12/09/2025

KUALA LUMPUR (Sept 12): The government will launch a new rooftop solar initiative this December, allowing consumers to offset their electricity bills with the power generated.

The initiative, dubbed the Solar Accelerated Transition Action Programme (Solar ATAP), is a continuation of the Net Energy Metering (NEM) programme that expired in June, the Ministry of Energy Transition and Water Transformation said in a statement.

Under Solar ATAP, offsets will be calculated at the system marginal price — the wholesale electricity clearing price that fluctuates every 30 minutes — based on the cost of the last power plant dispatched to meet demand.

The previous NEM programme allowed residential homes to offset their bills on a one-to-one basis, covering both energy and capacity charges, with excess daytime generation credited against night-time usage.

Since its expiry, consumers have only been able to register under the Solar for Self-Consumption (SelCo) scheme, which does not allow offsets unless surplus energy is stored in batteries and discharged on demand.

Solar ATAP’s approach is designed for long-term sustainability while previous iterations were limited by time frames and quota allocations.

Guidelines and registration details will be available on the Energy Commission and Sustainable Energy Development Authority websites from Dec 1, with applications opening the same day.

The move comes as electricity costs rise on the back of higher fossil fuel prices and Tenaga Nasional Bhd (KL:TENAGA) invests heavily in grid upgrades to handle more intermittent renewable energy.

Solar reduces reliance on fossil fuels, but the grid still needs backup supply at night and expanded transmission capacity. It is unclear if Solar ATAP will also offset capacity charges, as NEM once did.

Rooftop solar adoption remains low in Peninsular Malaysia at a little above two gigawatts to date, compared with the potential of tens of gigawatts under existing government renewable energy and energy transition road maps.

While a continuation of solar offset programmes would drive adoption, it will benefit everyone who uses more electricity, including those who consume more due to large household size, as well higher income groups who simply use more electrical appliances.

The government has also announced a separate Community Renewable Energy Aggregation Mechanism programme that allows households to lease their rooftop space to generate income from solar and encourage adoption among lower income households.

Source: The Edge Markets