If you're running a Malaysian business and considering solar PV, the Green Investment Tax Allowance (GITA) is the single most important tax incentive to understand. It can shorten your payback by 1-3 years and is the reason most commercial solar projects in 2026 are now bankable.
This guide covers what changed in 2026, who qualifies, what you can claim, and how to apply through MIDA — written for business owners, not tax accountants.
What is GITA?
GITA is a Malaysian tax incentive administered by the Malaysian Investment Development Authority (MIDA) that allows companies to claim a 100% capital allowance on the capital expenditure (capex) of qualifying green assets — including:
- Solar photovoltaic (PV) systems and panels
- Solar inverters
- Mounting structures and wiring
- Battery Energy Storage Systems (BESS)
- Energy-efficient HVAC, lighting, building-management systems
The 100% allowance is set off against 70% of your statutory income for the year of assessment. Any unused balance is carried forward indefinitely until fully utilised.
What changed in 2026
The biggest change for 2026 was confirmed by MIDA in January: GITA Project (Own Consumption) is merged with GITA Asset. Before this merger, the two tracks ran in parallel:
- GITA Asset: for purchasing qualifying assets (e.g. solar panels, BESS) to be used in your business
- GITA Project (Own Consumption): a separate track for self-generated solar projects
The merger streamlines this into a single application path, reducing paperwork and ambiguity for companies installing rooftop solar for their own consumption. Reference: MIDA announcement.
Who qualifies in 2026
GITA is available to:
- Sdn Bhd companies registered with SSM Malaysia
- Partnerships and LLPs
- Sole proprietors with business income (the solar must be used for business purposes)
- Businesses across most sectors — manufacturing, services, agriculture, hospitality, F&B, logistics
What doesn't qualify:
- Residential homeowners installing solar at their personal residence (no statutory income)
- Solar systems that have already received another tax incentive for the same expenditure (no double-dipping)
- Equipment purchased and installed before the date of MIDA approval (in most cases)
How GITA changes solar payback
Here's a worked example for a typical Selangor SME with a 100 kWp rooftop solar system at RM 380,000 capex:
| Scenario | Effective payback |
|---|---|
| Without GITA | ~6 years |
| With GITA (24% corporate tax bracket) | ~4-4.5 years |
| Effective tax saving (RM 380K × 24%) | ~RM 91,200 |
For larger systems or BESS-inclusive projects, the absolute tax saving scales linearly — so a 500 kWp factory installation can claim RM 400,000+ in tax allowance.
The application process — step by step
- Site assessment and design (we handle this) — establishes equipment list, capex, and business case
- Submit GITA Asset application to MIDA before purchasing the equipment, with the design documents and quotation
- MIDA approval letter — typically 6-12 weeks; the letter sets the maximum eligible capex
- Proceed with installation — invoices and receipts must match the approved scope
- Claim during your annual tax filing — your tax agent attaches the MIDA approval to Form C alongside the capital allowance schedule
Important timing note: apply before committing to the equipment purchase. Approvals issued after purchase are commonly refused. We coordinate the MIDA timeline so installation only proceeds after approval.
What we handle for you
For our commercial solar customers, we provide the design package MIDA requires, the quantity-surveyor-style capex breakdown, and a single-line diagram. You hand the package to your tax agent, who files the GITA Asset application. This typically takes us a few days to prepare; MIDA approval takes weeks.
If you're considering solar plus a battery, the BESS guide walks through how the GITA-eligible BESS capex stacks alongside the solar capex in a single GITA claim.
Common pitfalls
- Buying equipment before MIDA approval — disqualifies most of the claim
- Mismatched capex on invoices vs. application — MIDA requires exact match
- Mixing solar with non-qualifying equipment on a single invoice — split invoices
- Missing the documentation window — your tax agent needs MIDA approval letter before Form C filing
- Assuming sole proprietors can't claim — they can if there's business income
References & further reading
- MIDA — GITA Project & GITA Asset merger
- MIDA Malaysia (official portal)
- Solar Battery Malaysia 2026 — BESS & GITA
- Commercial Solar Malaysia services
Disclaimer: This guide is for general information only and is not tax advice. GITA rules and rates may change. Always confirm current rules with MIDA and your appointed tax advisor before making decisions.