The Solar Accelerated Transition Action Program (Solar ATAP), in effect since January 1, 2026, aims to build on Malaysia’s previous efforts to maximize the use of rooftops for solar energy generation by incentivizing consumers to export excess generation to the grid. The capacity limit is set at 100% of maximum consumer demand, or 1 MW.
Following the end of Malaysia’s net metering program (NEM) in June 2025, the government launched the Solar ATAP to continue the rollout of solar energy on the country’s commercial, industrial and residential rooftops.
The new arrangement has been in effect since January 1, 2026.
“The program provides consumers with a cost-neutral and transparent mechanism to install and operate solar photovoltaic (PV) systems for their own use, while allowing excess energy to be exported to the grid,” Malaysia’s Sustainable Energy Development Authority (SEDA) said in a statement.
By allowing excess solar energy produced by rooftop PV system owners to be exported to the grid as energy offsets, the Solar ATAP upholds the core principles of the NEM.
The limit for the installation power of solar PV systems for non-domestic consumers is set at 100% of the maximum consumer demand, or 1 MW. For household consumers the limit varies between 5 kW and 15 kW.
Once the Solar ATAP contract commences, the term will last 10 years. After that, the system will be for self-consumption only and no compensation or rollover will be allowed for the excess energy that is exported.
Capacities are allocated on a first-come, first-served basis, and the government determines opening and closing dates.
Malaysia hopes the guidelines will promote broader participation in renewable energy rollout and increase fairness and transparency in the sector overall.
The program includes rooftop PV, but solar car parks and covered pedestrian walkways can also be included, provided they are on the same property as the applicant.
Customers who wish to participate in the Solar ATAP program can purchase the solar PV system directly via cash, personal loans or credit card. Applicants can also choose to purchase solar electricity by signing a power purchase agreement (PPA) with solar investors, through a solar leasing program or a hybrid of both, as offered by Registered Solar PV Investor (RPVI).
According to SEDA, applicants for the Solar ATAP must meet a series of criteria. They must be a registered consumer of the electricity company Tenaga Nasional Berhad (TNB), and only applicants who are not registered under the Self Consumption (SelCo) or NEM program are eligible.
During the supply application process, a ‘domestic group’ must complete a connection assessment survey, after which consumers can apply to participate in Solar ATAP.
Any consumer who is also a generator – such as but not limited to co-generator and back-feed or TNB accounts registered under tenant sub-meters in the multi-tenant scheme – is not eligible to apply for Solar ATAP.
According to the latest figures from the International Renewable Energy Agency (IRENA), Malaysia’s cumulative solar capacity stood at 2,306 MW at the end of 2024, up from 2,146 MW in 2023.
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