Solar ATAP scheme to sustain the rollout of rooftop solar photovoltaic (PV) systems across the commercial and industrial (C&I) and residential sectors.

The new program came into effect on Jan. 1, 2026, according to Malaysia’s Sustainable Energy Development Authority (SEDA).

“The program provides a cost-neutral and transparent mechanism for consumers to install and operate solar photovoltaic systems for self-consumption, while allowing surplus energy to be exported to the grid,” SEDA said in a statement.

Program Design and Capacity Limits

By allowing excess electricity generated by rooftop PV systems to be exported to the grid as an energy offset, Solar ATAP preserves the core principles of the former NEM framework.

For non-domestic consumers, the maximum allowable installation capacity is capped at 100% of the consumer’s maximum demand or 1 MW, whichever is lower. For domestic consumers, system sizes are limited to between 5 kW and 15 kW, depending on eligibility criteria.

Once a Solar ATAP contract commences, it will remain valid for 10 years. After the contract period expires, the solar PV system may continue to operate strictly for self-consumption purposes, with no offset or rollover permitted for any excess electricity exported to the grid.

Allocation Mechanism and Eligible Installations

Capacity under the Solar ATAP scheme will be allocated on a first-come, first-served basis, with the government determining the opening and closing dates of each application window.

While the program primarily covers rooftop PV installations, additional applications such as solar carparks and covered pedestrian walkways may also be eligible, provided they are located within the same premises as the applicant.

The government expects the new guidelines to encourage broader participation in Malaysia’s renewable energy deployment while enhancing fairness and transparency across the solar industry.

Financing Options and Participation Requirements

Consumers may participate in Solar ATAP through an outright purchase of the solar PV system, financed via cash payments, personal loans, or credit cards. Alternatively, applicants may opt to procure solar electricity through a power purchase agreement (PPA) with solar investors, enter into a solar leasing arrangement, or adopt a hybrid model, as offered by Registered Solar PV Investors (RPVIs).

According to SEDA, applicants must meet specific eligibility requirements. Participants must be registered electricity consumers of Tenaga Nasional Berhad (TNB), and only consumers who are not currently registered under the Self-Consumption (SelCo) or NEM programs are eligible to apply.

During the supply application process, domestic consumers are required to conduct a Connection Assessment Study before submitting their Solar ATAP application.

Consumers who are also registered as electricity generators—including, but not limited to, co-generators, back-feed systems, or TNB accounts registered under tenant sub-meters in multi-tenant schemes—are not eligible to participate in the Solar ATAP program.