Solar ATAP Malaysia 2026: The Ultimate Guide to the New Solar Scheme & Rebates

If you are a homeowner or business owner in Malaysia looking to cut electricity bills, you have likely heard the term "Solar ATAP."

While atap literally means "roof" in Malay, in 2026 it refers to something much more specific: the Solar Accelerated Transition Action Programme (Solar ATAP). This is the Malaysian government's newest initiative to replace the popular Net Energy Metering (NEM) 3.0 scheme. Whether you are searching for "solar atap price", "how does solar work," or "solar rebates," this guide covers everything you need to know to start saving today.

What is Solar ATAP Malaysia?

Solar ATAP (Solar Accelerated Transition Action Programme) is the Malaysian government's rooftop solar scheme introduced by PETRA and active since 1 January 2026, replacing the Net Energy Metering (NEM) 3.0 programme that ended on 30 June 2025. The Malay word atap means "roof", and the programme's goal is to accelerate domestic and commercial rooftop solar adoption across the country.

Under Solar ATAP, you generate your own electricity, consume it first, and export surplus energy to the TNB grid for a credit on your bill. Unlike NEM 3.0, which ran on fixed quota tranches that filled quickly, Solar ATAP operates as an open-access programme without a fixed national quota for system installations.

What is the Difference Between NEM 3.0 and ATAP?

This is the most critical question for prospective solar buyers. While both schemes allow you to export excess solar energy to Tenaga Nasional Berhad (TNB), the value of that energy has changed.

Under NEM 3.0, the offset was "1-to-1." If you exported 1kWh, you got a credit worth 1kWh of usage.

Under Solar ATAP, the offset is based on the System Marginal Price (SMP).

Solar ATAP Rebates & Subsidies in 2026

Malaysia offers targeted financial support through the SuRIA Home rebate for households and the Green Investment Tax Allowance (GITA) for commercial entities. There is no individual income-tax credit for residential solar installations.

• SuRIA Home (Residential): Offers domestic users installing under Solar ATAP a cash rebate of RM600 per kWac, capped at RM3,000 per household (achieved at a 5 kWac system capacity). Funded with RM150 million, it covers an estimated 50,000 homes and operates from 1 June to 31 December 2026 or until the 250 MW national quota is fully allocated.
• GITA (Commercial & Industrial): Businesses investing in qualifying green technology can claim a 60% tax allowance on qualifying capital expenditure under MIDA's framework, while BESS installations qualify for up to 100% allowance through 31 December 2026.

How Does Solar ATAP Work?

The Solar ATAP mechanism is designed to prioritize Self-Consumption (SelCo). Here is the step-by-step process:

1. Generation: Your rooftop solar panels generate electricity during the day.
2. Consumption: Your home or business uses this free electricity immediately (e.g., for air conditioning, fridge, office lights). This is the biggest saving because you avoid paying the high TNB tariff rate.
3. Export: If you generate more than you use, the excess flows back into the TNB grid.
4. Credit: You are credited for this exported energy based on the SMP (Time-of-Use average price). This credit is used to reduce your electricity bill at the end of the month.

Pro Tip: Because the export rate (SMP) is generally lower than the import rate (what you pay TNB), the best strategy with Solar ATAP is to size your system correctly to match your daytime usage, or consider a battery storage system to store excess power for use at night.

Is There a Solar ATAP Quota?

No fixed national quota applies to Solar ATAP itself — that is the key difference from NEM 3.0's limited, first-come-first-served tranches. The exception is the SuRIA Home rebate, which is quota-based: 250MW or the 1 June – 31 December 2026 window, whichever ends first.

Am I Eligible?

Solar ATAP covers residential and commercial/industrial customers. Residential systems can go up to 5kW (single-phase) or 15kW (three-phase); C&I systems can cover up to 100% of maximum demand.

How to Apply for Solar ATAP

1. Engage a registered photovoltaic service provider (RPVSP) — they design and quote the system.
2. The provider submits the Solar ATAP application through the official channels (SEDA/TNB).
3. TNB approves the grid connection and installs the bidirectional meter.
4. Claim the SuRIA Home rebate where eligible (households, quota-based).

Summary: Is Solar ATAP Worth It?

Yes. Even though the export rate has changed compared to NEM 3.0, electricity tariffs in Malaysia are rising. Generating your own free electricity remains one of the best investments you can make to hedge against future inflation.

Why install Solar ATAP now?

• Tax Incentives: Businesses can still capitalize on Green Investment Tax Allowances (GITA).
• Property Value: Solar panels increase the resale value of your property.

Immediate Savings: You drop from the expensive "Tier 3" electricity tariff (high usage) to lower tiers immediately.

Solar ATAP FAQ

What is Solar ATAP?

Solar Accelerated Transition Action Programme is Malaysia's main rooftop solar framework managed under PETRA, replacing NEM 3.0 as of 1 January 2026.

Did Solar ATAP replace NEM 3.0?

Yes. NEM 3.0 closed on 30 June 2025, and Solar ATAP took effect on 1 January 2026. Legacy NEM installations retain their original 10-year contract terms.

How much is the solar rebate in Malaysia in 2026?

The SuRIA Home program provides RM600 per kWac, capped at RM3,000 for domestic consumers, running from 1 June to 31 December 2026 (or until the 250 MW allocation is reached).

Is there an individual solar tax credit in Malaysia?

No. Individual income tax credits for solar do not exist. Residential support is delivered via the SuRIA Home cash rebate, whereas corporate entities use the GITA tax incentive.

What pricing do I receive for exported energy under ATAP?

Residential accounts are credited at the energy charge rate, while C&I accounts receive the System Marginal Price (SMP).

What happens after the 10-year ATAP contract ends?

The system transitions into a self-consumption model under the SelCo framework, where generated electricity is consumed on-site without further grid export credits.

Want a system sized for Solar ATAP and the SuRIA rebate? Plus Xnergy designs residential and business solar + battery packages under the
2026 rules — talk to us or call 03-8993 9050.