During mid-2025, The Edge Malaysia reported a noticeable slowdown in rooftop solar take-up linked to uncertainty around new TNB power tariffs. Prospective customers paused applications waiting for tariff clarity, since payback economics depend on the avoided cost of grid electricity. We felt this in our own pipeline — quote conversion rates softened through Q2, then rebounded once the new tariffs were published.
- Rooftop solar applications softened during the mid-2025 tariff review window
- Customers paused to wait for clarity on the new tariff schedule
- Take-up rebounded once tariffs were finalised
- Pattern was sharper for commercial than residential
- Underlying demand was intact — the slowdown was timing, not preference
Why tariff uncertainty matters for solar payback
Solar payback is calculated against the avoided cost of grid electricity. If you pay RM 0.50/kWh from TNB and self-generate from solar at an LCOE of RM 0.25/kWh, every self-consumed kWh saves RM 0.25. If the future TNB price moves to RM 0.60/kWh, your savings per kWh rise to RM 0.35 and payback shortens. Conversely, if tariffs were to drop, payback lengthens. During the 2025 review window, both directions were on the table — and commercial buyers especially waited for clarity before signing.
What happened after tariffs clarified
Once the new tariff structure was published and absorbed, take-up rebounded. The pause was a timing pattern, not a preference shift. Many customers who paused during the review window simply moved their install start date forward by 2-3 months. Installers like us who pre-staged customer pipelines during the slowdown saw a corresponding bunch of Q3-Q4 2025 starts come through.
What this means today
The 2025 tariff-uncertainty episode is settled background. The lesson for buyers: install when the policy framework is stable, which 2026 is — Solar ATAP launched, SuRIA Home rebate announced, GITA merged and confirmed. The current environment is the opposite of the mid-2025 pause: incentives stacking, programmes stable. The only timing constraint now is the finite SuRIA Home envelope. See our Solar ATAP 2026 guide for the full current state.
Source
This summary is based on reporting from The Edge Malaysia. Read the full original report at the source link for the publisher's complete coverage.