After nearly six months following the end of NEM, Malaysia finally introduced another on-grid solar solution — the Solar ATAP Programme.

With the official launch of the Solar Accelerated Transition Action Programme (Solar ATAP) on 1 January 2026, Malaysia has entered a new era of renewable energy.

Whether you are a homeowner looking to slash your TNB bill or a business owner aiming for ESG compliance, the ATAP SOLAR scheme is the current replacement for the old NEM (Net Energy Metering) system. This guide breaks down the latest 2026 rules, capacity limits, and how to maximize your ROI.

What is the Solar ATAP Programme?

The Solar ATAP programme is the latest rooftop solar initiative governed by SEDA Malaysia. While it shares the same "export" concept as the old NEM, ATAP SOLAR focuses on right-sizing your system for self-consumption.

How it works: The electricity generated by your ATAP SOLAR panels powers your home or factory first. Any surplus energy is sent back to the TNB grid. In return, you receive a credit to offset your energy charges.

Key Difference: Solar ATAP vs. NEM 3.0

Who is Eligible for ATAP SOLAR?

The ATAP scheme is open to all existing TNB-registered customers in Peninsular Malaysia. This includes:

• Residential (Domestic): Landed properties like terrace houses, semi-Ds, and bungalows.
• Commercial & Industrial: Offices, shops, warehouses, and factories.

Note: If you are currently under NEM, you must terminate your existing contract to join Solar ATAP. However, for most current NEM users, it is financially better to remain on your 1:1 contract until the 10-year term ends.

Updated 2026 Capacity Limits

The Suruhanjaya Tenaga (ST) has introduced more flexible sizing for ATAP SOLAR installations to encourage higher self-generation:

1. Residential (Domestic)

• Single-Phase Supply: Up to 5 kW AC.
• Three-Phase Supply: Up to 15 kW AC (An increase from the previous 12.5 kW cap).
• Note: Systems exceeding these limits require a Connection Confirmation Check (CCC) with a RM1,000 fee.

2. Commercial & Industrial

• Capacity: Up to 100% of your Maximum Demand (MD).
• Maximum Cap: 1,000 kW (1 MW) per account.
• Systems above 72 kW require a Connection Assessment Study (CAS) to ensure grid stability.

Understanding the "No Rollover" Billing Rule

The biggest change in the Solar ATAP Programme is the credit treatment.

1. Monthly Reset: Unlike NEM, ATAP credits do not roll over. If you generate more credit than you use in a single month, the excess is forfeited.
2. Limited Offset: Credits only offset the Energy Charge portion of your bill. They cannot be used to pay for the ICPT surcharge, SST, or the KWTBB (1.6%) fund.
3. Variable Rates: Commercial users are credited based on the System Marginal Price (SMP), which fluctuates every 30 minutes, whereas residential users are credited at the prevailing tariff energy rate.

Is ATAP SOLAR Still Worth It?

Yes, but the strategy has changed. In 2026, the goal is no longer to "sell back as much as possible." Instead, you should focus on:

Daytime Usage: Shift heavy appliance use (laundry, EV charging) to solar peak hours (11 AM – 3 PM).

Right-Sizing: Avoid over-installing. Size your ATAP system to match your actual daytime usage to minimize forfeited credits.

Battery Storage: While optional, adding a Battery Energy Storage System (BESS) is now more attractive, as it allows you to store midday excess to use at night rather than losing it to the "no rollover" rule.

Ready to switch to Solar ATAP?

While the "no quota" rule makes it easier to transition to renewable energy, grid slots in mature neighborhoods fill up fast, meaning there is no better time to apply, as early submission remains the best strategy.

Navigating the new 2026 regulations can be complex, but you don’t have to do it alone. Reach out to us for a free consultation today; we will match you with the best-fit solar provider to ensure your ATAP SOLAR system is professionally designed for maximum savings and long-term efficiency.