Does Solar ATAP credit roll over?

No. Unlike NEM 3.0, Solar ATAP credits are forfeited at the end of the month. This makes precise system sizing critical to avoid financial loss.

What is the Solar ATAP export rate?

Exports are paid at the System Marginal Price (SMP), which is a market-driven rate (approx 24 sen/kWh), significantly lower than the retail rate.

What is the difference between NEM and Solar ATAP?

The main difference is the export rate. NEM offered a 1-to-1 offset at retail tariff, while Solar ATAP uses the System Marginal Price (SMP) for commercial users and Energy Charge rate for residential users. Solar ATAP also has no quota limit and allows up to 100% Max Demand sizing for non-domestic users.

What is SMP (System Marginal Price)?

System Marginal Price (SMP) is the wholesale electricity clearing price determined by the New Enhanced Dispatch Arrangement (NEDA). It fluctuates based on real-time electricity demand, generation capacity, and fuel costs. Commercial and industrial Solar ATAP users receive export credits at this rate.

Updated: January 2026

Solar ATAP 2026: 3 Hidden Risks (and How to Avoid Them)

Welcome to the future of solar energy in Malaysia. As of January 1, 2026, the Solar Accelerated Transition Action Programme (ATAP) has replaced the previous Net Energy Metering (NEM) scheme.

Warning: The rules have changed. The old strategy of "installing the biggest system possible" will now lose you money. This guide explains why.

Quick Definition: What is Solar ATAP?

Solar ATAP (Accelerated Transition Action Programme) is the 2026 renewable energy scheme replacing NEM 3.0. Unlike the old "1-to-1 offset," Solar ATAP uses a Net Billing system where you sell excess power at a lower market rate (SMP) and buy at the retail rate.

Risk #1

The Financial Trap: "No Rollover"

Under the new Solar ATAP scheme, your savings are calculated differently

The primary goal is to use the electricity you generate rather than exporting it. Understanding this fundamental shift is critical to maximizing your ROI.

Self-Consumption

Saves you the full retail rate (e.g., 57 sen/kWh). This is where your real savings come from.

Export Credits

Sold to TNB at the System Marginal Price (SMP), approx 24 sen/kWh - less than half the retail rate.

The Risk: Unused credits are forfeited at month-end. They do not roll over. If you oversize your system, you lose money every single month.

Comparison of TNB bill before and after Solar ATAP showing self-consumption savings vs export credits — TNB bill breakdown: Self-consumption savings vs export credits under Solar ATAP

Risk #2

Eligibility: Is Solar ATAP Right for You?

Solar ATAP favors homes with high daytime usage

If you are never home during the day, your ROI will drop significantly unless you add batteries. Follow this decision tree to see if you are the ideal candidate:

Solar ATAP eligibility flowchart decision tree for Malaysian homeowners 2026 — Decision tree: Is Solar ATAP right for your home?

Risk #3

NEM 3.0 vs. Solar ATAP: The Breakdown

Understand the "downgrades" in the new system so you can plan around them

What's Changed?

See the key differences at a glance

Feature	NEM 3.0	Solar ATAP
Export Rate	1-to-1 Offset (Retail)	SMP / Energy Charge
Quota	Limited (First come)	No Fixed Quota
System Sizing	75% Max Demand	100% Max Demand
Credit Rollover	24 Months	Same Month Only
Contract Duration	Lifetime of System	10 Years

Comparison table of NEM 3.0 vs Solar ATAP 2026 rules and rates — Key differences: NEM 3.0 vs Solar ATAP 2026

Bottom Line: Solar ATAP favors self-consumption over export. Size your system to use most of the energy yourself for the best ROI.

Export Rate Explained

Understanding SMP (System Marginal Price)

How your export credits are calculated under Solar ATAP

Market-based Energy Offset Rates

Commercial & Industrial: Export credits valued at the Average System Marginal Price (SMP) - a market-driven wholesale rate determined by the New Enhanced Dispatch Arrangement (NEDA). SMP fluctuates based on real-time electricity demand, generation capacity, and fuel costs.

Residential: Export credits at the Energy Charge rate based on your consumption tier - approximately RM0.27/kWh if monthly usage is ≤1,500 kWh, or RM0.37/kWh if usage exceeds 1,500 kWh.

Note: Credits can offset your electricity usage, but they cannot be used to offset Automatic Fuel Adjustment (AFA) charges or other non-energy components of your bill.

RM0.20-0.40

Typical SMP Range per kWh

TNB GSO

Determined by Grid Operator

Variable

Fluctuates with Market Demand

Pro Tip: Since export rates are lower than retail tariff, battery storage becomes more attractive. Store excess energy for night use instead of exporting to maximize savings.

Who Can Apply

Solar ATAP Eligibility

Requirements for residential, commercial, and industrial applicants

Residential

Homeowners with TNB accounts can install rooftop solar systems.

Single-phase: Up to 5 kWac
Three-phase: Up to 15 kWac
Larger systems require TNB technical assessment
Export at Energy Charge rate

Commercial

Offices, shops, and commercial buildings.

Up to 100% of Max Demand
Capped at 1 MWac
Export at SMP rate

Industrial

Factories, warehouses, and manufacturing facilities.

Up to 100% of Max Demand
Capped at 1 MWac
Export at SMP rate

Important: If you currently have an active NEM contract, you must terminate it before applying for Solar ATAP. You cannot have both schemes simultaneously.

The Process

How to Apply for Solar ATAP

Simple steps from assessment to commissioning

Appoint a Registered PV Service Provider (RPVSP)

Engage an RPVSP who will manage the end-to-end application process on your behalf, including site assessment and system design.

TNB Technical Assessment

Your RPVSP obtains technical clearance from TNB via Connection Confirmation Check (CCC) for domestic or Connection Assessment Study (CAS) for larger systems.

System Installation

Once TNB technical clearance is obtained, your RPVSP installs the solar PV system on your rooftop.

SEDA Application & Documentation

Submit application to SEDA with required documents: Solar ATAP Contract, Form G & H (single-line diagrams), Testing & Commissioning Form, and competent person certificates.

Commissioning & Contract Execution

Upon SEDA approval, TNB installs the export meter. Your Solar ATAP contract is executed and export credits begin.

Common Questions

Frequently Asked Questions

Quick answers about Solar ATAP

Is Solar ATAP worth it compared to NEM?

Yes, for most users. While the export rate is no longer 1-to-1, Solar ATAP offers no quota restrictions, larger system sizes (100% vs 75% Max Demand for non-domestic), and year-round applications. The key is sizing your system to maximize self-consumption rather than export.

What happens to my existing NEM contract?

Existing NEM contracts continue until their expiry date. You cannot participate in both NEM and Solar ATAP simultaneously. If you wish to switch, you must terminate your existing NEM contract first.

Should I add battery storage?

Battery storage becomes more attractive under Solar ATAP since export rates are lower than retail tariff. Storing excess for night use maximizes self-consumption and reduces reliance on grid imports, improving your overall ROI.

What is a Registered PV Service Provider (RPVSP)?

An RPVSP is a company registered with SEDA Malaysia to design, install, and commission solar PV systems. They handle the entire application process including TNB technical assessment and SEDA registration on your behalf.

Can I claim GITA tax incentive?

Yes. The Green Investment Tax Allowance (GITA) is separate from Solar ATAP and has been extended through 2026. Businesses can claim 100% tax allowance on qualifying solar and battery storage investments via MIDA.

What is Connection Confirmation Check (CCC)?

CCC is a technical assessment by TNB required before installing a solar system. For domestic systems ≤72kW, no detailed study is required. Larger systems need a Connection Assessment Study (CAS) or Power System Study (PSS).