Malaysia Replaces NEM with Solar ATAP Boosting Homeowner Benefits

For years, Malaysian households have benefited from the Net Energy Metering (NEM) program, which helped reduce electricity costs by harnessing solar power. However, this long-running initiative is set to conclude, making way for a new government program—the Solar Accelerated Transition Action Programme (Solar ATAP)—launching on January 1, 2026.

The phasing out of NEM has raised questions among users who relied on its benefits: Is installing solar panels still worthwhile without NEM? The answer is a resounding yes. In fact, for many households, the new Solar ATAP could deliver even greater value.

Solar ATAP, short for Solar Accelerated Transition Action Programme, is Malaysia’s latest rooftop solar initiative, designed to replace the NEM program. As part of the government’s "Green Roof Initiative," it aims to make solar energy more accessible and affordable while accelerating the country’s transition to clean energy.

The key differences lie in how exported solar energy is valued and who stands to benefit the most.

While NEM 3.0 was effective, it had limitations. Participation was restricted by fixed quotas, leaving late adopters unable to join once quotas were exhausted. Solar ATAP addresses these issues by offering:

• Greater flexibility , with no fixed national quotas.
• Inclusivity , potentially extending to sectors like agriculture.
• Alignment with Malaysia’s long-term energy strategy , targeting 70% renewable energy capacity by 2050.

Solar ATAP is not just a replacement but an upgrade, ensuring sustainable and scalable solar adoption.

While final guidelines will be released by December 31, 2025, several confirmed changes distinguish ATAP from NEM.

Under NEM 3.0, exported solar energy offset TNB bills at a 1:1 ratio. Solar ATAP introduces a more nuanced approach:

For residential users:

• Exported energy will be credited at retail-related energy prices instead of wholesale rates.
• Estimated export values:
  • RM 0.27/kWh for households using ≤1,500 kWh monthly.
  • RM 0.37/kWh for households exceeding 1,500 kWh monthly.

For commercial/non-residential users:

• Credits will be based on the System Marginal Price (SMP) , a market-driven rate fluctuating every 30 minutes.

Solar systems under ATAP can now cover up to 100% of maximum demand , allowing households to optimize self-consumption and export value.

Unlike NEM’s strict categories, ATAP removes quota limits and may expand to more user groups over time.

Existing NEM agreements remain unchanged. For new adopters:

• Solar ATAP becomes the default program from January 1, 2026.
• Exported solar energy now holds clear, meaningful value , especially for residential users.

The bottom line: Self-consumption remains the best way to maximize savings, but exported energy is now more valuable than initially expected.

Yes—depending on your household’s energy use. If you:

• Use appliances or work from home during the day.
• Want to hedge against TNB tariff hikes.
• Seek immediate cost savings.

Solar panels already make financial sense through self-consumption. Adding batteries extends savings into the evening, while lease-to-own (RTO) plans eliminate upfront costs entirely.

By replacing NEM with a more flexible framework—and offering higher residential export rates —Solar ATAP ensures solar energy remains a practical, economical choice for Malaysian households. Solar power isn’t disappearing; it’s evolving.