Solar ATAP vs NEM 3.0: Key Differences for 2026
Solar ATAP vs NEM 3.0 comes down to one change. NEM 3.0 credited exported solar 1:1, while Solar ATAP pays a lower export rate and rewards self-consumption. This guide compares both schemes and shows which setup pays more for your home or business.
What Is NEM 3.0, and What Replaced It?
Solar ATAP vs NEM 3.0 in Short
NEM 3.0 (Net Energy Metering) was Malaysia's rooftop solar scheme run by SEDA. Exported solar was credited 1:1 against your TNB bill, and NEM 3.0 closed to new applicants on 30 June 2025. Solar ATAP replaced it on 1 January 2026. Solar ATAP has no quota, but exports earn the Energy Charge rate for homes and the average System Marginal Price (SMP) for businesses. See our Solar ATAP export rate guide for the latest SMP figures.
NEM Rakyat
For residential consumers. System size up to 72kW. 1:1 offset rate. Has quota limits.
NEM NOVA
For commercial & industrial. Up to 1MW (special approval for larger). Virtual power purchase available.
GoMEn
For government buildings. Special program for federal and state government facilities.
Quota Based
NEM programs have annual quota limits. Once quota is full, new applications go on waiting list.
NEM 3.0 Quota Statistics (2021-2025)
Key Milestones
- 2016: NEM 1.0 launched with 500 MW quota, exports paid at a displaced-cost rate below retail
- 2019: NEM 2.0 moved exports to a 1:1 offset
- 2021: NEM 3.0 introduced with 2,500 MW additional quota
- May 2025: NEM Rakyat reached 99.8% capacity (599/600 MW approved)
- June 2025: Government extended quotas (+100 MW Rakyat, +300 MW NOVA) until 30 June 2025
- Jan 2026: Solar ATAP replaces NEM with no-quota system
Over 96,000 rooftop solar users under MBIPV and NEM schemes continue to receive export credits under their original programme rules.
Sources: SEDA Malaysia, Ministry of Energy
Solar ATAP vs NEM 3.0: Side by Side
NEM 3.0 vs Solar ATAP Key Differences
Compare export rate, rollover and size limits before you size a system
| Feature | NEM 3.0 | Solar ATAP |
|---|---|---|
| Quota | Limited annual quota | No quota limit |
| Export Credit Rate | 1:1 offset at the retail rate | Energy Charge rate (homes), average SMP (businesses) |
| Credit Rollover | Unused credit carried forward up to 24 months | Same billing month only, unused credit forfeited |
| Max Size (Business) | Up to 75% of Maximum Demand | Up to 100% of Maximum Demand, capped at 1 MW |
| Max Size (Homes) | 12.5 kW (three-phase) | 5 kW single-phase, 15 kW three-phase |
| Contract | Original NEM contract terms | 10 years, then self-consumption only |
| Available Since | 2021 (NEM 3.0), closed June 2025 | 1 January 2026 |
| Application | Through SEDA | SEDA eATAP portal, filed by a registered PV service provider |
Recommendation: Solar ATAP is the only open rooftop scheme for new installations in 2026. Size the system to your daytime load. Self-consumed solar saves the full tariff, while exported solar earns a much lower rate.
Solar ATAP vs NEM 3.0 for a Business in Malaysia
Bigger System Allowed
- NEM 3.0 capped business systems at 75% of Maximum Demand
- Solar ATAP allows up to 100% of Maximum Demand
- Hard cap of 1 MW per account
Lower Export Value
- Business exports earn the average SMP
- Average SMP (7am to 7pm) was RM0.1911/kWh in January 2026
- Credits do not offset AFA or other non-energy charges
Daytime Load Wins
- Factories and warehouses running 8am to 6pm use most solar on site
- Every self-consumed kWh saves the full tariff
- Oversized systems export more at the low rate
Battery Optional
- BESS is required only above 1 MWac
- Add a battery for evening peaks or MD reduction
- See solar battery price guide
Sources: SEDA Solar ATAP FAQ, Single Buyer SMP data, Baker McKenzie
How Net Energy Metering Works
1. Generate Solar
- Solar panels produce electricity during daytime
- Power is first used by your home/business
- Excess is exported to TNB grid
2. Export Excess
- Bi-directional meter records export
- Exported kWh credited at retail rate
- NEM: 1:1 rate (same as import)
3. Import at Night
- At night, import from grid as normal
- Export credits offset import charges
- Pay only net difference
4. Monthly Billing
- NEM: Unused credit carried forward up to 24 months
- ATAP: Unused credit forfeited at month-end
- Minimum charge may still apply
NEM 3.0 Program Details
NEM Rakyat
For: Residential
- Domestic tariff consumers
- System size: Up to 72kW
- 1:1 energy offset
- Annual quota applies
NEM NOVA
For: Commercial & Industrial
- C&I tariff consumers
- System size: Up to 1MW
- Virtual PPA option
- Larger systems need approval
GoMEn
For: Government
- Federal & state buildings
- Schools, hospitals, offices
- Special allocation
- Supports RE targets
NEM Eligibility Criteria
You Can Apply If:
- Active TNB account holder
- Property owner or have owner consent
- Suitable roof/space for installation
- Use SEDA registered installer
- Quota still available (NEM)
Documents Required:
- Copy of IC / Company registration
- Recent TNB bill (3 months)
- Property ownership proof / consent
- System design from installer
- Single line diagram
Solar ATAP vs NEM 3.0 FAQ
Is NEM 3.0 still open?
No. NEM 3.0 closed to new applicants on 30 June 2025. Solar ATAP opened on 1 January 2026 with no quota, so new rooftop systems now go through Solar ATAP.
Which is better for a business, Solar ATAP or NEM 3.0?
Solar ATAP is the route for a business in 2026. It allows a bigger system (100% of Maximum Demand vs 75% under NEM) but pays less for exports. A business with high daytime load gains the most, because self-consumed solar saves the full tariff.
What happens to excess credits under NEM vs ATAP?
Under NEM 3.0, unused credit carried forward for up to 24 months. Under Solar ATAP, credit offsets usage in the same billing month only, and unused credit is forfeited.
Can I switch from NEM to Solar ATAP?
Yes, but not at the same time. SEDA accepts Solar ATAP applicants not registered under NEM or SELCO, so you must terminate your NEM contract first. Existing NEM contracts continue until expiry if you stay.
What is the difference between NEM 1.0, 2.0 and 3.0?
NEM 1.0 (2016) paid exports at a displaced-cost rate below retail. NEM 2.0 (2019) moved to a 1:1 offset. NEM 3.0 (2021) added NEM Rakyat, NEM NOVA and GoMEn with a combined quota.
Is NEM available in Sabah and Sarawak?
NEM programs are primarily for Peninsular Malaysia under TNB. Sabah (SESB) and Sarawak (SEB) have their own programs - check with respective utilities.
Moving from NEM to Solar ATAP?
Send us your TNB bill. We size your Solar ATAP system to your daytime load and show the savings under the new export rate. Projects delivered with licensed EPCC partners.