Time-of-Use (ToU) Tariff: A Smarter Way to Save on Your Electricity Bill

Electricity costs in Malaysia are changing — and so is the way we manage them.

From 1 July 2025, Tenaga Nasional Berhad (TNB) will roll out its Time-of-Use (ToU) scheme to all registered customers. This updated TNB tariff structure gives you more control over your bill by charging different rates depending on the time of day you use electricity.

In simple terms: use more power during off-peak hours and pay less. It's a smart move for households and businesses alike, especially if you can adjust your routine around electricity peak hours.

Let's break down what ToU means and how it can help you save.

What Is Time-of-Use (ToU)?

Time-of-Use (ToU) is a tariff system where your electricity rates vary depending on the time of day you use energy. The ideal is simple: shift your usage to off-peak hours, when demand the grid is lower — and you'll pay a cheaper rate.

This pricing model isn’t entirely new. But starting 1 July 2025, all TNB customers in Malaysia, including homes and businesses,  can choose to adopt the ToU scheme. It's part of a broader shift to make the TNB tariff system more efficient and reflective of real demand patterns.

What Are Electricity Peak Hours and Off-Peak Hours?

Under the Time-of-Use scheme, each day is divided into two pricing periods:

In short:

• Peak hours (2 PM - 10 PM weekdays) cost more
• Off-peak hours (all other times) cost less

That means you can save simply by shifting high-usage activities like running air conditioners, washing machines, or water heaters — to off-peak times.

Want to dive deeper? Read our breakdown of the new TNB tariff here.

Domestic ToU Scheme: New TNB Tariff Rates From 1 July 2025

Starting 1 July 2025, the TNB Time-of-Use (ToU) scheme introduces a new pricing structure for domestic users. Rates vary depending on how much electricity you use—and when you use it.

Extra Incentives for Lower-Use Households

• Retail charge waived if your usage is 600 kWh or less
• AFA (Automatic Fuel Adjustment) charges waived below 600 kWh/headin
• If you use 1,000 kWh or less, you may qualify for Energy Efficiency Incentives (EEI) — which further lowers your per-unit

Learn more about Malaysia's Energy Efficiency Incentives.

Why Consider Switching to the Time-of-Use Scheme?

1. Save on Monthly Bills Without Cutting Usage

The key advantage of off-peak electricity rates? You can use the same amount of power—but pay less.

Example:

Run your washing machine, air conditioner, or water heater before 2 PM or after 10 PM, and you could pay 4–10 sen per kWh.

2.  Businesses Can Cut Operating Costs

The ToU scheme isn't just for homes. If you run a small factory, shop, or office, shifting high-energy activities outside of electricity peak hours can lead to substantial savings.

For instance, factories that operate at night or early mornings may see dramatic cost reductions.

3. Support Malaysia's Energy Transition

ToU doesn't just help your wallet. It also supports Malaysia's National Energy Transition Roadmap (NETR) by easing grid demand and encouraging smarter, more sustainable electricity use.

How to Switch to the Time-of-Use (ToU) Scheme

Switching to the ToU scheme is optional, but if you're ready to take control of your electricity bill, here’s how to get started:

Where to Apply

• Email: [email protected]
• In-Person: Visit your nearest Kedai Tenaga
• Online: Via the myTNB portal or app (coming soon)

What You’ll Need

• Completed Tariff Contract Change Form
• MyKad / Police / Army ID / Passport (individuals)
• Company registration certificate (for businesses)
• Authorisation letter (if applying on behalf of someone else)

Fees to Expect

• RM10 stamp duty (charged on next bill)
• 8% service tax (only if billing period is under 28 days)

When Does the ToU Tariff Take Effect?

The Time-of-Use tariff can only start once a smart meter is installed and activated. Here's what to expect:

• Smart meter already active?
• Your ToU switch will be completed in 5 working days.
• No smart meter yet (or not activated)?
• The full process, including installation may take up to 2 months

Note: Delays may occur in areas with weak telecom signals, as meters require reliable connectivity to track time-based usage.

How Solar Exports Work With ToU and NEM Rakyat

If you've installed solar and are part of NEM Rakyat,  switching to the Time-of-Use tariff means your exported solar energy is offset in time-based order:

1. First against peak usage (most expensive)
2. Then off-peak usage
3. Remaining exported energy is banked as NEM balance

Example: How Solar Export Offsets Work

Can You Switch Back to the General Tariff?

Yes — switching to ToU isn't permanent. If you find it doesn't suit your energy habits, you can return to the General Tariff.

• It's recommended to try at least one full billing cycle before deciding
• A RM10 stamp duty applies when switching back

This flexibility makes ToU low-risk and easy to try.

Want Even More Control Over Your Electricity Bill?

Time-of-Use is a smart step. But combining it with solar? That's long-term energy freedom.

With GetSolar’s Rent-to-Own (RTO) plans, you get:

• RM0 upfront — no big installation costs
• Guaranteed monthly savings
• Full ownership in 5 or 10 years
• Protection from AFA and rate hikes

Take Charge of Your Energy Future

The Time-of-Use (ToU) tariff puts control back in your hands. By shifting when you use electricity — or combining ToU with a solar setup — you can enjoy lower bills without sacrificing comfort.

It's a practical step toward energy independence and a smarter way to manage rising electricity costs.

Curious how solar fits into the picture?

Use our Solar Calculator to get a personalised estimate in seconds and find out how much you could save with solar + ToU.