Latest Regulatory Updates (2026)

Battery Storage December 12, 2025

Sabah Inaugurates Southeast Asia's Largest BESS at 100MW/400MWh

Malaysia's first large-scale battery energy storage system was inaugurated in Lahad Datu, Sabah on 12 December 2025. The 100 MW / 400 MWh facility — built by MSR-Green Energy with equipment supplied by Sungrow at a cost of RM645 million — is the largest BESS by output in Southeast Asia. Sabah Chief Minister Datuk Seri Hajiji Noor said the project is designed to "improve grid stability, reduce dependence on diesel and support the integration of renewable energy in the state." Sabah's utility-scale solar PV is projected to reach 350 MW (23% of state generation) by 2027.

Source: Energy-Storage.News

Battery Storage December 3, 2025

Energy Commission Opens MyBEST Tender for 400MW/1,600MWh Utility BESS

The Energy Commission has launched the Malaysia Battery Energy Storage Technology (MyBEST) open bidding exercise for a 400 MW / 1,600 MWh utility-scale battery storage system on the Peninsular grid. Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir confirmed that TNB's BESS will commence operations by end of 2026, providing critical grid flexibility to absorb growing rooftop solar and Solar ATAP capacity. EPC bidders must include dismantling, decommissioning, and recycling procedures to safeguard against battery-waste impact.

Source: Malay Mail · See our analysis: Solar Battery Malaysia 2026 — Full BESS Guide

Milestone April 3, 2026

Malaysia's Solar Capacity Surpasses 5.7 GW

Malaysia added over 1.4 GW of solar in 2025, bringing total deployed solar capacity beyond 5.7 GW across LSS, NEM, and Feed-in Tariff schemes. The breakdown includes 6,028 MW approved under LSS (across 6 rounds to 117 companies), 2,747 MW from net-metering schemes, and 345 MW from the feed-in tariff scheme. Analysts forecast even more deployment in 2026.

Source: pv magazine

RE Target February 2026

Malaysia Exceeds 2025 Renewable Energy Target at 32% Capacity

Malaysia surpassed its 2025 target of 20% renewable energy installed capacity, reaching 32%. Under the National Energy Transition Roadmap (NETR), the country now aims for 40% renewable energy by 2035 and 70% by 2050. Budget 2026 includes RM16.5 billion in renewable energy investments from GLICs/GLCs and launches CRESS, projected to generate RM3.5 billion in investments.

Source: Energy Tracker Asia

Major Project January 2026

Masdar Signs PPA for 200 MW Floating Solar at Chereh Dam — SE Asia's Largest

A consortium led by UAE's Masdar signed a US$208 million PPA with TNB for a 200 MW floating solar project at Chereh Dam, Pahang — Southeast Asia's largest floating solar plant. Covering 950 acres and powering over 100,000 homes, the project was secured under LSS5+ with the lowest tariff in the floating solar category. This is the inaugural project under the 10 GW renewable energy roadmap agreed between Masdar and MIDA in 2023.

Source: pv magazine | Masdar Official

New Policy January 1, 2026

Solar ATAP Officially Launches: No Fixed Quota

The Ministry of Energy Transition (PETRA) has officially launched the Solar Accelerated Transition Action Programme (Solar ATAP) to replace NEM 3.0. The new framework removes the quota limit for applicants and allows Commercial users to export excess energy at the System Marginal Price (SMP). This represents a major policy shift to accelerate Malaysia's renewable energy adoption.

Source: PETRA Media Statement (PDF)

Corporate January 5, 2026

CRESS Program: Third Party Grid Access

The Corporate Renewable Energy Supply Scheme (CRESS) guidelines are now live. This program allows large factories to purchase green electricity directly from solar developers via the national grid (Third Party Access), bypassing roof limitations.

Source: Single Buyer Malaysia (CRESS Guidelines)

Tax Savings January 10, 2026

GITA Tax Allowance Merged & Extended

MIDA has confirmed that the Green Investment Tax Allowance (GITA) is extended through 2026. Note that "GITA Project" (Own Consumption) is now merged with "GITA Asset", streamlining the application process for businesses claiming the 100% tax allowance.

Source: MIDA Official Announcement

Technology January 12, 2026

Solar Capacity Limit Increased to 100%

Under the new Solar ATAP guidelines, commercial and industrial users are now permitted to install solar PV systems up to 100% of their Maximum Demand (MD), an increase from the previous 75% limit.

Source: Energy Commission Guidelines (PDF)

Investment December 2, 2025

World Bank Funds Malaysia's 4 GW / 5.12 GWh Solar-Plus-Storage Complex

A massive 4 GW solar-plus-storage complex in Malaysia received World Bank funding. The project pairs ground-mount solar PV with a 5.12 GWh battery energy storage system (BESS), representing one of the largest integrated solar and battery projects in Southeast Asia. The funding signals growing international confidence in Malaysia's renewable energy transition.

Source: pv magazine

Policy December 22, 2025

Solar ATAP Expected to Attract More Rooftop Solar Installations

Industry players have welcomed Solar ATAP's removal of key technical limitations that previously held back adoption. Installations are now allowed up to 100% of maximum demand (up from 85%), the 60% fuse rating cap has been removed, and three-phase domestic capacity has been raised from 12.5 kW to 15 kW. The Malaysian Photovoltaic Solar Energy Association (MPSEA) praised the reforms as a significant step forward.

Source: The Star

Policy December 19, 2025

PETRA Confirms Solar ATAP Launch on January 1, 2026

PETRA officially confirmed that Solar ATAP will launch on 1 January 2026, with guidelines published on 31 December 2025. Domestic single-phase systems are capped at 5 kW, while three-phase capacity is increased to 15 kW. The programme launches with no fixed quota, though the government retains authority to impose a cap if grid stability is at risk.

Source: PETRA Official Press Release (PDF)

Policy December 18, 2025

PETRA Set to Implement Solar ATAP Renewable Energy Programme

Bernama reported that PETRA is ready to implement Solar ATAP, the successor to NEM which ended on 30 June 2025. The revised launch date was set for 1 January 2026, shifted from the originally announced December 1. Applications will open via the SEDA website, with Energy Commission guidelines published on 31 December 2025.

Source: Bernama

Policy December 2, 2025

Solar ATAP Registration Delayed to January 2026

SoyaCincau reported that Solar ATAP registration has been pushed back from the originally planned 1 December 2025 to 1 January 2026. The Energy Commission confirmed programme guidelines would be published on 31 December 2025. Existing NEM customers can continue under their contracts, while those whose offset periods expire may transition to SelCo, CREAM, or install energy storage systems.

Source: SoyaCincau

Policy November 25, 2025

TransitionZero Analyses Malaysia's Evolving Rooftop Solar Landscape

TransitionZero published an analytical review of Malaysia's rooftop PV trends, examining the evolution from NEM to Solar ATAP and the broader policy context. The report provides independent monitoring data on Malaysia's progress toward its renewable energy targets and the effectiveness of rooftop solar incentive programmes.

Source: TransitionZero

Policy November 19, 2025

Malaysia to Launch Solar ATAP Scheme on December 1

PETRA announced Solar ATAP as the direct successor to NEM, initially targeting a 1 December 2025 registration date. The programme retains NEM's core energy offset principle and incorporates the system marginal price mechanism from NEM NOVA. Existing NEM contract holders would retain their current terms, with options to switch to SelCo, CREAM, or battery storage when their offset periods expire.

Source: SolarQuarter

Technology November 3, 2025

Malaysia's Solar Energy Ambitions Get a Boost with HJT Technology

A tripartite agreement signed on 17 October 2025 between Amerivexx Sdn Bhd, China's Anhui Huasun Energy, and Shanghai Investigation Design and Research Institute will bring heterojunction (HJT) photovoltaic technology to Malaysia. The initial phase involves a 120 MW ground-mounted PV station, with offshore PV platforms targeted to generate up to 1 GW by 2030. Wind and solar currently account for just 2% of Malaysia's total energy generation.

Source: Free Malaysia Today

Policy October 9, 2025

Over 6 GW of Solar Approved Under Malaysia's LSS Programme; LSS6 Launches

Malaysia's Large-Scale Solar programme has approved 6,028 MW to 117 companies across six bidding rounds since 2016. LSS6 — the largest round yet — approved 1,975 MW and is expected to mobilise around RM6 billion in private investment and create 12,000 jobs. LSS5 projects are slated for commercial operations in 2026–2027.

Source: pv magazine

Budget 2026 October 10, 2025

Budget 2026: What It Means for Renewable Energy and Solar

Budget 2026, tabled at RM 470 billion, includes key renewable energy measures: Solar ATAP with a 500 MW ceiling for rooftop installations, LSS6 adding nearly 2 GW of new capacity (RM 6 billion in private investment), and CRESS projected at 500 MW. A carbon tax launches in 2026 targeting high-emission sectors at an expected rate of RM 35-45 per tonne. Green financing is supported through GTFS 5.0.

Source: Sunview Group

Policy September 12, 2025

Government to Roll Out Solar ATAP in December to Replace NEM

PETRA announced the Solar Accelerated Transition Action Programme (Solar ATAP) to replace the Net Energy Metering scheme which ended 30 June 2025. The programme allows solar installations up to 100% of maximum demand, with excess energy sold back at the System Marginal Price (SMP). Solar ATAP aligns with Malaysia's target of 70% renewable energy capacity by 2050.

Source: Bernama | RTM

Policy September 11, 2025

New Rooftop Solar Initiative to Launch Without Fixed Quota

Consumer tech portal Lowyat.NET reported on the upcoming Solar ATAP programme, explaining the shift from NEM's quota-based system to an open application model. Energy offsets will be calculated using the System Marginal Price, which fluctuates every 30 minutes based on demand, designed for long-term sustainability of the solar export framework.

Source: Lowyat.NET

Policy August 25, 2025

Malaysia Ramps Up Large-Scale Solar to Hit 40% RE Target

Malaysia is expanding large-scale solar (LSS) projects to achieve its 40% renewable energy target by 2040. Battery Energy Storage Systems (BESS) and smart grid technologies are being deployed to improve grid flexibility. The government is also pursuing the ASEAN Power Grid initiative for cross-border energy trade. Policy frameworks include the National Energy Transition Roadmap (NETR) and the 13th Malaysia Plan.

Source: Malay Mail

Technical July 2, 2025

Malaysia Upgrades Net Metering Scheme for Rooftop PV

International solar trade publication pv magazine reported that approximately 1.7 GW of PV systems are currently operating under NEM programmes, with an additional 595 MW under development. Installed solar capacity reached 2,306 MW at end of 2024. NEM 3.0's total quota of 2.5 GW is split across NEM Rakyat (700 MW), NEM GoMEn (100 MW), and NEM Nova (1.7 GW).

Source: pv magazine

Policy July 1, 2025

Rooftop Solar Users Can Offset Non-Energy Charges, Ministry Confirms

PETRA confirmed that low-voltage rooftop solar users can continue offsetting their electricity bills, including non-energy charges such as network and capacity costs, on a kWh basis. NEM 2.0 users retain full offsetting privileges. Commercial and industrial NEM 3.0 consumers can offset against the average system marginal price. Settlement periods are standardised to 12 months across all rooftop solar programmes.

Source: The Edge Malaysia

Market July 1, 2025

Rooftop Solar Take-Up Slows Amid New Power Tariff Uncertainty

Rooftop solar uptake slowed significantly as Malaysia transitioned to a new itemised electricity tariff structure separating energy costs from non-energy charges. The commercial/industrial sector saw the sharpest reversal, with 282.69 MW outstanding. The residential sector had 13.19 MW unfilled from a 100 MW quota. The central question was whether excess solar energy could offset the new non-energy charges.

Source: The Edge Malaysia

Policy May 26, 2025

Malaysia Expands NEM Rakyat Quota by 100 MW

PETRA added an extra 100 MW to the NEM Rakyat residential quota after the existing allocation was fully subscribed, bringing the total to 600 MW since launch in 2011. The additional quota was valid until 30 June 2025. NEM Rakyat operates on a 1-for-1 offset: every 1 kWh exported to the TNB grid earns 1 kWh of import credit on a 10-year contract.

Source: SolarQuarter

Policy May 23, 2025

Government Mulls New Rooftop Solar Mechanism, Adds 100 MW

The government added 100 MW to the NEM Rakyat quota just two days after the existing 600 MW was fully exhausted. Three rooftop solar options remained available: NEM Rakyat (surplus offsetting), SelCo (self-consumption), and CREAM (aggregators rent rooftop space at 15 sen/kWh). NEM Nova (C&I) still had 524.65 MW remaining out of 1,700 MW. The Ministry committed to more inclusive future RE initiatives.

Source: The Edge Malaysia

Policy October 18, 2024

Government Extends Rooftop Solar Programme Till End-June 2025

Prime Minister Anwar Ibrahim announced that NEM 3.0 would be extended from 31 December 2024 to 30 June 2025. The programme had a combined 1,600 MW capacity across three categories: NEM Rakyat (400 MW, 89.9% approved), NEM GoMEn (100 MW, 82.15% approved), and NEM Nova (1,100 MW, 92.37% approved), demonstrating strong demand for rooftop solar across all sectors.

Source: The Edge Malaysia

Reference Accessed March 2026

SEDA Malaysia: Official Solar ATAP Programme Page

SEDA Malaysia's official Solar ATAP portal provides comprehensive programme details. The programme is open year-round with no fixed quota. Two purchase models are available: Power Purchase Agreement (PPA) where an investor owns and maintains the system, and Solar Leasing with fixed monthly payments and ownership transfer at lease end. Applications are submitted through SEDA's online portal.

Source: SEDA Malaysia