Does TNB's New Tariff Impact Solar Savings?

Have you been wondering if your solar savings just disappeared with TNB’s new tariff? You’re not alone. Since July 2025, TNB has rolled out a new electricity tariff structure that changes how bills are calculated — adding new fixed charges, daily adjustments, and different credit values for solar exports. For many Malaysian homeowners, this raised an important question: is solar still worth it?

The short answer is yes — but the way you calculate your savings has changed. While some solar adopters worry that their return on investment (ROI) may now take longer, the reality is that solar continues to offset rising electricity bills, especially if your system is well designed and positioned.

In this article, we’ll explain how the new TNB tariff affects solar savings, why sun orientation plays a big role in maximising your system’s output, and how you can still make solar financially work for your home.

Understanding TNB’s New Tariff Structure‍

From July 2025, TNB introduced a new way of calculating electricity bills. Instead of one fixed unit rate, your bill now includes charges for generation, capacity, network, retail, and a new Automatic Fuel Adjustment (AFA). Unlike the old ICPT, which was adjusted every six months, AFA changes daily and is reflected in your monthly bill. You can explore the full details of this change in our guide to the new TNB tariff structure.

For homeowners, this means more fluctuating bills, especially if usage exceeds 1,000 kWh/month. TNB has also introduced an optional Time-of-Use (ToU) tariff where electricity costs more during peak hours but less at night.‍

What the New Tariff Means for Solar Savings‍

With the introduction of TNB’s new tariff in July 2025, many homeowners began asking the same question: “Will my solar savings disappear?”

The concern comes down to two main changes:

• Automatic Fuel Adjustment (AFA): Unlike the old ICPT that adjusted every six months, the new AFA shifts daily and is billed monthly. This makes electricity costs less predictable — and raised fears that solar export credits would be worth less.
• New Tariff Breakdown: Bills now include fixed costs for generation, capacity, and retail. Some users worried these “non-energy” charges would reduce the value of producing your own solar electricity.

But here's the bigger picture: solar still offsets costs in two important ways.

1. It directly reduces how much electricity you import from TNB during the day.
2. Even if NEM credits fluctuate, exporting excess solar still reduces your effective monthly bill.

The reality is that while the calculation method has changed, the value of solar hasn’t disappeared. In fact, with tariffs becoming more complex and fuel adjustments more volatile, generating your own electricity makes you less exposed to sudden cost swings.

How Solar Still Offsets Your Electricity Costs‍

While tariff changes have raised concerns, real TNB bills from Malaysian homeowners show that solar continues to deliver substantial savings. Before we look at case studies, let’s clarify the key terms you’ll see on a solar bill:

• Solar Energy Generated: The total electricity your panels produced during the month (measured in kWh).
• Energy Exported to TNB (Penjanaan): Extra electricity you didn’t use in your home, which was sent back to the grid. Under NEM, this earns credits.
• Energy Imported from TNB: Electricity drawn from the grid, usually at night or during cloudy/rainy days.‍
• Solar Energy Used Directly: The portion of solar power used in your home during the day before any excess is exported.

Savings Formula:

Your savings come from two parts:

1. Daytime Offset: Solar electricity used directly in your home = TNB units you didn’t have to buy.
2. Export Credits: Extra solar exported to TNB = NEM credits reducing your bill.

Total Savings = (Daytime Offset Value) + (Export Credit Value)

Case Study: Mr A (July 2025)

• Solar generated: 791 kWh
• Exported to TNB: 449 kWh (excess sent to grid)
• Used directly at home: 342 kWh‍
• Imported from TNB: 1,133 kWh

Bill impact:

• If all 1,475 kWh came from TNB: RM774.88
• Actual TNB bill: RM560.85

Savings:

• Daytime solar offset = RM214.05
• Export to TNB = RM415.05
• Total = RM629.10 (81% savings)

Takeaway: Even though his household used more than usual, solar reduced the bill by over 80%.

Case Study: Mr V (July 2025)

• Solar generated: 986 kWh
• Exported to TNB: 721 kWh
• Used directly at home: 265 kWh‍
• Imported from TNB: 1,267 kWh

Bill impact:

• If all 1,532 kWh came from TNB: RM963.75
• Actual TNB bill: RM664.10

Savings:

• Daytime solar offset = RM319.65
• Export to TNB = RM415.05
• Total = RM734.70 (76% savings)

Takeaway: Even with lower usage compared to his pre-solar bills, Mr. V cut three-quarters of his cost — proof that exports under NEM still add strong value.

What These Case Studies Show‍

Both examples prove that solar continues to offset electricity costs under the new TNB tariff structure. Savings vary depending on:

• Seasonal sun movement (June and July typically generate less due to the sun’s position and monsoon cloud cover).
• Household consumption patterns (higher usage = more offset value from solar).
• System size and roof orientation (limited roof space may reduce panel count, but proper alignment maximises efficiency).

Even with variations, the numbers clearly show that homeowners are cutting 70–80% of their electricity costs compared to paying TNB rates alone. And with GetSolar’s Rent-to-Own solar plans in Malaysia, these savings can often cover the monthly instalments, making solar accessible without heavy upfront costs.

The Importance of Sun Orientation for Maximum Output‍

One factor that often gets overlooked in the solar conversation is sun orientation. While tariffs and bills may grab headlines, the way your panels face the sun has just as much impact on your savings.

Take the example of the below system, where generation varied month-to-month due to seasonal sun movement:

• March: ~1,174 kWh
• May: ~1,005 kWh
• June: ~883 kWh (lowest, sun shifted northwards)
• July: Recovery as sun angle improved

These fluctuations are natural. As the sun’s position shifts across the year, the angle and intensity of sunlight hitting panels changes, directly affecting production.

• June–July: Sun rises further north → south-facing panels capture less.
• Aug–Apr: Sun swings south → higher generation.
• Dec–Jan (monsoon): Cloud cover + shorter days → reduced output.

It’s also important to note that one underperforming panel (shading, dirt, misalignment) can drag down output for the system. That’s why professional installers emphasise proper orientation and regular upkeep, see our full guide on solar installation and maintenance in Malaysia for practical tips.

‍Key takeaway: Even with seasonal dips, a well-oriented system ensures consistent long-term savings and shortens ROI.

Bringing It Together: Smart Solar Planning in Malaysia‍

The new TNB tariff has understandably caused concern, but it doesn’t mean solar is no longer viable. The key is to adapt:

• Understand your bill.
• Reduce reliance on the grid.
• Install panels with optimal orientation.

Solar continues to offer Malaysians a way to take control of rising energy costs and protect their finances.

So, Is Solar Still Worth It Under TNB’s New Tariff?

TNB’s new tariff structure has undoubtedly changed the way Malaysians think about their electricity bills. While the breakdown of charges and the daily AFA adjustment have raised concerns, the evidence is clear: solar still delivers strong financial benefits.

At GetSolar, we make the transition to clean energy simple and affordable. With our Rent-to-Own plan in Malaysia starting from RM267/month with zero upfront cost, you can begin enjoying savings immediately — plus full warranty and maintenance included.

Curious how much you could save? Try our Solar Savings Calculator today to get a free, personalised estimate for your home.