Late-2025 industry analysts and installers — us included — expected the new Solar ATAP programme to materially expand rooftop solar adoption when it replaced NEM 3.0 from 1 January 2026. The Star reported the projected uptake in late December 2025. Halfway into 2026, the forecast is playing out: our application volume in Q1 2026 was noticeably higher than the equivalent period under NEM 3.0 a year earlier.
- 500 MW annual residential capacity ceiling under Solar ATAP
- 100% Maximum Demand sizing now permitted for commercial users (up from 75%)
- Programme runs continuously — no fixed national quota
- Replaces NEM 3.0 which closed to new applications late 2025
- Stacks with SuRIA Home rebate for residential and GITA for commercial
What makes Solar ATAP more attractive than NEM 3.0
Three things changed the economics. One: commercial MD cap rose from 75% to 100% — a factory previously limited to 75 kWp on a 100 kW MD profile can now install the full 100 kWp and recover more of its consumption. Two: the open-ended programme structure removed the "quota anxiety" psychology — customers no longer pull us into rushed quotes just to beat a closing window. Three: stacked incentives (SuRIA Home for residential, GITA for commercial) make the after-incentive payback noticeably shorter than 2024–2025 vintage installs.
The expected installation profile
Residential systems under Solar ATAP cluster around 5 kWp – 10 kWp — that's a typical Malaysian 3-4 bedroom landed home with 800–2,000 sq ft of usable roof. Commercial installs commonly fall in the 20–200 kWp range for SMEs and 200 kWp–1 MW for warehouses and small factories. The 500 MW annual residential ceiling translates roughly to 75,000–100,000 homes per year if averaged at 6 kWp — well above the historical NEM Rakyat absorption rate.
What this means for you
The optimistic outlook reduces the "should I wait?" hesitation. Malaysian solar policy has compounded across multiple programmes (FiT → NEM 1.0 → 2.0 → 3.0 → Solar ATAP), and the trajectory keeps getting more accessible, not less. Two action items: for homeowners, submit your Solar ATAP application early in 2026 while the SuRIA Home 250 MW envelope is open. For businesses, pair Solar ATAP with GITA in the same financial year — that's how our Klang Valley SME customers are getting the strongest IRR.
Source
This summary is based on reporting from The Star. Read the full original report at the source link for the publisher's complete coverage.