Which Commercial Solar Financing Option Is Right for Your Business in Malaysia?
A commercial solar photovoltaic (PV) system can deliver significant long-term electricity cost savings for businesses in Malaysia, but choosing the right financing model is just as important as choosing the right system size, rooftop design and solar partner.
Choosing the right solar financing option is no longer just about comparing prices. For businesses in Malaysia, the decision also depends on how Solar ATAP applies to your premises, what green financing schemes are available, the current interest rate environment, potential tax incentives, and how much capital your business wants to preserve for day-to-day operations or future growth.
Whether you are considering a bank loan, Power Purchase Agreement (PPA), or solar leasing arrangement, each option can support your move to solar. The key is understanding how each model affects your ownership, monthly commitments, return on investment, cash flow and risk, so you can choose the structure that fits your business best. In this guide, we compare the three (3) financing models, show indicative cost examples and explain how Malaysian businesses can choose a structure that best suits their financial objectives, energy consumption profile and long-term investment strategy.
Why Commercial Solar Financing Matters
The financing model you choose can have a significant impact on your business’s cash flow, return on investment, and overall project economics. It can influence:
- Initial capital expenditure
- Monthly cash flow
- Ownership of the solar PV system
- Eligibility for GITA, GITE or other green technology incentives
- Interest rate, profit rate, lease rental or PPA tariff exposure
- Return on investment (ROI) and payback period
- Maintenance and operational responsibilities
- Balance sheet and financial reporting considerations
- Solar ATAP sizing, export credit and self-consumption strategy
Understanding these differences will help you choose a financing structure that aligns with your financial objectives and long-term business goals.
Solar ATAP 2026: Why It Matters for Commercial Solar Financing in Malaysia
Solar ATAP, or the Solar Accelerated Transition Action Programme, is Malaysia’s rooftop solar programme introduced following the end of the Net Energy Metering (NEM) framework. For commercial and industrial users, Solar ATAP makes system sizing and financing structure more important because the financial outcome depends not only on the installed capacity, but also on how much solar energy the business can consume during the same billing period.
Under Solar ATAP, excess energy that is not consumed may be exported to the grid and used as a bill credit within the same billing period, up to the applicable limit. Any exported energy that is not used for offset in that same billing period will not be carried forward to later billing periods and will be deemed forfeited. For non-domestic consumers, the export credit is based on the Average System Marginal Price (Average SMP), while domestic consumers use the applicable Energy Charge.
This means businesses should avoid financing a system that is oversized purely to maximise headline capacity. A larger system may not always produce better returns if weekend shutdowns, low daytime consumption or seasonal operations result in unused surplus energy. Before choosing a bank loan, PPA or solar leasing structure, the business should review its half-hourly load profile, daytime consumption, tenancy period, rooftop suitability and future expansion plans.
For businesses with strong daytime energy demand, a bank loan may maximise long-term ownership value. For businesses that want immediate savings without capital expenditure, a PPA may be more practical. For businesses that prefer fixed operating expenses, solar leasing may be considered, provided the lease rental, maintenance scope and end-of-term position are clearly understood.
Commercial Solar Financing Options in Malaysia: Indicative Bank and Green Financing Comparison
Before comparing bank loans, PPAs and solar leasing in detail, businesses should understand the types of financing routes available in Malaysia. The table below is intended as a practical starting point for discussion with banks, financial institutions and solar solution providers.
Note: The rates, amounts and tenures below are indicative discussion points only and have not been independently checked or verified with the relevant banks or financiers. They should not be treated as official bank quotations, approved financing terms or representations by any financial institution. Actual approval, interest/profit rate, security, documentation, tenure and disbursement terms will depend on the latest product terms, the applicant’s credit profile, project size, security package and bank approval. Bank rates are not prescribed by Solar ATAP, GITA, GITE or GTFS official guidelines and should be checked directly with the relevant financier.
| Provider / Route | Indicative rate or pricing basis | Typical tenure | Amount / scale | Best suited for |
|---|---|---|---|---|
| MGTC / CGC GTFS 5.0 through participating financial institutions | Rate/profit rate determined by the participating financial institution; government guarantee support may apply | Up to 15 years, depending on category | GTFS 5.0 provides a government guarantee on the green component cost financed by participating financial institutions, generally up to 80% for the waste sector and up to 60% for other sectors such as energy (including solar), manufacturing, transport, building and water, subject to sector/category, MGTC/CGC approval and the participating financier’s terms. | Companies seeking green project financing for capex or working capital linked to qualifying green technology projects |
| CIMB green or business financing, including SME sustainability / GreenBizReady-type facilities | Current rate/profit rate should be obtained directly from CIMB or the relevant facility provider. | Commonly up to 7 to 10 years depending on product and borrower profile | Suitable for smaller commercial systems through to SME-scale projects, subject to credit approval | SMEs and business owners who want bank financing but need advisory support on sustainability-linked facilities |
| Maybank solar / green / SME financing routes | Current rate/profit rate should be obtained directly from Maybank or the relevant facility provider; selected solar payment plans and SME facilities may differ. | Commonly up to 5 to 7 years for smaller facilities; other business facilities vary | Project amount depends on product type, credit profile and security | Businesses comparing conventional bank financing, card instalment arrangements or SME facilities |
| Public Bank, RHB, Bank Islam, BSN and other commercial or Islamic financing routes | Current rate/profit rate should be obtained directly from the relevant bank or Islamic financier and will depend on the facility type, borrower profile, security and approval terms. | Commonly 5 to 10 years; longer tenure may require stronger security or project finance structure | Depends on facility type, borrower profile and project size | Businesses that want to compare multiple bank quotes, including Islamic financing options |
| Solar PPA by a solar solution provider | No bank interest rate for the customer; customer pays an agreed solar tariff per kWh supplied | Often 15 to 20 years, depending on project economics | Usually suitable for commercial and industrial rooftops with sufficient daytime consumption | Businesses that want solar with zero or minimal upfront capital and a fully managed solution |
| Solar leasing / ESCO arrangement | Fixed monthly lease rental or service fee rather than a tariff per kWh | Commonly 5 to 15 years depending on asset, provider and commercial terms | Suitable where the business wants predictable monthly operating expense | Businesses that prefer asset-light solar adoption without outright ownership |
Option 1: Bank Loan
How It Works
Under a bank financing arrangement, the business purchases the solar PV system using financing provided by a bank or financial institution. The business owns the system while repaying the financing through agreed instalments, allowing it to enjoy the electricity savings generated by the system throughout its lifespan.
In Malaysia, this may involve a conventional term loan, Islamic financing facility, green financing facility, SME financing package, sustainability-linked financing or a GTFS-supported facility through a participating financial institution, depending on project size and eligibility.
Advantages
1. Full Ownership and Complete Control
With a bank loan, your business owns the solar PV system from day one. This means you have full control over the asset and enjoy all the electricity generated, without being tied to a third-party energy supply arrangement. Once the financing is fully repaid, your business continues to benefit from lower electricity costs for the remaining lifespan of the system.
2. Stronger Long-Term Financial Returns
Although a bank loan requires monthly repayments, the solar system continues generating electricity throughout the financing period. After the loan is fully settled, your business can enjoy years of reduced electricity costs with only routine operation and maintenance expenses, making ownership one of the most cost-effective options over the long term.
3. Potential Access to GITA / GITE and Green Technology Incentives
Businesses investing in qualifying commercial solar PV systems in Malaysia may be able to explore Green Investment Tax Allowance (GITA), Green Income Tax Exemption (GITE), GTFS 5.0 or other green technology incentives, subject to approval and the prevailing guidelines issued by MIDA, MGTC and other relevant authorities. Ownership-based incentives are generally more relevant where the business owns the solar PV system, which is why a bank-financed purchase may be attractive for eligible companies.
You may also wish to read Avera Energy’s related guide on GITA and GITE incentives for solar projects in Malaysia.
4. Builds Business Assets and Enterprise Value
Unlike a PPA or leasing arrangement, a purchased solar PV system becomes a long-term asset of the business. Besides generating ongoing electricity savings, it may enhance the value of the property or business and strengthen the company’s balance sheet, which can be beneficial for future financing or investment opportunities.
5. Greater Flexibility in the Long Run
As the owner of the solar PV system, your business has greater flexibility to upgrade, expand or integrate additional technologies such as battery energy storage systems (BESS) or electric vehicle (EV) charging infrastructure as your energy needs evolve, subject to technical and regulatory requirements.
Important Considerations
1. Financing Approval Is Required
Bank financing is subject to the lender’s credit assessment and approval process. Businesses may need to provide financial information, supporting documents, board approvals and, depending on the financing structure, security or guarantees before the loan is approved.
2. Monthly Repayment Obligations
Loan repayments typically commence once the financing is disbursed, regardless of the amount of electricity generated by the solar PV system. Businesses should ensure that the projected energy savings and cash flow are sufficient to support the repayment obligations.
3. Interest Rate and Tenure Can Affect Payback
A lower system price does not automatically mean a better financial outcome if the interest rate, profit rate, tenure, security package or early settlement terms are unfavourable. Businesses should compare the effective monthly instalment against projected solar savings, not just the quoted system cost.
4. Ownership Comes with Ongoing Responsibilities
As the owner of the solar PV system, the business is ultimately responsible for its performance, operation, and long-term upkeep. While these responsibilities can be outsourced through an operation and maintenance (O&M) agreement, they remain part of the overall ownership commitment.
5. Higher Upfront Financial Commitment
Although bank financing reduces the need to pay the full purchase price upfront, businesses will still incur financing obligations and may be required to contribute an initial payment or bear associated costs such as legal fees, stamp duty, or financing charges, depending on the lender and facility structure. As a result, bank financing generally involves a greater financial commitment than zero-capital solutions such as PPAs or certain solar leasing arrangements.
Option 2: Power Purchase Agreement (PPA)
How It Works
A PPA enables businesses to enjoy the benefits of solar energy without purchasing or owning the solar PV system.
Under this arrangement, a solar solution provider designs, finances, installs, owns, operates, and maintains the solar PV system on the business’s premises. Instead of paying for the system itself, the business purchases the electricity generated by the system at a pre-agreed tariff for a specified contract period.
Because the business pays only for the electricity supplied, a PPA generally requires little or no upfront capital investment, making it an attractive option for organisations in Malaysia looking to reduce electricity costs while preserving cash flow.
Advantages
1. Zero or Minimal Upfront Capital Investment
One of the biggest advantages of a PPA is that businesses can adopt solar without making a substantial capital investment. Instead of allocating funds to purchase equipment, businesses can redirect their capital towards expansion, operations, or other strategic initiatives while still benefiting from renewable energy.
2. Immediate Electricity Cost Savings
PPA tariffs are often structured to be lower than the applicable utility electricity tariff at the time of execution, subject to the agreed tariff, escalation or adjustment mechanism and contract terms. This may allow businesses to start reducing their electricity costs from the first day the system begins operating.
3. Fully Managed Solar Solution
The solar provider is typically responsible for the ongoing operation and maintenance of the system throughout the contract period, including:
- System monitoring
- Preventive maintenance
- Repairs and troubleshooting
- Replacement of faulty components
- Performance optimisation
This allows businesses to enjoy the benefits of solar energy without having to manage the technical aspects of system ownership.
4. Better Cash Flow Management
Since there is generally no significant upfront investment and payments are made based on electricity consumption, businesses can reduce electricity costs without increasing their capital expenditure. This helps preserve cash flow and improve financial flexibility.
5. Greater Certainty Over Energy Costs
Most PPAs provide a pre-agreed pricing structure for the duration of the contract or include a clearly defined tariff adjustment mechanism. This gives businesses greater visibility over future electricity costs and helps reduce exposure to fluctuations in conventional electricity tariffs.
Considerations
1. The Business Does Not Own the Solar Asset
Under a typical PPA arrangement, the solar PV system remains the property of the solar solution provider throughout the contract period. While this eliminates the need for a large upfront investment and ownership responsibilities, businesses generally do not own the asset unless the agreement includes an option to purchase the system during or at the end of the PPA term.
2. Ownership-Based GITA Benefits May Not Belong to the Customer
As the customer does not usually own the solar PV system under a PPA, ownership-based incentives such as GITA Asset for Own Consumption would generally not be claimed by the customer. The solar provider may consider its own incentive position depending on the project structure, but the customer should focus on whether the PPA tariff already reflects the intended commercial savings.
3. Long-Term Contract Commitment
PPAs are generally long-term arrangements, with contract periods commonly ranging from 15 to 20 years, although longer terms may be agreed depending on the project and commercial requirements. Businesses should ensure that the contract duration aligns with their operational needs, tenancy arrangements, and long-term business plans.
4. Early Termination May Involve Additional Costs
As the solar solution provider typically incurs significant upfront costs to finance and install the system, terminating the PPA before the agreed term may result in termination fees or other contractual obligations. Businesses should carefully review the termination provisions and understand the circumstances under which the PPA may be ended.
Option 3: Solar Leasing
How It Works
Solar leasing allows businesses to use a solar PV system without purchasing it outright by paying a fixed periodic lease rental over an agreed lease term.
Unlike a PPA where payments are based on the electricity generated or consumed, lease payments are generally predetermined and are not directly linked to the amount of electricity generated or consumed. This provides businesses with predictable monthly expenses while enabling them to benefit from renewable energy.
The leasing provider typically retains ownership of the solar PV system throughout the lease period, while the business uses the system to generate electricity for its operations.
Advantages
1. Lower Upfront Capital Requirement
Solar leasing offers businesses a way to adopt solar with predictable monthly expenses and lower upfront capital requirements. For businesses seeking little or no upfront investment, immediate electricity savings and a fully managed solution, a PPA may also be worth considering.
2. Predictable Monthly Expenses
Lease rentals are generally fixed throughout the agreed lease period, providing greater certainty over monthly payments and making budgeting and financial planning easier.
3. Flexible Ownership Strategy
For businesses that prefer an asset-light model, solar leasing provides access to renewable energy without the need to purchase and own the solar PV system.
4. Potentially Reduced Operational Burden
Depending on the lease structure, the leasing provider may be responsible for system monitoring, maintenance, and servicing, allowing businesses to focus on their core operations instead of managing solar assets.
Considerations
1. The Business Generally Does Not Own the Solar PV System
Under a typical leasing arrangement, the leasing provider retains ownership of the solar PV system throughout the lease term. Some lease agreements may include options to purchase the system at the end of the lease period, so businesses should review the ownership and purchase provisions carefully.
2. GITA / GITE Treatment Depends on the Structure
For a business using the solar PV system, solar leasing will usually not provide the same ownership-based tax incentive position as purchasing the system through a bank loan or direct purchase. This is because, under a typical solar leasing arrangement, the solar PV system is owned by the leasing provider or project owner, not the customer paying the lease rental.
GITE Solar Leasing is generally relevant to qualifying solar leasing companies or project owners, rather than automatically available to the customer using the solar PV system. Businesses should therefore review the tax and accounting treatment of the arrangement before signing the lease agreement.
3. Total Lease Costs Should Be Evaluated
Although leasing reduces the need for significant upfront capital, the total lease payments over the full term may exceed the cost of purchasing the system outright. Businesses should evaluate the overall financial impact rather than focusing solely on the monthly rental amount.
4. Review End-of-Term and Renewal Options
Businesses should understand what happens when the lease expires, including whether the system will be returned, renewed, upgraded, or made available for purchase. Reviewing these provisions in advance can help avoid unexpected costs and support long-term planning.
Worked Cost Example: Bank Loan vs. PPA vs. Solar Leasing
The example below shows how the same commercial solar PV system can produce different monthly cash-flow outcomes depending on the financing model. It is simplified for illustration and should not be treated as a quotation, financial advice, tax advice, an official tariff, or a guaranteed saving. Actual savings will depend on the applicable TNB tariff components, Solar ATAP export-credit treatment, load profile, system performance and contract terms.
| Assumption | Illustrative figure |
|---|---|
| Commercial rooftop solar PV system size | 250 kWp |
| Estimated cost to buy the solar system | RM750,000 |
| Estimated electricity produced by the solar system each month | 27,500 kWh |
| Illustrative grid electricity rate used for calculation (not an official tariff) | RM0.50/kWh |
| Estimated monthly electricity bill savings from solar | 27,500 kWh x RM0.50/kWh = RM13,750 |
| Financing option | Example payment assumption | Monthly payment | Illustrative monthly solar value / savings | Net monthly position before tax |
|---|---|---|---|---|
| Bank loan | RM750,000 loan, 6% p.a., 7-year tenure | Approx. RM10,956 loan instalment | Approx. RM13,750 electricity value | Approx. RM2,794 positive monthly position during loan period; stronger savings after loan repayment |
| PPA | PPA tariff RM0.40/kWh for 27,500 kWh supplied | Approx. RM11,000 solar energy payment | Approx. RM13,750 equivalent grid electricity value | Approx. RM2,750 immediate monthly savings with no upfront capex |
| Solar leasing | Fixed lease rental of RM8,500/month | Approx. RM8,500 lease rental | Approx. RM13,750 electricity value | Approx. RM5,250 positive monthly position, subject to maintenance scope and lease terms |
The example shows why businesses should compare financing options using actual monthly cash flow, not only headline system price. A bank loan may provide stronger lifetime value once the loan is repaid, but a PPA can be more attractive where preserving cash is the priority. Solar leasing can provide predictable expenses, but the lease terms, maintenance scope and end-of-term rights must be reviewed carefully.
Summary Table
| Feature | Bank Loan | Power Purchase Agreement (PPA) | Solar Leasing |
|---|---|---|---|
| Upfront Capital | Moderate, depending on financing structure | Usually none or minimal | Usually low or none |
| Solar PV System Ownership | Business | Solar solution provider | Leasing provider |
| Payment Basis | Loan instalments based on principal, interest/profit rate and tenure | Payment for electricity consumed or supplied at agreed PPA tariff | Fixed lease rental |
| Typical Term | Often 5 to 10 years for loan repayment; system life may exceed 20 years | Often 15 to 20 years depending on project economics | Commonly 5 to 15 years depending on lease structure |
| Maintenance | Business, although it may outsource through an O&M agreement | Typically managed by the solar solution provider | Depends on lease structure |
| How Savings Are Achieved | Business retains all electricity savings, subject to financing repayments and operating costs | Reduced electricity costs through an agreed solar tariff | Reduced electricity costs while paying fixed lease rental |
| GITA / GITE and Ownership-Based Incentives | Potentially available for qualifying ownership structures, subject to approval | Customer generally does not claim ownership-based GITA; provider’s incentive position depends on structure | Customer generally does not claim ownership-based GITA; GITE Solar Leasing may be relevant to qualifying lessor/project owner |
| Solar ATAP 2026 Impact | Right-sizing is important because unused export credit may be forfeited within the same billing period | Provider should size system to maximise customer savings and reduce unused surplus | Lease rental should be tested against realistic self-consumption and export credit assumptions |
| Suitable For | Businesses seeking long-term ownership and maximum lifetime savings | Businesses seeking immediate electricity savings with zero or minimal upfront investment | Businesses preferring predictable monthly expenses without owning the solar system |
Which Solar Financing Option Is Right for Your Business?
There is no one-size-fits-all solution when it comes to commercial solar financing in Malaysia. The best option depends on your business’s financial priorities, investment strategy, rooftop suitability, Solar ATAP position and long-term objectives.
Choose a Bank Loan if your business:
- Has access to financing and a healthy credit profile
- Wants to own the solar PV system and benefit from its long-term value
- Is looking to maximise lifetime electricity savings
- Plans to operate from the same premises for many years
- Wishes to explore GITA, GTFS 5.0 or other available green technology incentives, subject to approval and prevailing guidelines
- Is comfortable managing the solar asset or appointing an operation and maintenance (O&M) provider
A Bank Loan is often ideal for businesses that view solar as a long-term investment rather than simply an operating expense.
Choose a PPA if your business:
- Wants to avoid significant upfront capital expenditure
- Prefers to preserve cash flow for expansion or operational needs
- Seeks immediate electricity cost savings
- Prefers a fully managed solar solution with minimal operational responsibilities
- Does not wish to own or maintain the solar PV system
- Values predictable energy costs through a long-term electricity supply arrangement
A PPA is particularly suitable for businesses looking to reduce electricity costs without making a substantial capital investment.
Choose Solar Leasing if your business:
- Prefers fixed monthly lease payments instead of variable electricity charges
- Wants to adopt solar without purchasing the system outright
- Seeks predictable operating expenses for budgeting purposes
- Prefers using solar infrastructure without taking on ownership responsibilities
- Wants to preserve capital for other business investments
Solar leasing offers businesses a way to adopt solar with predictable monthly expenses and lower upfront capital requirements. However, businesses seeking immediate electricity savings with a fully managed solution may also wish to consider a PPA.
Factors to Consider Before Making a Decision
Before selecting a financing model, businesses should evaluate both their current requirements and long-term business strategy.
Consider the following questions:
1. How Much Capital Can Your Business Commit?
If preserving cash flow is a priority, a PPA or solar leasing arrangement may be more suitable than purchasing the system through a bank loan.
2. Do You Want to Own the Solar PV System?
Businesses that value long-term asset ownership and maximum lifetime savings may prefer a bank loan, while those that prioritise flexibility may find a PPA or lease more attractive.
3. How Long Will You Occupy the Premises?
Businesses operating from owned premises or with long-term tenancy arrangements may benefit more from ownership-based financing. For shorter tenancy periods, a PPA or leasing arrangement may provide greater flexibility.
4. What Are Your Cash Flow Priorities?
Some businesses prefer to minimise upfront costs, while others focus on achieving the highest possible long-term return on investment.
5. Are GITA, GITE or Green Technology Incentives Important?
Ownership-based financing may allow eligible businesses to explore GITA Asset for Own Consumption or GITA Project incentives, subject to approval and prevailing guidelines. If tax incentives are a key part of the investment case, the business should check the incentive position before choosing between ownership, PPA or leasing.
6. What Is Your Expected Electricity Consumption?
A detailed analysis of historical electricity usage and future expansion plans can help determine which financing model delivers the greatest value.
7. Is Your Rooftop Suitable for Solar?
Factors such as available rooftop space, structural integrity, shading, and electricity demand should be assessed before selecting a financing option.
8. How Does Solar ATAP Affect Your System Size?
Because unused exported energy may be forfeited if it is not used within the same billing period, businesses should size the system based on actual consumption patterns rather than rooftop area alone. This is especially important for factories, warehouses, offices, malls and schools with different weekday, weekend and seasonal load profiles.
Ultimately, a detailed technical and financial assessment can help identify the financing structure that best aligns with your business objectives, energy consumption profile and long-term financial goals.
Frequently Asked Questions (FAQ)
Which financing option is the most popular for businesses in Malaysia?
The most suitable financing option depends on a business’s financial priorities and operational needs. However, Power Purchase Agreements (PPAs) have become an increasingly popular choice among commercial and industrial businesses in Malaysia because they require little or no upfront capital investment while delivering immediate electricity cost savings and a fully managed solar solution.
Businesses seeking long-term ownership and maximum lifetime returns often prefer bank financing, while solar leasing may appeal to organisations that value predictable monthly expenses and operational simplicity.
What is Solar ATAP and how does it affect commercial solar financing?
Solar ATAP is Malaysia’s rooftop solar framework for consumers who install solar PV primarily for their own consumption. For commercial users, it affects financing because the system should be sized around actual consumption and bill-credit rules. If too much energy is exported and cannot be used within the same billing period, the financial return may be lower than expected.
Can SMEs apply for commercial solar financing?
Yes.
Many financial institutions and solar solution providers offer financing options suitable for small and medium-sized enterprises, subject to their respective credit assessment and approval processes.
Which banks offer solar financing in Malaysia?
When exploring solar financing in Malaysia, your business does not need to look at only one option. Many businesses start by comparing green, SME or sustainability-linked financing packages from banks such as CIMB, Maybank, Public Bank, RHB, Bank Islam and BSN, together with GTFS 5.0-supported financing offered through participating financial institutions.
The final financing terms will still depend on your business profile, the size of the solar project, the bank’s approval requirements, and whether any security or supporting documents are required. This is why it is helpful to compare a few options before deciding which financing route gives your business the right balance between upfront cost, monthly repayment and long-term savings.
Which financing option offers the best return on investment?
There is no one-size-fits-all answer.
Businesses with sufficient capital or financing capacity often achieve stronger long-term returns through ownership, while businesses prioritising liquidity and operational flexibility may benefit more from a PPA or solar leasing arrangement.
The optimal solution depends on each company’s financial objectives and operational priorities.
Does a PPA affect GITA or GITE tax incentives?
Under a PPA, your business can enjoy solar energy without having to purchase or own the solar PV system. However, because the solar PV system is usually owned by the solar provider or project owner, your business would not typically be the party claiming ownership-based incentives such as GITA Asset for Own Consumption.
Instead, the solar provider or project owner may separately assess whether GITA or GITE applies to them, depending on how the project is structured. Before signing the PPA, it is helpful for your business to review the tax and incentive treatment clearly, so you understand what benefits apply to you and what benefits may sit with the solar provider.
Can I purchase the solar PV system at a later stage under a PPA or lease?
It depends on the agreement.
Some PPAs and solar lease arrangements include an option for the business to purchase the solar PV system during or at the end of the contract term. The availability, pricing, and conditions of any buyout option will vary between providers.
Who is responsible for maintaining the solar PV system?
The answer depends on the financing model.
- Under a bank loan, the business is generally responsible for maintenance, although this can be outsourced through an operation and maintenance (O&M) agreement.
- Under a PPA, the solar solution provider typically manages system operation and maintenance.
- Under a solar lease, maintenance responsibilities depend on the terms of the lease agreement.
What documents should a business prepare before applying for solar financing?
Before your business starts the solar financing or application process, it is helpful to prepare the key documents and information that a bank, solar provider or technical consultant may ask for. This usually includes your recent electricity bills, company profile, audited or management accounts, tenancy agreement or proof of ownership of the premises, basic rooftop information, and load profile data if available.
Your business may also need to check its internal approval process, such as whether board, management or finance approval is required before entering into a bank financing arrangement, PPA or solar leasing agreement. If your company has internal ESG, sustainability or carbon reduction targets, these can also be useful to share, as they help align the solar proposal with your wider business goals.
For Solar ATAP applications, your business will usually need to work with a Registered Photovoltaic Service Provider or the relevant appointed party to manage the technical submission requirements. Having the necessary documents ready early can make the process smoother, reduce back-and-forth, and help your business move from feasibility review to approval and installation more efficiently.
Start Your Commercial Solar Journey with Avera Energy
At Avera Energy, we help businesses in Malaysia evaluate commercial solar financing options and identify the solution that best aligns with their operational needs, financial objectives and long-term sustainability goals.
As a commercial solar solutions provider with expertise in Power Purchase Agreements (PPAs), Avera Energy can help businesses transition to solar with little or no upfront capital investment while enjoying immediate electricity cost savings and a fully managed solar solution. For businesses exploring ownership-based models, we can also support the evaluation of bank-financed solar systems, Solar ATAP implications, GITA / GITE considerations and solar leasing arrangements.
From feasibility studies, rooftop assessment and energy consumption analysis to financial modelling, PPA structuring and project implementation, our experienced team is here to guide your business through every stage of its commercial solar journey.
Request a commercial solar financing assessment with Avera Energy today and find out whether a bank loan, PPA or solar leasing model delivers the best savings for your business in Malaysia.
Note: The information in this article is updated as at 8 July 2026. As official guidelines may be updated from time to time, please refer to the latest guidelines issued by the relevant authorities and consult your appointed solar service provider and/or professional adviser before making any decision or application.
