Malaysia Solar Policy: What Homeowners Should Know
Understand Malaysia’s residential solar regulations, approval requirements and what to consider before installing solar panels.
Thinking of Installing Solar Panels in Malaysia?
Solar energy is becoming an increasingly attractive option for Malaysian homeowners looking to manage electricity costs and reduce their reliance on grid electricity.
However, before installing solar panels, it is important to understand the regulations, application requirements and government programmes that may apply to your property.
One important thing to know is that solar policies differ between Peninsular Malaysia, Sabah and Sarawak.
Each region has its own electricity arrangements, solar programmes and incentive requirements.
Here’s a simple guide to help you understand the current residential solar landscape in Malaysia.
Understanding Malaysia’s Residential Solar Programmes
Malaysia has introduced several programmes to encourage the adoption of rooftop solar.
Depending on your location, you may be able to generate electricity for your own use, export eligible surplus electricity to the grid or apply for financial incentives.
Here is an overview of the main residential programmes.
| Region | Main Solar Programme | Published Financial Incentive |
|---|---|---|
| Peninsular Malaysia | Solar ATAP | SuRIA Home rebate up to RM3,000 |
| Sabah | Solar Rakyat Sabah | Solar Rakyat incentive up to RM4,000 |
| Sarawak | Sarawak Energy NEM | Residential subsidy up to RM12,000 |
The incentives listed above are subject to eligibility, application periods and available funding. They are separate regional programmes and cannot be assumed to apply nationwide.
Peninsular Malaysia: Solar ATAP
For homeowners in Peninsular Malaysia, the Solar Accelerated Transition Action Programme (Solar ATAP) took effect on 1 January 2026.
It succeeded the earlier Net Energy Metering (NEM) programme for new applications.
Under Solar ATAP, eligible homeowners can generate electricity using rooftop solar panels, consume solar electricity directly and export eligible surplus electricity to the grid for bill credits.
The published standard residential capacity limits are:
| Electricity Supply | Standard Capacity Limit |
|---|---|
| Single-phase | Up to 5 kWac |
| Three-phase | Up to 15 kWac |
Larger systems may require additional technical assessment and approval.
What About Government Rebates?
Eligible residential customers may also qualify for the SuRIA Home incentive, offering RM600 per kWac, up to a maximum of RM3,000, subject to programme conditions and available allocation.
The announced programme period runs from 1 June to 31 December 2026, or until the allocation is exhausted, whichever comes first.
Official References:
- SEDA Malaysia – Solar ATAP Programme
- SEDA Malaysia – Solar ATAP Guidelines
- SEDA Malaysia – SuRIA Home Incentive
Sabah: Solar Rakyat Sabah
Homeowners in Sabah follow a different solar framework administered by the Energy Commission of Sabah (ECoS).
The Solar Rakyat Sabah programme supports eligible residential solar installations, allowing households to generate electricity for their own consumption and receive credits for eligible surplus electricity exported to the grid.
The published standard residential capacity limits are:
| Electricity Supply | Standard Capacity Limit |
|---|---|
| Single-phase | Up to 5 kWac |
| Three-phase | Up to 10 kWac |
Sabah also introduced the Solar Rakyat incentive, offering RM1,000 per kWac, up to a maximum of RM4,000 for qualifying single-phase domestic installations.
Eligibility, application procedures and available allocation are subject to ECoS requirements.
Official References:
- ECoS – Solar Rakyat Sabah FAQs
- ECoS – Solar Rakyat Incentive
Sarawak: Net Energy Metering (NEM)
Sarawak operates its own Net Energy Metering (NEM) programme through Sarawak Energy.
Under the programme, eligible customers can install solar PV systems, use solar generated electricity and export eligible surplus electricity to the grid according to the applicable NEM arrangements.
Sarawak Energy publishes the following standard capacity limits:
| Electricity Supply | Standard Capacity Limit |
|---|---|
| Single phase | Up to 10 kWac |
| Three phase | Up to 30 kWac |
Additional technical requirements may apply to larger systems.
What About Solar Subsidies?
Sarawak Energy has announced financial assistance for qualifying residential NEM installations.
| Approved Solar Capacity | Published Subsidy |
|---|---|
| 2–3.5 kWac | RM8,000 |
| Above 3.5–6 kWac | RM10,000 |
| Above 6–50 kWac | RM12,000 |
The subsidy is subject to eligibility requirements, including qualifying residential property types, programme dates and available allocation.
Homeowners should confirm the latest programme status directly with Sarawak Energy before making an installation decision.
Official Reference: Sarawak Energy – Net Energy Metering Scheme
What Should Homeowners Check Before Installing Solar?
Regardless of where you live in Malaysia, several important factors should be reviewed before proceeding.
Your Property Type
Landed homes, condominiums and other residential properties may have different installation requirements.
Electricity Supply and Usage
Your single phase or three phase supply, electricity consumption and available roof space help determine a suitable system capacity.
Solar Programme Eligibility
Different programmes have different application procedures, export arrangements and capacity limits.
Qualified Installation and Electrical Safety
Solar installations should be designed and installed in accordance with applicable Malaysian regulations and technical requirements.
Government Incentives
Not every homeowner automatically qualifies for a rebate or subsidy. Always check eligibility, deadlines and available allocation.
Product and Installation Warranty
Understand the equipment specifications, warranty coverage and after sales support before accepting a quotation.
Does Every Solar System Qualify for Government Incentives?
No. Government incentives depend on the applicable programme and its eligibility requirements.
For example, a homeowner installing solar panels in Kuala Lumpur would generally follow the relevant Peninsular Malaysia framework, while homeowners in Sabah or Sarawak would need to refer to their respective regional programmes.
The size of the solar system alone does not determine eligibility.
Application dates, electricity account details, installation requirements and programme conditions may also affect whether a customer qualifies.
It is important to understand the difference between solar system capacity measured in kWp and inverter capacity measured in kWac, as some programme limits and rebates are based on kWac.
Explore Solar Solutions with Solar Nation
Understanding the applicable solar policy is an important first step before choosing a system.
At Solar Nation, we help homeowners explore suitable solar solutions based on their electricity usage, property conditions and energy requirements.
As an official distributor of Haier Energy, Solar Nation offers solar PV and smart energy solutions supported by consultation, system recommendations, installation and after-sales assistance.
Home solar packages start from RM16,300, before applicable government rebates.
Package availability, service coverage and installation arrangements may vary by location.
Ready to explore solar for your home?
Frequently Asked Questions
No. Solar ATAP applies to eligible customers in Peninsular Malaysia. Sabah and Sarawak have separate solar programmes and requirements.
You may qualify for an incentive depending on your location, property, electricity account and the applicable programme’s eligibility conditions.
Yes. kWp refers to the rated capacity of solar panels, while kWac refers to the AC output capacity of the inverter or system. Some solar programmes use kWac when setting capacity limits or calculating incentives.
Approval requirements depend on your location, property type and solar programme. It is important to confirm the relevant procedures before installation.
Useful References
- SEDA Malaysia – Solar ATAP
- SEDA Malaysia – SuRIA Home Incentive
- Energy Commission of Sabah – Solar Rakyat Sabah
- Energy Commission of Sabah – Solar Rakyat Incentive
- Sarawak Energy – Net Energy Metering Scheme
Programme guidelines, eligibility and incentive availability may change. Please refer to the official government websites for the latest information.
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