Solar ATAP Malaysia: NEM Replacement Explained

Malaysia is entering a new chapter in its renewable energy journey. The long-standing Net Energy Metering (NEM) scheme, which has helped thousands of households cut their electricity bills, is coming to an end. In its place, a new programme called the Solar Accelerated Transition Action Programme (Solar ATAP) will be launched on 1 December 2025, according to Bernama.

For many Malaysians, NEM has been a familiar name — a scheme that made solar panels more worthwhile by letting homeowners offset their electricity usage with the solar energy they produced (read more about NEM Rakyat 3.0 here). Now, with ATAP on the horizon, homeowners are understandably wondering: Will the savings still be as good? What changes should I expect?

This article will break down what Solar ATAP is, why the government is replacing NEM, and what this means if you’re considering solar for your home.

Short on time? Check out our Quick Guide to Solar ATAP for a fast breakdown of what’s changing from NEM 3.0.

What is Solar ATAP?

Solar ATAP stands for the Solar Accelerated Transition Action Programme — Malaysia’s upcoming rooftop solar initiative designed to take over from the country’s long-running NEM scheme.

Announced under the government’s Green Rooftop Drive, Solar ATAP will officially begin on 1 December 2025, according to Bernama. It is set to continue where the Net Energy Metering (NEM) scheme left off, which officially ended in June 2025, as reported by The Edge.

The programme is intended to keep supporting Malaysian households and businesses in installing solar panels, with the same core goal: making clean energy adoption affordable and accessible. At the same time, ATAP reflects Malaysia’s broader energy transition strategy, helping the nation move towards its long-term renewable energy targets while reducing reliance on fossil fuels.

Why Replace NEM With ATAP?

The Net Energy Metering (NEM 3.0) scheme was widely recognised for making solar more attractive to Malaysians, but it came with its own set of limitations. Participation was capped by fixed quotas, and once these were filled, no new households or businesses could join. Over time, this created uncertainty for homeowners who wanted to adopt solar but missed the quota window.

Solar ATAP was introduced to overcome these barriers. Unlike NEM, which had rigid timelines and limited availability, ATAP is designed with greater flexibility so that more Malaysians can benefit from clean energy without worrying about quota restrictions.

The government has also positioned ATAP as part of the Green Rooftop Drive, signalling a stronger national push to expand renewable energy adoption across the country. This move ties directly into Malaysia’s long-term climate and energy roadmap, which aims for 70% renewable capacity by 2050 — a target highlighted in Bernama.

In short, ATAP is not just a replacement for NEM. It represents a broader effort to simplify solar adoption, make it more inclusive, and align Malaysia with its commitment to a greener, more sustainable energy future.

What Could Change Under ATAP?

While full details of Solar ATAP will only be available once the official guidelines are published, several key changes have already been announced. These suggest that ATAP will work differently from the NEM scheme in some important ways.

One of the biggest changes is the way export credits are calculated. Instead of the near 1-to-1 offset that NEM offered, ATAP will base credits on the System Marginal Price (SMP) — the wholesale electricity clearing price, which fluctuates roughly every 30 minutes. This means that export values will no longer be fixed, but instead reflect real-time market conditions.

Another change relates to system installation size. Under ATAP, users will be allowed to install solar panels up to 100% of their maximum demand — a step that could encourage larger system adoption compared to past restrictions.

ATAP also signals a move towards broader eligibility, potentially extending benefits beyond just residential and commercial users to include sectors like agriculture.

Despite these shifts, the intent behind ATAP is clear: it aims to encourage, not restrict, solar adoption, ensuring more Malaysians can take part in the country’s clean energy transition.

For homeowners, the biggest change to note is the shift to SMP-based credits. In simple terms, this means the value of the electricity you export will vary depending on market conditions instead of being fixed. While this introduces more uncertainty, it also encourages households to use more of their own solar energy directly, which remains the best way to maximise savings.

What Does This Mean for Homeowners?

For homeowners, the launch of Solar ATAP comes with a mix of reassurance and new opportunities.

First, if you’re already on a Net Energy Metering (NEM) agreement, you don’t need to worry. Your existing contract will remain valid, and your credits will continue under the same terms you signed up for (The Edge).

For new adopters, however, ATAP will be the pathway forward starting from 1 December 2025. According to Soyacincau, guidelines and registration will be made available on the official Energy Commission and SEDA Malaysia websites from that date.

The bigger picture is this: whether under NEM 3.0 or ATAP, solar remains a powerful way to cut electricity costs in Malaysia. With tariffs continuing to rise (see the 2025 TNB tariff hike), generating your own clean energy still makes financial sense. For a deeper breakdown of how tariffs work, see our guide on understanding the new TNB tariff.

Is Now Still a Good Time to Go Solar?

The short answer is yes — but it depends on your household’s energy habits.

With NEM closed and ATAP not yet active, new solar adopters currently won’t earn export credits for sending excess energy back to the grid. However, solar still makes strong sense for households with heavy daytime usage. If you run air conditioning, appliances, or even home offices during the day, solar can directly offset those costs through self-consumption.

For families considering a battery system, solar can also extend those savings into the evening, helping reduce reliance on TNB and soften the impact of rising tariffs.

And with Rent-to-Own (RTO) plans, going solar has never been more accessible. You can install panels with zero upfront cost, enjoy full maintenance and warranties, and start saving from day one.

Frequently Asked Questions About Solar ATAP

What happens if I already have NEM 3.0?

If you’re already on the Net Energy Metering (NEM) scheme, your agreement will remain valid. Nothing changes — you’ll continue receiving credits under the same terms as before.

When does Solar ATAP start?

Solar ATAP will officially launch on 1 December 2025, as confirmed by Bernama. From that date, guidelines and registration will be available on the Energy Commission and SEDA Malaysia websites.

How will ATAP credits be calculated?

Unlike NEM’s near 1-to-1 offset system, ATAP will use the System Marginal Price (SMP) — the wholesale electricity price that changes every 30 minutes. This means your credit value will vary with market conditions, but you can still maximise savings by using more of your solar power directly.

Is Solar ATAP better or worse than NEM 3.0?

It depends on your usage. NEM offered more predictable credits, but ATAP is designed to be more flexible and inclusive, covering a wider group of users like agriculture. While export credits may vary under SMP, solar remains cost-saving overall — especially if you focus on self-consumption.

Should I wait for ATAP before going solar?

If you use a lot of electricity during the daytime, solar can already help by offsetting your own usage through self-consumption. Adding a battery can also extend those savings into the night. For these households, it may still make sense to go solar now rather than wait.

The Road Ahead With Solar ATAP

Solar ATAP marks the next chapter in Malaysia’s clean energy journey. By replacing the familiar NEM scheme, it ensures that solar adoption remains a practical and financially viable choice for households.

While some details are still being finalised, one thing is clear: solar is here to stay. Whether you’re looking to cut electricity costs, reduce reliance on the grid, or contribute to a more sustainable Malaysia, solar power continues to be a smart long-term investment.

Looking ahead, Solar ATAP also ties into the nation’s bigger ambitions. With Malaysia targeting 70% renewable energy capacity by 2050, the programme serves as a stepping stone toward a greener, more resilient energy future.

Curious about how Solar ATAP could benefit your home? Try our Solar Savings Calculator for a free estimate today.