Introducing Solar ATAP
INTRODUCTION
On 12 September 2025, the Ministry of Energy Transition and Water Transformation (PETRA) introduced the Solar Accelerated Transition Action Programme (“Solar ATAP”) as a continuity in the effort to utilize the building roof space for the generation of renewable energy from solar energy. Solar ATAP was introduced as replacement from the Net Energy Metering (NEM) which ended in June 2025.[i]
On 30 December 2025, the Energy Commission produced a Guideline for the Solar ATAP in Peninsular Malaysia which came into operation on 1 January 2026.[ii]
WHAT IS SOLAR ATAP?
Solar ATAP operates on a principle similar to Net Energy Metering (NEM), where excess energy exported to the grid is offset against the electricity consumed during the billing period. However, Solar ATAP differs from NEM’s “one-on-one” offset basis (1 kWh to 1 kWh). Instead, Solar ATAP bill credits are based on the Energy Charge for domestic consumers and the Average System Marginal Price (SMP) for non-domestic consumers. The net energy charge is calculated as follows:
Net Energy Charge (RM) = (Electricity imported from the grid × prevailing energy tariff) − (Electricity exported to the grid × Energy Charge or Average SMP)[iii]
The Energy Charge is a component of the retail energy tariff alongside the Automatic Fuel Adjustment (AFA) charge, Network Charges, Capacity Charges and Retail Charges.[iv]
Meanwhile, SMP is the price of the most expensive Marginal Generator dispatched by the System Operator to meet actual demand in a half-hour period.[v] The charge applicable for the Solar Atap energy export will be calculated by way of Average SMP which means the monthly average SMP for the daily period between 7:00 hour to 19:00 hour in the preceding calendar month.[vi]
It is also a feature in the Solar ATAP programme wherein there’s no fixed quota on the participation into the programme which has the wider capacity for enrollment of the consumers, as opposed to NEM that offered with a fixed quota allocation of the capacity limit.[vii]
This significant change in the mechanism as opposed to the previous NEM would enable prioritization of self-consumption by consumers while allowing them to be a part of the national energy transition initiative in generating and exporting the excess energy to the grid system.[viii]
WHO CAN APPLY
Solar ATAP is open to existing electricity consumers in Peninsular Malaysia who wish to install rooftop solar primarily for their own consumption. Both domestic and non-domestic/commercial consumers may participate, provided that they meet the following conditions:[ix]
- The applicant is a registered TNB consumer;
- The premises must not be a multi-tenant property (for example, buildings with multiple separate electricity accounts);
- The applicant must not currently have a solar PV system for self-consumption (SelCo) or have participated in the NEM programme. If the applicant is currently under NEM or has an existing self-consumption solar PV, the existing arrangement must first be terminated before joining Solar ATAP; and
- If the applicant is a participant in the Feed-In-Tariff (FiT) programme, the said applicant must be a participant under the normal supply account and not the FiT account.
TECHNICAL ASSESSMENT STUDY
Depending on the solar PV capacity limit and the tariff category of a consumer, some consumers may need to undergo technical assessment before approval. These assessments are to ensure that the local electricity network can safely accept the solar installation:[x]
- Connection Confirmation Check (CCC) – for more than 5Kw (Single Phase) and 15kW (Three Phase);
- Connection Assessment Study (CAS) – for more than 72kW (Non-Domestic/Commercial) for Low Voltage or Medium Voltage tariff category; and
- Power System Study (PSS) – more than 425kW (Non-Domestic/Commercial) for High Voltage tariff category.
CCC ASSESSMENT
A CCC assessment for domestic solar PV shall be carried out by TNB to verify the declared installed capacity (kW), current rating (A), voltage level (V) and the capability of the distribution network to safely accommodate the additional generation of energy.[xi] The chargeable fee to conduct the said assessment is fixed at RM1,000.00 per assessment.[xii]
CAS ASSESSMENT
Meanwhile, for CAS assessment which would be applicable to non-domestic/commercial consumers with a capacity limit of more than 72kW shall be carried out by TNB or any party endorsed by TNB where the scope of the assessment includes assessment on the Supply System connected to the consumer’s premise, fault level at the Point of Interconnection before and after connection of the solar PV, peak and off-peak load flow analysis, and any other issues which may have an impact to the Supply System.[xiii]
The chargeable fee for CAS assessment vary depending on the installed capacity. For capacity of more than 72kW and less than 180kW, the chargeable assessment fee is RM1,000.00 whilefor capacity of more than 180kW and less than 425 Kw, an assessment fee RM5,000.00 is chargeable. For any other capacity ranging between 425kW to 1MW (Medium Voltage), the chargeable fee would be RM8,000.00[xiv]
PSS ASSESSMENT
For High Voltage consumers, a PSS assessment shall be conducted by any party endorsed by the Grid Owner. PSS assessment involves the feasibility of a developer capacity generation injection into the Grid System. Should the assessment determine that any modification to the Supply System is required for the connection of the solar PV system, all costs associated with such modification works shall be borne by the applicant.[xv] The chargeable fee for PSS validation process is RM15,000.00[xvi]
HOW TO APPLY? (DOMESTIC)
The application for Solar ATAP programme works in two stages i.e. the approval and the installation stages.
Applications by domestic consumers would involve the following: -[xvii]
- appointment of a registered PV service provider and furnish the necessary documents including NRIC, Passport, SSM, latest bill, Single Line Diagram, endorsed C&S drawing and CCC report (if applicable);
- if the applied capacity limit exceeds 5kW for Single Phase and 15kW for Three Phase, a CCC assessment would be carried out before proceeding with the approval application;
- submission of the Solar ATAP application through the eATAP platform whereby an e-Certificate from the Sustainable Energy Development Authority (SEDA) shall be issued if all conditions are met; and
- upon the granting of approval, the consumer may commence installation, request for bi-directional meter, submit and sign the Solar ATAP contract with TNB.
The illustration of the application workflow can be referred below: –
Brief Workflow for Domestic Application
HOW TO APPLY? (NON-DOMESTIC/COMMERCIAL)
Applications by non-domestic/commercial consumer would involve the following: -[xviii]
- appointment of a registered PV service provider and furnished the necessary documents including NRIC/Passport/SSM, Single Line Diagram, latest electricity bill, endorsed C&S drawing, CAS/PSS Approval (if applicable);
- if the applied capacity limit exceeds 72kW with the tariff category of Low Voltage and Medium Voltage, a CAS assessment shall be made and prepared prior to submission. Conversely, if the applied capacity falls under High Voltage tariff category, a PSS assessment would be applicable;
- submission of the Solar ATAP application through the eATAP platform whereby an e-Certificate from the Sustainable Energy Development Authority (SEDA) shall be issued if all the conditions are met; and
- upon the granting of approval, the consumer may commence installation, request for bi-directional meter, submit and sign the Solar ATAP contract with TNB.
The illustration of the application workflow can be referred below: –
Brief Workflow for Non-Domestic/Commercial Application
THE SOLAR ATAP CONTRACT
The Solar ATAP Contract is a contract entered between the applicant/consumer with TNB which shall be entered before the Commencement Date, as shown above. It is important to note that any approval granted by SEDA will be automatically cancelled should the Solar ATAP Contract remains unexecuted before the said Commencement Date.[xix]
It is also pertinent to note that, while the operation of Solar ATAP remains in effect for 10 years from the Commencement Date, any increase in the existing capacity of the solar PV by the consumer will not extend the Solar ATAP Contract.[xx] After the end of the period of operation, a consumer may continue to operate its solar PV for self-consumption, without the Solar ATAP programme, governed under the Energy Commissions Guideline for Solar Photovoltaic Installation for Self-Consumption.[xxi]
WHAT HAPPENS IF THE PROPERTY IS SOLD OR THE CONSUMER MOVES?
If a Solar ATAP consumer sells their property, the new owner can apply to continue the program for the remaining contract period. To do so, the new owner must sign a new Solar ATAP contract with the electricity utility company (EUC). Similarly, if a Solar ATAP consumer moves to a new location, they may apply to transfer the program to their new premises for the remainder of the 10-year period. This process also requires signing a new contract with the EUC at the new site.[xxii]
CONCLUSION
With significantly expanded participation limits, a wider range of residential and commercial consumers can now actively contribute to the national energy transition. This shift allows consumers to move beyond being mere energy users to becoming active contributors to a greener grid, all while enjoying the direct economic benefit of long-term reductions in monthly electricity bills and protection against future tariff hikes.
Authors:
- Azrul Haziq Khirullah
- Danial Arasy
- Wei Hong
- Imanee
References:
[i] Media Release by PETRA on 12 September 2025 (PETRA.100-9/1/4 JLD.1 (46))
[ii] Guidelines for Solar Accelerated Transition Action Programme in Peninsular Malaysia (“Guidelines”) dated 30 December 2025
[iii] Para 13.2 of the Guidelines at page 23
[iv] https://www.mytnb.com.my/tariff/index.html?v=1.1.47#domestic
[v] Para 2.1 of the Guidelines at page 10
[vi] Para 2.1 of the Guidelines at page 5
[vii] Para 5 of the Guidelines at page 13
[viii] Para 3 of the Guidelines at page 2
[ix] Para 6 of the Guidelines at page 13
[x] Para 10.3 of the Guidelines at page 16
[xi] Para 10.4 of the Guidelines at page 17
[xii] Para 10.14 of the Guidelines at page 19
[xiii] Para 10.8 of the Guidelines at page 18
[xiv] Para 10.14 of the Guidelines at page 19
[xv] Para 10.12 of the Guidelines at page 18
[xvi] Para 10.16 of the Guidelines at page 19
[xvii] Appendix 1 of the Guidelines at page 32
[xviii] Appendix 1 of the Guidelines at page 33
[xix] Para 17.1 and 17.2 of the Guidelines at page 26
[xx] Para 17.3 of the Guidelines at page 26
[xxi] Para 4.2 of the Guidelines at page 13
[xxii] Para 18 of the Guidelines at page 27
