Solar financing in Malaysia comes in four forms: outright purchase, a bank solar loan, solar leasing, and a zero-capex power purchase agreement (PPA). Each option changes who owns the system, who pays upfront, and who carries the performance risk. This guide compares all four for business owners.
1. Solar financing options at a glance
| Option | Upfront cost | Who owns the system | What you pay |
|---|---|---|---|
| Outright purchase | Full capex | You | Nothing after handover, apart from O&M |
| Solar loan | Down payment set by the bank | You | Fixed monthly instalment |
| Solar leasing | None or low | Investor during the lease, you after it ends | Fixed monthly lease |
| Zero-capex PPA | None | Investor | A rate per kWh of solar generated |
SEDA defines a PPA as an arrangement where the site owner pays per kWh generated and the investor owns the system, and solar leasing as a fixed monthly payment with ownership passing to the site owner after the lease. [Source: SEDA]
2. Outright purchase
Outright purchase gives the highest lifetime savings, since every kWh the system produces is yours from day one. Your company also holds the asset for tax purposes. Companies investing in qualifying solar assets claim the Green Investment Tax Allowance (GITA) through MIDA. Read our GITA solar guide and confirm the tax treatment with your tax advisor.
Outright purchase suits a business with a strong cash position, a building it owns, and a plan to stay on site for the life of the system.
3. Solar loan and green financing
Malaysian banks offer green financing for solar PV, with the system paid off in monthly instalments. You own the system from the start and keep the savings after the loan ends.
The Green Technology Financing Scheme (GTFS 5.0), run by MGTC, is open until 31 December 2026 with an RM1 billion financing allocation. [Source: KPMG] The Edge reported in October 2026 the rebate and financing support for solar projects are absent from GTFS 5.0. [Source: The Edge] Confirm with MGTC and your bank whether your solar project qualifies before you plan around GTFS.
To apply for a solar loan, prepare your SSM documents, recent financial statements and bank statements, the solar quotation, and your latest TNB bills. Your bank sets the final list.
4. Solar leasing
Solar leasing gives you a fixed monthly payment for use of the system, and ownership passes to you once the lease ends. The payment stays the same whether the month is sunny or cloudy, so your budget stays predictable.
Malaysia offers a Green Income Tax Exemption for solar leasing to qualifying providers listed in SEDA's Registered Solar PV Investor directory. [Source: The Edge] Ask any leasing provider to show its listing.
5. Zero-capex PPA
A zero-capex PPA puts solar on your roof with no upfront cost. The investor designs, installs, owns and maintains the system. You pay an agreed rate for each kWh the system generates, usually set below your TNB tariff.
SEDA lists two PPA structures under Solar ATAP:
- Direct contract: a two-party agreement between you and the investor, with payment collected between you.
- SARE (tripartite): you, the investor and TNB sign together. TNB collects the PPA payment through your electricity bill and charges a service fee of 2 sen/kWh. If the amount goes unpaid, TNB has the right to disconnect supply under Section 29 of the Electricity Supply Act.
Jana Bina Makmur offers both outright purchase and zero-capex PPA for commercial and industrial sites. Read more on our commercial solar installation page.
6. How to compare outright purchase and zero-capex offers
Compare offers on the same basis. Ask each provider for these points in writing:
- Total cost over the contract, not the first-year saving.
- PPA rate per kWh against your current TNB tariff, plus any yearly escalation clause.
- Contract length and end terms: buyout price, transfer to you, or removal.
- Maintenance, insurance and inverter replacement: who pays for each.
- Tax position: who claims GITA and capital allowances. Check with your tax advisor.
- Savings assumptions: self-consumption ratio, SMP export rate, and panel degradation.
- Early termination: what happens if you move out or sell the building.
- Investor listing: whether the investor appears in SEDA's Registered Solar PV Investor directory.
Bottom line
Pick solar financing by your cash position and how long you plan to stay in the building. Outright purchase and a solar loan give the biggest savings over time. Solar leasing and a zero-capex PPA protect your cash and move maintenance to the provider. Use the solar cost calculator for a first estimate, then ask for a side-by-side offer.
Frequently asked questions
Can I get solar with no upfront cost in Malaysia?
Yes. A zero-capex power purchase agreement (PPA) or a solar lease puts solar on your roof with no upfront payment. Under a PPA you pay per kWh generated. Under a lease you pay a fixed monthly amount and own the system after the lease ends.
What is the difference between solar leasing and a PPA?
Solar leasing charges a fixed monthly amount, and the system becomes yours when the lease ends. A PPA charges a rate per kWh generated, and the investor keeps ownership of the system.
How do I apply for a solar loan?
Apply through your bank with your SSM documents, recent financial statements and bank statements, the solar quotation and your latest TNB bills. Your bank sets the final document list and the down payment.
Is there a solar installment plan in Malaysia?
Yes. Banks offer green financing with monthly instalments, and solar leasing gives a fixed monthly payment. Some installers also offer credit card instalment plans for smaller systems.
Does GTFS cover solar in 2026?
GTFS 5.0 is open until 31 December 2026. The Edge reported in October 2026 the rebate and financing support for solar projects are absent from GTFS 5.0, so confirm eligibility with MGTC and your bank.