Solar ATAP vs NEM 3.0: 2026 Comparison Guide

Key Takeaways:
Solar ATAP replaced NEM 3.0 for all new installations from 1 January 2026. Exported energy now offsets only the energy charge portion of your TNB bill (around RM0.27–RM0.37/kWh), not the full retail value, and unused credits reset every month with no rollover. Self-consumption is where the savings now sit, and a well-sized system still pays back in roughly five to eight years.

If you researched solar a year ago and remember a clean, 1-to-1 export deal with TNB, those rules no longer apply to new installations. Malaysia switched to Solar ATAP on 1 January 2026, and the financial logic of a rooftop system has shifted with it.

The core change is  how your exported power is valued. Under the old NEM 3.0 rules, every unit you sent to the grid during the day cancelled out a unit you drew back at night at full retail rate. Under Solar ATAP, exported energy is worth less, credits expire at the end of each month, and your return depends on how much solar power you actually consume in real-time during the day.

Solar still makes financial sense for most homeowners, but the strategy for sizing and using a system has changed. Here is how the new rules work.

The Shift from NEM 3.0 to Solar ATAP

For years, Malaysia’s solar framework relied on a national quota system. Under NEM 3.0 (specifically the NEM Rakyat program for residential properties), the government allocated a fixed total capacity. Homeowners had to apply before that specific allocation filled up.

That framework closed to new applications in mid-2025. As of 1 January 2026, the Ministry of Energy Transition and Water Transformation (PETRA) and SEDA Malaysia have replaced it with Solar ATAP (Solar Accelerated Transition Action Programme).

The primary benefit of the new programme is access, since there is no national quota limit, any eligible TNB account holder can apply year-round without worrying about an application window closing. The trade-off lies in how your excess electricity is credited.

Note for existing users: If your home was already connected under NEM 3.0 before the cutoff, your contract terms are unaffected. You keep your 1-to-1 offset for the remainder of your 10-year contract.

How did NEM 3.0 work?

NEM 3.0 was popular because the billing process was easy to understand. Your panels generated electricity during the day, your home consumed what it needed, and any surplus flowed back into the TNB grid.

For residential users, TNB credited that exported power on a 1-to-1 basis. If you exported 1 kWh of surplus during a sunny afternoon, it directly offset 1 kWh you imported at night, valued at your full retail tariff rate. Unused credits rolled over month to month to cushion future bills.

The main constraints were system size caps: 4 kWac for single-phase homes and 10 kWac for three-phase systems. Because NEM rewarded total generation, the more you produced and exported, the more you saved.

How Does Solar ATAP Work?

Solar ATAP shifts the focus from maximum export to self-consumption. The financial model is designed so that a unit of solar power is worth the most when used the moment it is generated, not when it is sold back to the grid.

Three specific rules now dictate your returns:

• Credits only offset the raw energy charge: Your TNB bill is made up of distinct components, including the energy charge (the per-kWh portion), the capacity charge, and the network charge. Solar ATAP credits apply to the energy charge. Because exported power  does not offset structural  grid access fees, an exported unit is worth less than one you consume directly.
• Credit reset monthly: Any surplus credits you earn can only be used within that calendar month. At the end of the month,  remaining credits expire as there is no rolling balance, no cash payouts, and credits cannot be applied to non-energy charges like KWTBB (Kumpulan Wang Tenaga Boleh Baharu, a statutory renewable energy fund contribution on your bill).
• You can only offset what you imported: If your exported solar credits exceed the cost of energy you actually drew from the grid that month, the excess value is forfeited.

On the upside, capacity limits have increased to give you more headroom for heavier daytime loads: 5 kW for single-phase properties and 15 kW for three-phase properties.

Sources: SEDA Malaysia, PETRA, myTNB Solar ATAP portal (2026)

What is Your Exported Energy Actually Worth Now?

Your Solar ATAP export credit is tied directly to the energy charge tier of your monthly TNB usage:

Source: TNB domestic tariff schedule, July 2025 revision

Compare that to a unit you consume directly. When you use your own solar at noon, you avoid the energy charge plus the AFA (Automatic Fuel Adjustment) surcharge on that unit, a variable levy that rises when global fuel costs push up TNB's generation costs. A self-consumed kWh is simply worth more than an exported one.

To maximise returns, shift heavy energy tasks like washing machines, water heaters, and initial air-conditioning cooldowns into daylight hours when your panels are producing.

Is Solar Still Worth It Under Solar ATAP?

For most landed homes, yes but the system needs to be sized differently.

If you oversize a system on the old assumption that you can bank endless export credits, you will end up paying for panels that generate power nobody uses. Instead, systems should be sized to match your actual daytime baseline.

A landed home in Selangor consuming around 1,200 kWh per month with regular daytime occupancy will use the bulk of its generation directly, wiping out the energy charge before exporting much surplus. At current tariff rates, a properly sized system like this still reaches full payback within five to eight years and continues operating for over two decades after that.

Addressing Night-Heavy Usage and Upfront Costs

If your household is empty during the day and your energy use peaks at night, two options help maintain the financial benefit.

Battery Storage: A hybrid solar system with a battery captures midday solar generation and stores it for evening use. While the upfront cost is higher, it converts power that would otherwise be exported at lower value into power that offsets expensive nighttime imports.

Alternative Financing: If upfront capital is the main barrier options like GetSolar’s Rent-to-Own plan lets you start saving without a large cash outlay typically structured as a fixed monthly fee with zero down payment, covering the system, maintenance, and a performance guarantee for the duration of the agreement.

For a closer look at what a system actually costs across different house types, see our complete guide to solar panel costs in Malaysia for 2026.

The Rules May Have Changed. The Case for Solar Didn't.

Solar ATAP means you can no longer treat a rooftop system as a passive credit generator. Homes are now rewarded for aligning energy use with daylight hours and are penalised for oversized systems built around  an outdated model.

However, as utility tariffs continue to rise, generating your own power remains an effective way to lower fixed household expenses, as long as the system is designed around your actual usage patterns.

Run the numbers with our solar savings calculator or chat with the team on WhatsApp whenever you're ready.